I really enjoyed reading a Good Capitalism, Bad Capitalism by Baumol, Litan, and Schramm. I like the way they discuss trade and protectionism from the standpoint of 50 states. If being self-sufficient is such a great thing, what if we used the same rationality to defend protectionism to save jobs within individual states. Why should we in Minnesota be totally dependent on foreign sources of orange juice (to California and Florida)? After all couldn't we generate jobs in Minnesota by developing a fruit and juice industry? Of course trade is all about comparative advantage and opportunity cost, but that point is lost on most people. All the more reason to push onward with Economic Education.
No comments:
Post a Comment