« The orthodox, the heretic, and the heterodox | Main | What's different about international trade? »

July 12, 2007

Comments

paine

comparative advantage
ie barter ratio based
cross border trade
in the real world
is a hypogriff

it has never
and can never
operated in a system where credit instruments
indefinitely delay closure to ratio only trading

the reality is trade
operates thru slow adjustment processes
that never complete
themselves
absolute price
disadvantages
lead to slow bleeds
and gaps reduced
far more often
by income clots
and
countering moves'
in relative prices

credit markets can suspend
rapid forex adjustments

its like a boxer
who can hold up his opponent
keep him from a knock down
all the better to unceasingly
beat
the hell out of him

wjd123

Many economist are like Bush, they cherry pick information in order to sell a policy. For instance in the free trade debates economist will emphasize the benefits of comparative advantage while failing to mention the disadvantages of factor-price equalization for well paid workers in developed countries. This is tantamount to putting aside a century of laws and regulations that have been enacted to protect workers, consumers. and the environment in order to pursue a pet project.

In the name of free trade they have set aside a century of our economic morality as easily as Bush set aside a century of civil liberties. They have trusted in the invisible hand to make things right while millions of workers and communities have been destroyed. The have shown as much disregard for the consequences of their actions as Bush has shown for the consequences of his actions in pursuing his war in Iraq. They have used the mantra of "comparative advantage" to justify this destruction of economic morality just as Bush justifies his destruction in Iraq with the mantra "war on terror."

These economist have presided over one of the worst economic blunders in the history of America just as Bush has presided over one of the worst foreign policy blunders. Many of them are just as much in denial over their failures.

We need a policy change in the way we practice free trade in order to protect labor against abuse, along with consumers and our environment--to save our economic morality. Instead, what we get from economist is more talk about the shock and awe of free trade and comparative advantage.

paine

wjd
u need to figure out why its not a blunder ...for certain ...interests

find who benefits and see if they could keep this rig job going
despite
a long run
uncomped loser
jobbler majority
to translate into trade theory jabber-talky
where real producers and
social constructs
like systems of exchange
and its institutions
which allow no producing agents
to appropriate
producing agents value added
ie
who's " schein-factor"
gains
relative revenue share
from the globe's
real productive " factors"

paine

"and
countering moves'
in relative prices"

this needs unpacking

the pure price adjustment assumption
even in the absence of tariffs
has such serious "real "
day after day short falls and incompleteness
that quantity effects
occur

basically all would be well
if edgeworth recontracting could go on
till relative prices
reach
their intrinsic
pareto optimal
exchange ratios
before any real trade occurs
and of course any more production or consumption

wonderland assumption numero uno eh ???

oh ya with
an infinite future to expect
and even without
wild non linearities in production
or a heavy peppering of externalities
pecuniary and real
this recontracting can't end

time goes side ways for ....ever and ever

oz has no trading day that's not
a bill murray
ground hog's day

Per Kurowski

As it could be relevant to a debate on empiricism and modeling, which of course is never an either or but whatever you can lay your hands on and constructively use, let me, as a modest street-walking economist, copy below a brief comment on “research data” that I made at the World Bank last year. Before that though, in the name of transparency, I should perhaps disclose that I am harboring some serious entrepreneurial intentions about a project titled “A guaranteed Ph.D.-free University” (Any investors?)

My comment then: “But to move forward in this and many new areas, we have to be able to fix some huge knowledge gaps that still exist within our Knowledge Bank, gaps which mostly result from either the fact that there are no data to research or that the data are so old and have been squeezed and resqueezed way beyond the last drop. Coming as I do from the private sector, I cannot think of one single proposal that I would dare to present to the board of a corporation that includes data from a decade ago, and not data of this year, this month, today, last hour, or even perhaps right now. We must refuse being tail-wagged by the lack of data and must find new and innovative ways of getting our hands on some accurate, timely, and juicy research data. We also need to be able to monitor the outcome of our policy recommendations much faster, preferably in real time, and all this indicates to me that the Bank faces some very important information-gathering and information-processing challenges. Another thing I would also do, right now, is to require that a panel review the data to be used in any research, ex ante, not only to avoid the waste of resources but also to avoid having to live with dubious research that, ex post, is so much harder to criticize on account of professional solidarity.”

robertdfeinman

I think there are two types of policy proponents (I hesitate to call them liberal vs conservative).

