Throwing the Baby Out With the Bathwater: Keep the WTO
Should the U.S. pull out of the WTO or even shut down the entire enterprise? No. This would be throwing the baby out with the bathwater. Keep the WTO! Continue Reading →
Tag Archives: comparative advantage
Understanding Comparative Advantage: Opportunity Cost and the PPF
At its heart, the theory of comparative advantage is not extremely difficult. David Ricardo simply discovered that what matters is relative prices and productivity. Absolute cost is unimportant. But the Continue Reading →
Ricardo’s Difficult Idea
Paul Krugman used to be a terrific economist. One of his lesser-known essays is about David Ricardo and comparative advantage. The essay is still available on the MIT website. I’ve included a pdf version below. This article is about Ricardo’s difficult idea — comparative advantage. Continue Reading →
David Ricardo and Comparative Advantage
Second, redouble your efforts to educate the public on the merits of free trade. Current public opinion and political winds seem to indicate a serious lack of information on this subject. Continue Reading →