FauxPolitik

Wednesday, August 20, 2003

Outsourcing: Brad DeLong has a long but well worth reading post on outsourcing, globalism, foreign trade and such. I get a little charged up when someone starts talking about Say's Law and David Ricardo, but I think it is the single most important economic principle that we should be teaching schoolchildren. That economics is not zero-sum, country B's economic growth does not come at the expense of country A's, at least not at the macroeconomic level (and trying to control microeconomic indicators is a horrible idea - do you want Tom Delay or Ted Kennedy doing your grocery shopping and haggling for you at the Honda dealer? You'll get rooked). Instead it's the gas in the tank (or hydrogen in the fuel cell) of the economic growth engine. And we don't even need to bore the little buggers with The Wealth of Nations, either, since P.J. O'Rourke has a perfectly good crib sheet.

Props to Instapundi.

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