Re: Why Outsourcing is Good

"nospam" <nospam@xxxxxxxxxxx> wrote in message
news:asednS8e2rWquFHeRVn-qA@xxxxxxxxxxxxxx
> Just Cocky wrote:
>
>> On Mon, 16 Jan 2006 06:52:27 -0500, nospam <nospam@xxxxxxxxxxx> wrote:
>>>
>>>Trade does NOT create wealth, only put it in value.
>>>
>>
>> Of course trade creates wealth!
>>
>> If my neighbor has fuel and I have food, *BOTH* of us will be better
>> off if we trade and have both fuel and food.
>>
>> It's a simple notion, really, hallmarked in the theory of comparative
>> advantage.
>
> The wealth overall in the society does not change by trade.
> What change is the availability of wealth where it have usage value.
>
>
> If I have one year worth of oil and you one year worth of food regardless
> of how much trade we do betwen us, we are not going to survive until in our
> 90's. To do that we need to produce more food and more oil.


Well done, sir.

The latest fad is "comparative advantage". Some seem to think
that Smith's "division and specialization of land and labor" never
existed and that this phenomena described by Smith and others
has been replaced or outdated by new buzz words. Yet in the
example offered by "Cocky" neither of these is operating as
the "goods" just sprang forth from the earth in full form. Oil (as
opposed to fuel), of course, is a naturally occuring source
of wealth and power as it can provide the capacity to forgo labor.

--
"I know no safe depository of the ultimate powers
of society but the people themselves; and
if we think them not enlightened enough to
exercise their control with a wholesome
discretion, the remedy is not to take it from
them, but to inform their discretion by
education." - Thomas Jefferson
http://GreaterVoice.org


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