One group flies at 20,000 feet. They see the big picture. The are fond of quoting aggregate figures and averages. They also believe that the forces of the market (or tax policy, or whatever nostrum they are pushing) will work out for the best "eventually".

They are the (perhaps inadvertent) tools of those who benefit from the status quo.

The other group walks among the multitudes. They see the individual injustices in life. They are focused on anecdotal evidence not averages. They want policies put in place that correct immediate problems now, not eventually.

They are the empathetic and usually have something in their own background which has led to this outlook. The fact is that a patrician joins this group rarely, which is why there has only been one FDR in the past 100 years.

Per Kurowski

paine says “basically all would be well - if edgeworth recontracting could go on - till relative prices - reach - their intrinsic - pareto optimal - exchange ratios - before any real trade occurs - and of course any more production or consumption”

By which paine reminds us that the travelling frequently matters much more than the destination.

Ali Sohail (pakistan)

An economist should learn to draw boundaries. Debate is healthy! but it has its limitations. There is only soo much one specific policy debate can achieve. We all understand the draw backs of each side of the story interms of policy of trade.
We have exhausted our skilled resource heads. The time has come to stop pondering on the degree of the dilema each policy stand has!
In my view, rather than getting lost in the policy debate. A broader stance by each regime should rather be based on which segment of the society within each country each government wants to support, what would be its balancing act towards the relatively suffering segment of its society. (that is to give a politically viable directive)
In specific for the developing world, the goal and policy stand supported by each regime should be drawn in line with its progression not solely on economic growth or interms of mode of strategy to industralization but rather a relative directive towards economic income subsistence levels, which should be modified i.e it should allows for a decent meal 3 times day, a few glasses on wine, 5-6 unbranded clothing wear to work through a month, a shelter with basic cooking facilites, basic health, maybe not a cure for cancer for all.. but basic atleast, good schooling! In all.. basic living standards!
Implying that a human being can have a decent life, decent measured in terms of a good evevning out, a happy, hard fun loving day and something to fall back on, freedom of thought, practice and right! that should be good enough. Otherwise, the human instinct of inequality and always wanting more, wanting to be the power figure, well sir thats human nature and thats something each indivdual needs to work on with on an personal level rather than turning the head and making our personal aspirations global or government level issues.

In other words, meaning, that the income levels should not only be looked interms of the by-product of industralisation but rather as a stand pre and post policy.
In addition, i feel income inequality is a bad indicator for all times to come. Inequality is inevitable and a by-product of the capitalistic system we live in, which regardless of how fancy we may want to make it, by giving it new notions of modern and new mode capitalism, would always remain capitalism in its pure jist.


A point to note: In response to the post by wjd123 based on American foreign policy: History tells us Egoisitic decision or an egoisitic lifestyle whether it be on a individual, national or international level will always have an eventual alienating outcome.

paine

per
"travelling frequently matters much more than the destination."

especially
when we can never....arrive

paine

ali s :

"A broader stance by each regime should rather be based on which segment of the society within each country each government wants to support"

i suggest this is what goes down allows already
24/7 /365

our task
as outsiders
keep clear
on which side
the present
or candidate regime is on

and only by looking
at its actions
not its honey suckle words

especially not
its self serving dogmas
usually served up
disguised as
pseudo scientific rationalizations

Per Kurowski

Paine says: “our task - as outsiders - keep clear - on which side - the present - or candidate regime is on - and only by looking - at its actions - not its honey suckle words - especially not - its self serving dogmas - usually served up - disguised as - pseudo scientific rationalizations”

Could not agree with him more. That way the world would have long time ago already discovered that Hugo Chavez in Venezuela, after almost nine years in government, is by selling the gas locally at less than 10 us cents per gallon managing to transfer about 10% of GDP from the poorest of the poor to those who drive cars; something which obviously cannot have anything to do with any socialism, of any century, but seems more to be a model for an “Asocialism of the XXI century”… no matter what the honey suckle words or the beating at Bush could mean.

