Invisible Man
Member
- Joined
- Dec 9, 2019
- Messages
- 4,367
The idea of comparative advantage is that each country makes stuff that they are good at and then you trade and everyone is better off. But that's not what's happening in general in the US. Because of our bloated government we're at a disadvantage making just about everything.
I doubt that.
However, more importantly, one country could be at a disadvantage of making everything, but it would still have comparative advantages in making some things in comparison to others, and it would still benefit by focusing on those things (even if it's worse at making them than every other country in the world) and trade for the things that it's even worse at making than those. Comparative advantage doesn't mean better at making something than another country is.