The Trade Myths that refuse to die
But in any case, this is a huge idea, and one that America desperately needs in these trying times. For half a century, we assumed that America was this golden goose — the greatest industrial nation in the world, blah blah — that would reliably pump out massive amounts of stuff, and that we were all essentially just the custodians of this cornucopi... See more
Book review: "Abundance"
A country (or a person) will always be the low-cost seller of some good. The reason is clear: The greater the advantage a country has in producing A, the greater the cost to it of producing B. If you are a great pianist, the cost to you of doing anything else is very high. Thus, the greater your advantages in being a pianist, the greater the incent
... See moreAlex Taborrok • Modern Principles of Economics
As Professor Michael Pettis of Peking University and the coauthor of Trade Wars Are Class Wars argues, countries should export in order to import and increase consumption and the standard of living for their people. This is how comparative advantage and the added economic value of trade is supposed to work.