Post Atg3fyfvC5XdIelWd6 by Arianity@mastodon.social
 (DIR) More posts by Arianity@mastodon.social
 (DIR) Post #AtdRXKUrQmSUu76sYi by interfluidity@zirk.us
       2025-05-01T01:50:36Z
       
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       [new draft post] Overall but not bilateral balance https://drafts.interfluidity.com/2025/04/30/overall-but-not-bilateral-balance/index.html
       
 (DIR) Post #AteNDK9AogV9Mw8B60 by ike@pkm.social
       2025-05-01T12:36:50Z
       
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       @interfluidity This might be a dumb question.... but isnt what you describe Comparative Advantage? https://en.wikipedia.org/wiki/Comparative_advantage
       
 (DIR) Post #AteNRwzHCoVZstTa5o by interfluidity@zirk.us
       2025-05-01T12:39:31Z
       
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       @ike yes! Ricardo’s comparative advantage presumes balanced trade, but not necessarily bilaterally balanced. ( i’m explicit about that in this one https://drafts.interfluidity.com/2025/04/27/how-can-taxing-foreign-investors-balance-trade/index.html )
       
 (DIR) Post #AteO3wUvTS7nN1Obse by ike@pkm.social
       2025-05-01T12:46:22Z
       
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       @interfluidity ok thx! Im not familiar enough to know if/what the different flavors of comparative are.
       
 (DIR) Post #AtePtcDwCIKlVJeYuO by interfluidity@zirk.us
       2025-05-01T13:06:56Z
       
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       @ike Ricardo’s the (formal) originator of the idea. There’ve been successors and elaborations, but he’s the guy it’s attributed to.
       
 (DIR) Post #Atg3fyfvC5XdIelWd6 by Arianity@mastodon.social
       2025-05-02T08:07:20Z
       
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       @interfluidity Would this interfere with some of the goals in trade balance? In particular national security, learning by doing, (and maybe golden handcuffs)?In that example, Industria is still strategically vulnerable to being cut off from ore. Similarly, Ironia and Oceania are vulnerable to not having their manufactured tanks etc cut off.Ironia/Oceania don't get the advantage of learning by doing when it comes to manufacturing(I am not so sure about the golden handcuffs constraints)
       
 (DIR) Post #AtgRFNzxKhf2v3zPlI by interfluidity@zirk.us
       2025-05-02T12:31:29Z
       
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       @Arianity yes. balance only addresses balance! diversity/resilience of supply of key goods requires distinct policy.however, balance helps with that, because you don’t have to do endless rounds of trade arguments about “nontariff barriers” or whatever for your industrial policy. you export as much value as you import. your policy can affect what you import + export, but not mercantilistically “cheat” to win net exports. so that buys countries freedom for their industrial policy
       
 (DIR) Post #AtgRIP0S2eAYukewzo by interfluidity@zirk.us
       2025-05-02T12:32:02Z
       
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       @Arianity a bit more on that here https://drafts.interfluidity.com/2025/04/20/keynesian-compromise/index.html
       
 (DIR) Post #AtgUvol6WoBhwMy2Qi by interfluidity@zirk.us
       2025-05-02T13:12:47Z
       
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       @Arianity (same with learning by doing, etc. if Oceana wants to get into manufacturing, it can subsidize its own industry. if that cuts into Industria’s boat sales, it may also cut into Oceania fish sales. so Oceania may want to find ways of shifting into manufacturing that are complementary rather than substitute for what Industria produces. if the concern is resilience, then it will want to subsidize substitutes, but maybe it increases imports of ore to maintain fish exports.)