Free Trade Distilled
Lance on Jan 22 2008 at 4:03 pm | Filed under: Domestic Politics, Economics, Lance's Page
Megan McCardle looks at some silly arguments at Max Sawickey’s old place on trade. Read the whole thing, but she hits the nail on the head here:
Sphere: Related ContentThere are three possibilities for what will happen if we liberalize trade:
1) We will sell more stuff to foreigners than they sell to us. Since we can’t use all those funny banknotes, we will essentially be giving them free stuff.
2) Over the long run, we will sell about as much stuff to foreigners as they sell to us.
3) Over the long run, foreigners will sell us more stuff than we sell to them. Since they can’t use all those funny banknotes, they will essentially be giving us free stuff.
