Well, here's a fun URL for you then -- "Reassessing the Theory of Comparative Advantage" by one R.E. Prasch: http://www.econ.tcu.edu/harvey/5443/prasch.pdf I don't agree with everything in the paper, but it's definitely a sobering look at the actual state of the comparative advantage arguments.
It took me about a week to find the minutes to read this and process it, but once I was done, it felt like one of those cases where there was some new and relevant things in it, but the new stuff wasn't relevant and the relevant stuff wasn't new.
To be clear, all I'm saying is "there's is something to comparative advantage worth learning from which seems to bear out the more general 'zero sum bias' idea" and your position seems to be a much stronger (and due to over-reaching, false) claim that comparative advantage is some kind of silly intellectual fashion among pointy headed intellectuals that should never even be mentioned without heaping portions of warning and quibble on the side. As though a little dose would be poisonous rather than give people a taste for learning more, and the meal wouldn't be that nutritious even by the end.
If this is the ground you're defending, and that's the ground I'm defending, I really think you're simply wrong.
The core insight here is not whether free trade among many many people is always pareto efficient for every single member of the economy, but whether 2 individuals can gain via comparative advantage (which obviously they frequently can) and then whether N people can institute free trade among themselves in a way that is Kaldor-Hicks efficient.
If something benefits 20 people a quite a bit, and it benefits them more than it hurts one person who wants to veto all of their ability to trade with each other (rather than trade with the one person), then I say that the one person should look at themselves in the mirror and feel guilty. They should train for a new job (and maybe should be given a kickback from the profits for retraining) and bring on the efficiency! :-)
It is obvious that sellers of anything would prefer that they have no competition in order to get nice fat profit margins. Someone competing with them will be bad for that seller but will almost always be good for the customers. If you give someone the political power to veto economic competition, nearly everyone will... but it would be good for all of us to agree to each refrain from this because in the end, we're all someone's customers :-)
Nearly all of the content in the paper you linked to was quibbles and carping and fear mongering. There was no clear and robust explanation of why comparative advantage was simply a crock of feces that no one should ever even link to.
The paper was full of claims that "it is possible that some union workers might be hurt" without paying any attention to whether other people were reaping enormous benefits in the meantime.
And, yes, it is also worth worrying about whether some country might lose the capacity to feed itself, or to produce tanks, or to fuel tanks, if it engages in trade and ends up having one of those industries shrink to near nonexistence within its borders... I mean, that does and should stimulate a little fear for "what if" scenarios where property rights fall away in at some point and warfare breaks out. People should be honest that someone might "turn predatory" if they end up in a strong military position after economic optimization increases the aggregate levels of wealth...
But the whole point of our back and forth, from the get go, has simply been that comparative advantage is (1) non-obvious, (2) strongly intellectually resisted by some people in a way that might imply some kind of general bias, and (3) worth at least linking to without any kind of worry that its a "mere shibboleth".
Again, if you think this is weak concept that mostly has intellectual fashion to support it, please give me links to similarly fashionable concepts, because, I want to learn about them (and learn to apply them) even if you don't :-P
JenniferRM:
To be clear, all I'm saying is "there's is something to comparative advantage worth learning from which seems to bear out the more general 'zero sum bias' idea" and your position seems to be a much stronger (and due to over-reaching, false) claim that comparative advantage is some kind of silly intellectual fashion among pointy headed intellectuals that should never even be mentioned without heaping portions of warning and quibble on the side.
I actually don't see how these claims are contradictory, and in fact, I'd say they are bo...
This is the first part of a mini-sequence of posts on zero-sum bias and the role that it plays in our world today.
One of the most pernicious of all human biases is zero-sum bias. A situation involving a collection of entities is zero-sum if one entity's gain is another's loss, whereas a situation is positive-sum if the entities involved can each achieve the best possible outcome by cooperating with one another. Zero-sum bias is the tendency to systematically assume that positive-sum situations are zero-sum situations. This bias is arguably the major obstacle to a Pareto-efficient society. As such, it's very important that we work to overcome this bias (both in ourselves and in broader society).
Here I'll place this bias in context and speculate on its origin.
Where this bias comes from
It's always a little risky to engage in speculation about human evolution. We know so little about our ancestral environment that our mental images of it might be totally wrong. Nevertheless, the predictions of evolutionary speculation sometimes agree with empirical results, so it's not to be dismissed entirely. Also, the human mind has an easier time comprehending and remembering information when the information is embedded in a narrative, so that speculative stories can play a useful cognitive role even when wrong.
Anatomically modern humans appear to have emerged 200,000 years ago. In the context of human history, economic growth is a relatively recent discovery, only beginning in earnest several thousand years ago. The idea that it was possible to create wealth was probably foreign to our ancestors. In The Bottom Billion, former director of Development Research at the World bank speculates on the motivation of rebels in the poorest and slowest growing countries in the world who start civil wars (despite the fact that there's a high chance of being killed as a rebel and the fact that civil wars are usually damaging to the countries involved)
Neither the developed world nor the countries that Collier has in mind are genuinely good proxies to our ancestral environment, but like the people in the countries that Collier has in mind, our ancestors lived in contexts in which growth of resources was not happening. In such a context, the way that people acquire more resources for themselves is by taking other people's resources away. The ancient humans who survived and reproduced most successfully were those who had an intuitive sense that one entity's gain of resources can only come at the price of another entity's loss of resources. Iterate this story over thousands of generations of humans and you get modern humans with genetic disposition toward zero-sum thinking. This is where we come from.
For nearly all modern humans, the utility of zero-sum bias has lapsed. We now have very abundant evidence that the pie can grow bigger and that win-win opportunities abound. Both as individuals and as representatives of groups, modern humans have a tendency to fight over existing resources when they could be doing just as well or better by creating new resources that benefit others. Modern humans have an unprecedented opportunity to create a world of lasting prosperity. We should do our best to make the most of this opportunity by overcoming zero-sum bias.