The Free Trade Myth
The Betrayal of American Prosperity by Clyde Prestowitz - Reviewed.
As a product of Temple Univ. Business School I was indoctrinated into the holy gospel of free market economics. Then I was sent out into the world to spread the message. We studied various economic models, like The Theory of Comparative Advantage.
The Theory of Comparative Advantage developed by the 19th century English economist David Ricardo, works likes this: In the 19th century, there is England and Portugal. Portugal makes good wine, having an ideal climate for growing grapes. England produces good textiles. England produces excellent wool, and has advanced manufacturing. If you have free trade between England and Portugal, getting rid of all tariffs, Portugal will sell England excellent wine at a good price, and England will sell Portugal textiles. Portugal has a comparative advantage in wine, and England in textiles. So it makes little sense for England to produce wine or Portugal textiles. Both countries will prosper from the free trade.
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