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Garbled economic theory.(LETTERS)
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The Washington Times
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April 9, 2008
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Copyright informationCOPYRIGHT 2008 The Washington Times LLC. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: THE WASHINGTON TIMES
Not only does William Hawkins misunderstand the principle of comparative advantage, but he incorrectly suggests that it is the lone pillar supporting the case for free trade ("Economic theory ignores reality," Letters, Monday).
Adam Smith didn't know about comparative advantage when he wrote "The Wealth of Nations," but his case for free trade remains powerful. Smith explained that free trade expands the size of markets, making possible capital investments and greater specialization of workers.
These investments, along with the improved skills that highly specialized workers learn, increase output and wages. Confining economic ...
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