Need just one more reason to reject Ricardo's "free trade" fallacy?
How about this one:
...[Ricardo's] argument might sound convincing, until you ask a simple question:
“So how do you turn a wine press into a spinning jenny?”. Answer? You
Ricardo’s model assumed that you could produce wine or cloth with only
labour, but of course you can’t. You need machines as well, and
machinery is specific to each industry. The essential machinery for
making wine can’t be used to make anything else, if its use becomes
unprofitable. It is either scrapped, sold at a large loss, or shipped
overseas. Ditto a spinning jenny, or a steel mill: if making steel
becomes unprofitable, the capital involved in its production is
effectively destroyed....Forbes quoted at VoxPopuli
Plenty more at the link. As to 'destroyed,' look no further than Janesville's GM plant. Or Kenosha's AMC/Chrysler plant(s). Not to mention the tens of thousands of lives.
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