Do You Really Understand Comparative Advantage?

The theory of comparative advantage shows how voluntary exchange benefits both parties and encourages specialization. You don't need to possess an absolute advantage in any particular productive activity to enjoy a comparative advantage. Your comparative advantage is whatever you can do relatively cheaply compared to everything else and everyone else. For instance, Haiti still trades … Continue reading Do You Really Understand Comparative Advantage?

Does Comparative Advantage Not Work for Buffalo?

Nick Gillespie notes in a recent post: [I]f working on Reason Saves Cleveland taught me one thing, it's that there's no simple solution to urban decline. Some of it is simply historical - the Northeast is not going to dominate American business and culture that way it did 100 years ago and cities such as … Continue reading Does Comparative Advantage Not Work for Buffalo?

“Alabama’s immigration law is economically absurd”

So says my friend Scott Beaulier, an economist at Troy University: Immigrants -- both legal and illegal -- are a force for good. They create jobs, they enrich culture and they make our state a more interesting and dynamic one in which to live. Alabama's immigration law is a pathetic, backward attempt to play politics … Continue reading “Alabama’s immigration law is economically absurd”