Thursday, March 31, 2011

Milton Friedman on Steel, Tariffs, and Trade


HT: Ron H.

4 Comments:

At 3/31/2011 12:02 PM, Blogger morganovich said...

friedman leaves an important issue out of his answer:

if US consumers pay less for steel, they have more money to spend at other US businesses. this means that the jobs lost in steel tend to be made up in other industries.

it's not just US dollars "finding their way home" it is also the consumer surplus created by free trade that drives additional real gains to us consumers and businesses.

 
At 3/31/2011 1:58 PM, Blogger Buddy R Pacifico said...

U.S. dollars "finding their way home" will be a gigantic economic event, unless their owners don't return much of them home.

 
At 3/31/2011 5:38 PM, Blogger morganovich said...

buddy-

did you watch the video?

wouldn't you trade green pieces of paper for DVD players all day long and be thankful?

if i write you an IOU for $20 and you give me dinner, isn't the best think i could hope for that you never cash it in?

 
At 3/31/2011 6:41 PM, Blogger Buddy R Pacifico said...

morganovich, thank you for patronising the Diner.

That 20 dollars ("worthless IOUs") will enable the purchase of:

Five dollars of zero trans-fat oil;
five dollars of labor;
five dollars for government majority owners dividend; and
five dollars of your interest bearing, government guaranteed bonds.

BTW, that business software you produce works beautifully, but it can't be depreciated because it was a free download.(<:

 

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