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Your question as stated is badly formed: arguments for free trade aren't based of the supply-demand curve, which attempts to argue that prices converge to an optimal value, but on comparative advantage + specialization. Free trade itself isn't necessarily a bad thing, nor is comparative advantage, it's the distribution of ownership and the proceeds of that surplus that's the problem. Though that's not to say 'you get an advantage of $5' isn't incredibly problematic, because a) the comparison isn't between what you would pay and would you did, but the opportunity cost of what else you could have done with that money, minus the value you get from the product, and b) The phrase 'willingness to pay' is also troubled, because that 'willingness' is not a static value, it's contextual dependent on how much money you already have (ie - wages). So when you think how valuable $10 is to you, you're going to be comparing that to how easy/hard it is to actually get $10, through labor. So if you're rich, you're 'willingness to pay' is obviously going to be a lot higher than it is if you're poor. Other problems with the supply-demand curve stuff taught in econ101 include:
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May 11, 2017 10:55
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| # ¿ May 6, 2024 07:09 |
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