|OK, Sam Erica, I will take the bait. What is "balance of payments"? |
As every voluntary trade brings profit to both parties, are you arguing that they should experience the same profit, lest one benefit at the expense of the other?
Kyrgystan exports tomatoes. Italy buys them. But K does not buy the same value in Fiats and Lamborghinis. Does it matter? The Italians are better off with Kyrgyz tomatoes even if all the Italian euros in Kstan are spent on American blue jeans.
SE: "You can’t have an economy that produces nothing but services.
Sure you can! In essence all "goods" are "services" because all men are created equal: what one person can produce, so can another person.
Granted that raw materials may be unequally distributed on the planet: Russia has the platinum America wants. China has a abundance of "lanthanides" or "rare earths."
If gold is money, what explains why South Africa is not Switzerland.
Sam, as I said, I'm open for business. I only stated above the well-known case for free trade. Nothing new there. But you disagree. And you are not stupid. In fact, you are pretty smart. So, if you have an insight here, please share it.
(Edited by Michael E. Marotta on 2/15, 8:43am)