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?
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?
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”