Message:

<p>[QUOTE=&quot;Cloudsweeper99, post: 1491648, member: 3011&quot;]I&#039;m not a defender of China.&nbsp; But we were discussing what might happen in the absence of any government regulation or assistance - to let capitalism &quot;run wild.&quot; In a sense, China is following the path of the old British Empire by importing raw materials and exporting finished goods with higher profit margins.&nbsp; Transportation costs are always a factor, but when the average worker in China makes 1/10 or less the salary and benefits of a worker in the West, it overcomes a lot of fuel cost.&nbsp; The 2/3 of the population you mentioned is the factor that invalidates comparative advantage.&nbsp; There is no need for China to specialize when they can just pull reserves off the bench, so to speak, and dominate every manufacturing industry.&nbsp; Ricardo&#039;s theory didn&#039;t have to take this into account.</p><p><br /></p><p>Please keep in mind that most if this is hypothetical since there will always be government regulation, welfare and trade barriers.&nbsp; I just wanted to demonstrate that unfettered capitalism, were such a thing to exist, won&#039;t make life better in the West, it will make it worse.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in