2 Mar 2010

Trade is good for us! All of us?

Russ Roberts explains, and I agree, with two caveats:
  1. For more on the pain involved in creative destruction, consider the case in Malaysia, where capital did well but labor did not. This pain is important in societies dominated by agriculture, where free trade may hurt the majority.
  2. Russ missed a VERY important point -- much of our current prosperity and lifestyle is based on MINING natural resources (I use that word in its dynamic sense, which includes over-exploitation of "renewable" resources.) I know that we would be doing pretty well without mining, but our pace and level of consumption is NOT sustainable.
Bottom Line: Accurate accounting means that you count everyone and everything that's relevant. Miss something and you may think that a loss is a profit.