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Why Ricardian Comparative Advantage Doesn't Work|
- flogging a dead horse
They say that successful people take responsibility for mistakes. Losers such as six times bankrupt cry-baby war criminal, The Donald, always blame others. And let's face it these corrupt and incompetent clowns have NO ONE to blame but themseles. But as usual they accuse others by simply describing themselves.
Ricardo’s theory said that trading nations are endowed with attributes that gave them a relative advantage in producing certain goods versus others.
. . .
But if the theory of comparative advantage were true, Japan would still be exporting tuna fish instead of cars, computers, TVs, steel and much more.
. . .
The problem with this theory of comparative advantage is that the factors of production are not permanent and they are not immobile.
If labor moves from the countryside to the city in China, then suddenly China has a comparative advantage in cheap labor. If finance capital moves from New York banks to direct foreign investment in Chinese factories, then China has the comparative advantage in capital also.
. . .
We live in a world where the U.S. is a free trade sucker and everyone else breaks the rules.
- Tariffs: As American As Apple Pie
But why can't labour move from the countryside to the city in the gangster-run, thieved prison-state of Amerika? Why can't banks direct investment into amerikan factories? After all they started two World wars to gift themselves the "exorbitant privilege" of being able to print credit (not money) out of thin air.
But instead of a free-market economy that plays by the rules, the amerikan cry-babies go begging for subsidies from the amerikan taxsucker even as these "free traders" admit that Huawei accepted NOTHING from the government to become the World leader in communications equipment. They recently suggested Germany divert investment away from her export sector and the Plaza Accord forced Occupied Germany and Occupied Japan to allow the "worthless paper" USD to depreciate but STILL couldn't fix the deficit which has lasted since 1975.
In fact, Japan is superior to the Great Satan in exporting tuna fish AND in making cars (rather than krudmobiles), computers, TVs, steel and "much more". Amerikans are krap at all of these.
Just look at Boeing (which is heavily subsidised such that the Exim bank has been dubbed "Boeing's bank" and has now successfully collapsed its market with a death-trap), Tesla (which is heavily subsidised and sells at a loss), Gangster Motors (which is heavily subsidised), Ford (which makes krap and appears to be shutting down). The Great Satan has the exports of a third-World country; just agricultural products (heavily subsidised for centuries and now gangster-modified) and shale oil and gas (heavily subsidised and sells at a loss). But even then, Ricardo claimed Japan could still outsource, say TV sets, from the gangster-run, thieved prison-state of Amerika and concentrate on other skills. These "free traders" also dumped rice on Haiti at two-thirds the cost of production until farmers went bankrupt, then ramped up prices such that kids were eating mud-pies (LITERALLY just mud and some vegetable oil). They dumped cotton on India at half the cost. They FORCE Japan to buy rice which is so krap that it's either left to rot or fed to cattle (banned from selling it on). The only reason China imported plastic waste was because someone noticed the TEU containers were returning empty.
The TRUTH is as Douglas Adams said, is because they're a bunch of "useless, bloody loonies". Or, as I witnessed first-hand, one Anglo manager telling his hirelings, that they're a "waste of f**king space". As an Anglo, David Ricardo was in denial about the krappiness of his species. The first time the mail-boat was a day late", they LITERALLY started eating one another. They impose a quota on Asians at yooniversity because they iz too fick for university.
When the Rosbifs can't even cook (and I include the freakin' celebrity TV chefs) then Ricardian quackonomics has no chance. If they produce something as basic as a wooden stool STILL no one will buy it. In terms of worth they have a negative account balance. AND I'M NOT BEING FASCIETIOUS! Just look at daft ideas such as the Eagle low-drag GT, which is nothing more than the ancient and krappy Jaguar E-Type with modern (but still krappy) mechanicals; yours for a WHOPPING £650,000. When they made the original "mini" krudmobile, they were selling those at a loss too. And if the Great Satan tried to export TV sets to Japan, no one would buy them, because they'd be krap. A heavily subsidised dog-turd is still just a dog-turd. The only other option is for the gangster-run, thieved prison-state of Amerika to undergo another Great Depression (and probably cannabalism again too). They even eat Tide pods.