On Tue, 23 May 2000, Max Sawicky wrote:
> [mbs] I don't see that the quote contradicts what I said.
Now I'm confused. This
> > Foreign's lower wage rate is, however, *irrelevant*
> > to the question of whether Home gains from trade.
isn't the opposite of what you said? In the model you summarize, both sides gain even though EPI would presumably denounce Home for exporting cheese jobs.
I of course accept that this model may have simplified away everything of significance. Is that the EPI view? That comparative advantage only works on paper and has nothing to do with the real world? Are you saying that's the mainstream view as well nowadays, so that there is no need to refute it? In that case, could you nudge someone to dig up a cite explaining why it all doesn't work anymore if it ever did? I would be much obliged.
Michael
__________________________________________________________________________ Michael Pollak................New York City..............mpollak at panix.com