The Logic of Trade

Washington Times ^ | 8/18/03 | Daniel T. Griswold

[MonroeDNA]

Whenever an expert touts a totally new theory, invention or miracle medicine, a healthy dose of skepticism is called for. The recent writings of Paul Craig Roberts fit the mold. He claims that two centuries of economic thought in support of free trade, dating back to Adam Smith and David Ricardo, have been overturned by new developments and his own unique insights. But reality is more straightforward, and far less ominous, than he depicts.

[dogbyte12]

A libertarian economist talking about theoretical solutions vs reality has the world's greatest pair of brass ones.

[MonroeDNA]

This out to irritate the unionists.

[MonroeDNA]

Can't argue the facts, so shoot the messanger?

*snort*

[Ben Ficklin]

The Facts About Modern Manufacturing

[MonroeDNA]

Free Trade FAQ's

[theFIRMbss]

>"...most capital leaving the United States, including manufacturing investment, flows to other high-wage countries, such as Canada and Europe."

This writer is nuts.
EVERYTHING we buy is made
in China. Get real.

[MonroeDNA]

Yes, and all software is written in India.

[MonroeDNA]

Over here....

[.cnI redruM]

I'd prefer software written in India.

1) The mathematics would actually be correct. As oppossed to the NASA pukes who mixed British System Units with Metric Units and fried $millions of high-tech tax fodder in the Martian atmosphere.

2) The online help and manuals would be written in literate English rather than in Yospeak.

3) They'd deliver the entire product rather than just delivering some of the product and a ReadMe telling you when the patch was due in.

[Tauzero]

"He claims that two centuries of economic thought in support of free trade, dating back to Adam Smith and David Ricardo, have been overturned by new developments and his own unique insights."

The author either hasn't read Adam Smith himself or is being dishonest and relying on the ignorance of readers.

Either way, I stopped reading after that.

[Tauzero]

O.K. I read a little further.

"His theory utterly fails to explain why most capital leaving the United States, including manufacturing investment, flows to other high-wage countries, such as Canada and Europe."

If it cost nothing to set up shop in India then, by definition, zero US capital investment would flow to India.

[harpseal]

He claims that two centuries of economic thought in support of free trade, dating back to Adam Smith and David Ricardo, have been overturned by new developments and his own unique insights. But reality is more straightforward, and far less ominous, than he depicts.

Now Paul Craig Roberts actually read Adam Smith because smit saw four justificatyion for tariffs Defense, promotion of industry, retailiation(or revenge), and cracking open markets. David Riccardo actualy stated that absolute advantage which is inordinately low wages should have tariifs imnposed on investments there because teh "absolute advantage" was no a natural advantage. A couple of facts to start. I shall post more presently.

[harpseal]

A Free trade hit piece

On or off this list let me know.

[harpseal]

The author either hasn't read Adam Smith himself or is being dishonest and relying on the ignorance of readers.

or both. after this one must check eevry fact alleged a tedious proposition but since those who advocate are current open acces for imports without any access for exports are known for having a very casualk attitude with teh truth.

[harpseal]

Now why on earth would anbody refer to teh Cato Institute for Facts on trade?

[MonroeDNA]

Would you prefer Robert Reich's pro-union, anti-capitalism organization, the Economic Policy Institute?

[meadsjn]

The recent writings of Paul Craig Roberts fit the mold. He claims that two centuries of economic thought in support of free trade, dating back to Adam Smith and David Ricardo, have been overturned by new developments and his own unique insights. But reality is more straightforward, and far less ominous, than he depicts.

When the writer starts off with such a blatant untruth, a healthy dose of skepticism is called for regarding the rest of his article.

This country started with tariffs on imports as the major tax base. Protectionism for the benefit of economic stability and national security was the rule rather than the exception, until the last few decades of treason by elected officials of both parties.

One of the few Constitutional duties of the federal government is to negotiate international trade, to the best interests of their employers, the taxpayers and voters of the United States.

It is curious that police-state neo-cons are suddenly using libertarian sources to support their invalid arguments.

[MonroeDNA]

"A Free trade hit piece "

Ummmm....not a hit piece on Free Trade. It is pro-Free Trade.

[harpseal]

Would you prefer Robert Reich's pro-union, anti-capitalism organization, the Economic Policy Institute?

Actualy I would prefer teh Department of Commerce but putting the choice between teh two you mentioned is like giving a choice for news between radio North Korea and and radio Havana. The problem with teh Cato institure is tehy j=knowingly misstae facts because tehy thinks it bolsters their case for teh ridicuslously mis name trdae system we have now which is anything but Free. Now the Choice of 2001 for teh study date and teh study chosenis interesting Two events from 2001 come to mind. the first is the Orion Chinses jet icnident any one remember that ?The second is there seems to be something about an event on September 11, 2001 that woudl also artificially depress investment in nations outside the USA that were percieved as at risk. So the date chosen means we have unrepresentative data and i have not even discussed the onset of the recession and teh fact the the big boom in IT outsourcing got going in 2002 and 2003.

According to a study by Deloitte and Touche Consulting, 94 percent of outward U.S. foreign direct manufacturing investment in 2001 flowed to other rich countries.

Now the study inculudes investment in existing compainies in Europe and Canada Thus if an American drug company were to buy a Swiss Company that had existing planst in teh USA that would still be included in teh offshoring of capital for this study so as such reference to this study which is not bsed on just new plant and equipment is to put it mildly ridculous.

This is just an example of the article's bias and lying by using numbers that do not relate to the specific issue. It is typical for both the Cato institute and many libertarian economists.