Per Kurowski

Ali Sohail argues for measuring how countries allow their people to have “a decent meal 3 times day, a few glasses on wine, 5-6 unbranded clothing wear to work through a month, a shelter with basic cooking facilities, basic health, maybe not a cure for cancer for all.. but basic at least, good schooling! In all.. basic living standards!”

What a dream measure in terms that it will most probably remain a dream since it would measure in a too concrete manner the politician’s delivery on the promises they made. By the way to the above measure I would only add the need for a relative sense of safety.

rolex watches

People usually say :"Seeing is believing." http://www.tt88times.com
Each attempt has a corresponding gain, in part or obvious, or vague. At least we have the kind of satisfaction After I bought this watch ,in a sense,it means a great deal to me. http://www.fashionhairfu.com

jordan shoes

People usually say :"Seeing is believing." http://jordanmass.com Each attempt has a orresponding gain, in part or obvious, or vague. At least we have the kind of satisfaction After I bought this watch ,in a sense,it means a great deal to me. http://boon-shoes.com

ugg classic knit

People usually say :"Seeing is believing." http://jordanmass.com Each attempt has a orresponding gain, in part or obvious, or vague. At least we have the kind of satisfaction After I bought nfl jersey ,in a sense,it means a great deal to me. http://www.fansshirt.com

nfl jersey

People usually say :"Seeing is believing." http://jordanmass.com Each attempt has a orresponding gain, in part or obvious, or vague. At least we have the kind of satisfaction After I bought this watch ,in a sense,it means a great deal to me. http://boon-shoes.com

Nike Air Jordan

The good news, thank you!

authentic jordans

I think this is a great post. One thing that I find the most helpful is number five. Sometimes when I write, I just let the flow of the words and information come out so much that I loose the purpose. It’s only after editing when I realize what I’ve done. There’s defiantly a lot of great tips here I’m going to try to be more aware of.

jordan shoes

It's good to see this information in your post, i was looking the same but there was not any proper resource, than now i have the link which i was looking for my research.

gucci outlet

Thanks for this post. You know, I'd really appreciate a post where you suggested news sources that you consider good ones.

الايفون

i never knew this before Dan this is very good

düzce haber

The good news, thank you...

oem usb

[url=http://www.usb-disk.com]wholesale flash drives [/url]weche zkthug et ben95 sa tourne jusqua bordeaux walah les frere vous nikez tou yes we can elle est barbare gonesse gang aiii enfait gonesse c la ville ou la cité ??
[url=http://www.onlineusb.net]wholesale usb [/url]
[url=http://www.topusbdrive.com]wholesale usb [/url]

Account Deleted

raf

Thanks for article.

Account Deleted

Raf
raf

Thanks ...

Account Deleted

Raf Sistemleri
raf

Good Work !!! Old man ...

Account Deleted

Hi! good information. I like to read about latest topics related to economy. Your blog is very exciting.

Forex brokers review

Account Deleted

Many places and centers offer business and trade promotions to both buyers and supplier.What about the differences in skill intensities across industries? The job losses in the relatively unskilled-labor intensive battery industry should have little effect on the relatively skilled-labor intensive machinery
sexshop
sexyshop
sexshop online

Teslapow

i am incredibly happy that i uncover the webside in the English review room this noon . Homemade Xylophone

Account Deleted

This is good site to spent time on .I just stumbled upon your informative blog and wanted to say that I have really enjoyed reading your very well written blog posts. I will be your frequent visitor, that's for sure.


organic seo service

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Your Information

(Name is required. Email address will not be displayed with the comment.)