How the fuck can a *Billionaire, like Trump not understand a concept as simple as Comparative Advantage?
-
Show this thread
-
I guess maybe I should explain what comparative advantage is? So it is one of the reasons why this "Merica needs to be fully self sustaining!" is bad, not only for our trading partners, but also for Americans.
1 reply 0 retweets 3 likesShow this thread -
Comparative Advantage explains how countries working together, even if one is much less productive, results in a surplus of goods that one country alone could not create. How is that possible? Okay so this was the example that I first read about.
2 replies 0 retweets 2 likesShow this thread -
Lets say that a US worker can produce 10 cars or 5 bags of grain & a Mexican worker can produce 2 cars or 3 bags of grain. Now, if Mexico & US work together 2 Mexican workers can stop producing cars to produce grain & 1 US worker can stop producing grain to produce cars.
1 reply 0 retweets 4 likesShow this thread
Now even after Mexico trades the US, grain for cars, there is still 1 more bag of grain & 8 more cars in the world than there would otherwise be. That's why being Nationalistic & isolationistic hurts countries economically. Globalization works for a reason people!
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.