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I note neither of you saw fit to reply to this comment upthread.
by Colman (colman at eurotrib.com) on Tue Jun 13th, 2006 at 02:31:50 AM EST
[ Parent ]
I didn't see that comment, honestly.  My initial look at the thread was only a quick one.  Part of my response will be in a reply to Migeru below, because I think he brought up an important point that requires a much longer discussion.  Perhaps a diary.  Inevitably the real world will be too complex for the basic point I made.

I think the author you quote made a decent overall point.  His last sentence is wrong, in my opinion.  When China opened its doors to trade, for example, the result was reasonably predictable.  Jobs that didn't require a highly-skilled worker went to a country with a large pool of unskilled labor -- that large pool translating to lower costs.  Ricardo was simply taking Smith's division of labor a step forward to build a trade theory at a time when economists were at war against mercantilism.

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin

by Drew J Jones (myfriends@thisispancakes.com) on Tue Jun 13th, 2006 at 09:25:53 AM EST
[ Parent ]
I am generally in agreement with what he said.

The point about "full employment of resources" is also key. In a world of global industrial overcapacity, industry location can have huge impacts on employment and wage structures, as people living in the US "rustbelt" well know.

by TGeraghty on Tue Jun 13th, 2006 at 02:18:04 PM EST
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