Thursday, February 26, 2009

Will Protectionism Be Our Downfall?

Mr. Obama talks about not rewarding companies who ship jobs overseas... 

I suggest he look up comparative advantage

I know that I have sufficiently argued my point against protectionism, why self-sufficiency undoubtedly hinders more than it helps, and why comparative advantage truly helps the entirety of our populace in the long run.

Here's my extremely simple example to really get my point across... Imagine there are two people working on the same project and allowed to work together, but are getting two separate grades. Let's say the project has two components, one being mathematical, the other being writing-based. Person A is exceptional at math, but only has average writing skills, while Person B has outstanding verbal prowess, yet lacks such a status at math. Each person can make the best project if Person A does their own math, and greatly helps Person B with their math, while Person B would do the writing portion by themself, concurrently substantially aiding Person A with their writing portion. 
By each person doing what each is most adroit at, both parties get the best grade, and both parties win.

Now, the people are countries, math and writing are two different goods, and the project is GDP. 

It speaks for itself... Protectionism will only kill us. 

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