[lbo-talk] On Tuesday, economic populism had a good night

Julio Huato juliohuato at gmail.com
Fri Nov 10 12:16:22 PST 2006


Doug wrote:


> Because the rise in imports is only partly
> explained by trade agreements; it has a lot
> more to do with declining transportation
> and communications costs, and the spread
> of technology to low-wage countries.

Good point. Then the other side will reply -- "How come those lower costs don't make our exports, jobs, and wages rise just as fast?" And the answer is that lower transport and communication costs mean less friction slowing down the effects of arbitraging gaping world inequality.



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