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by ZeroGravitas
1374 days ago
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You don't need to have a competitive advantage to gain from trade. You don't even need a comparative advantage. You think that trading electricity to the rest of Europe will let them take your manufacturing industry. So your plan is to pointlessly increase Europe's electricity prices by breaking the market mechanisms that allow trade? That is not a good plan. It's not a good plan if you want to support local industry and it's not a good plan if you don't. It's just not a good plan. At best, you could claim that there's nothing else you can do that would work, and so this bad plan is better than all the other worse options but frankly it's not a very convincing case. |
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Why would any industry start here if it means higher labor costs if all else is equal? How do we compete then? We've already seen much industry being moved to for example Latvia, or Russia, or China, or Vietnam. And that was with the cheap electricity.
We're not the one "pointlessly" increasing Europe's electricity prices. They did that to themselves by combining the gas and electricity markets in the first place. And relying on Russia for their energy needs, instead of building more energy for themselves.