By Jean-Pierre Petit
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Extra resources for Les Aventures d'Anselme Lanturlu - L' Economicon
What do we know about people and our world? What basic propositions would virtually no one dispute? We would all agree on at least two principles. First, people act in their own self-interest. Second, our world has unlimited wants and limited resources. " Some 60 years ago, in his book Capitalism, Socialism, and Democracy, the Austrian economist Joseph Schumpeter wrote, "Can capitalism survive? No, I do not think it can .... [Capitalism's] very success undermines the social institutions which protect it, and 'ineVitably' creates conditions in which it will not be able to live ....
Different climates, different natural resources, different skills and different proportions of the factors of production are some examples. Isn't it ironic that while the advantages of trade are based on differences, many critics argue that free trade is acceptable to them only if those differences are ftrst removed or neutralized? Adam Smith actually understated the case for free trade. He followed the commonsense notion that a country should produce what it can produce cheaper and trade for what people in other countries can produce cheaper.
When you reduce barriers, goods flow more freely, inflation processes are reduced, and you have a better chance of an expanding pie in noninflationary terms. There are not many things the federal government can do anymore in this country. Now we need to use the powers of this government to expand our frontiers. Otherwise, we cannot expand jobs. That is the one power we still have, and we should use it aggressively. You are saying that thefree trade agreement can restore economic growth in the United States.
Les Aventures d'Anselme Lanturlu - L' Economicon by Jean-Pierre Petit