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by TheBlack_knight
5658 days ago
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Those look good just glancing over them. To move beyond simple comparative advantage (if you're interested) I would recommend looking into the Heckscher-Ohlin theorem as well. It expands upon comparative advantage adding another level of complexity and more insight. Empirically the theorem has been mostly proven, something that not all economic theories are able to pass. The Wikipedia page looks like a good overview: http://en.wikipedia.org/wiki/Heckscher%E2%80%93Ohlin_model Most insights into the benefits of trade can be seen in the Ricadrian comparative advantage model (see post above). |
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To put this in hacker terms, these simple rules are about as simple as the http protocol. Now imagine the software that implements this simple protocol. Think of all the different ways to exploit it. Now imagine all the complex systems that can be created using these simple rules. Now add hackers, DDOS, government censorship, wikileaks, peering disputes, etc.
Economists would have us believe that these simple rules are "how it is". Now imagine the millions of people it takes to actually implement these simple rules. Imagine what it takes to actually make wine in Portugal. Now add that these people want pensions. Now include that these simple rules assume currency equivalence, or something like the gold standard to mediate production disparities. Now add the governments on top of this "protocol".
To believe this "proven economic theory" you have to live in a virtual machine.