kaz
Diamond Member
- Dec 1, 2010
- 78,025
- 22,327
And most people would have learned the difference between competitive advantage and comparative advantage even earlier. Do you have any idea what the difference is?"Comparative Advantage" is a basic economic principle, usually encountered in the second week of an introductory economics class....No, it makes perfect sense to have a free market within the US economy and qualified trade agreements with other countries. Renegotiating trade agreements and imposing tariffs where necessary in no way limits your freedom as a businessman to move your company anyplace you choose, it simply changes the economic environment in a way that makes it unprofitable to move it to less developed countries because of cheaper labor and fewer environmental regulations, or to countries that maintain an unfair competitive advantage by manipulating their currencies.Nope, I am describing free market capitalism within the US economy, no economic isolationism, replacing multilateral trade agreements that drive US jobs to less developed countries with cheaper labor and fewer environmental regulations and replacing them with bilateral trade agreements such as we had before the Clintons.
Calling it free market and saying no free trade is an oxymoron. Either we decide what business we want to engage in or the government does. That you can go out in the yard an hour a day in your prison doesn't make you a free man
I am a pragmatist, not an ideologue, so I am more interested in practical outcomes than what is ideologically correct. Right now because of our trade imbalances, the US is selling off its assets, real estate, corporations, even technologies, to pay for our standard of living. If you had to sell off your assets to pay your bills, would you consider that a sustainable policy? Of course not, and it is not a sustainable policy for our nation, either. Redefining our trade relations will help reduce our trade deficits and prevent jobs from leaving out country and many even bring some of those jobs home, and it will allow us to come closer to living on what we earn rather than having to sell off our country to pay our bills.
Of course there will be political fallout from this change of policy. Countries that have benefited from the current trade imbalance will rage against us, but I believe Americans will be better off reducing our trade deficit and keeping our jobs at home amid all the foreign outrage than it is now.
Do you have any idea why it is important?
The only difference is the context in which the term is used