The Real Adam Smith

[Kidlicious]

Also, what Arrian said. You show Adam Smith the world today, he'd take about five years just catching up on enough science to fathom the internet. Also, I'm not sure anyone from his era would be terribly keen on the women voting thing.

This matters because if Adam Smith was a strict egalitarian than all conservative thought is bastardization. Who is their father then?

[Ben Kenobi]

I'm not a communist and I never thought Adam Smith was the devil.

Were a commie. Past tense.

As for an intelligent conversation, my ground has pretty much been covered by the others, so.

Go read Wealth of Nations.

[Kidlicious]

As for an intelligent conversation, my ground has pretty much been covered by the others, so.

No, I'm sure that Pattycakes hasn't even begun to cover what you think about Adam Smith.

Go read Wealth of Nations.

Why don't you show us how you've read it?

[Ben Kenobi]

No, I'm sure that Pattycakes hasn't even begun to cover what you think about Adam Smith.

What do I think of Adam Smith?

Why don't you show us how you've read it?

It is dry, but I quite liked it. My favourite portion is that pin making section. Diversification is a very important part of economics. And the section on how different countries should produce the things that they are best at producing and then trade for everything else. Plus the idea that trade is beneficial to both parties.

[MrFun]

Go read Wealth of Nations.

HE ALREADY READ THE DAMN BOOK!!

[Ben Kenobi]

Where does Kid claim he has? He's not said so.

[Kidlicious]

It is dry, but I quite liked liked it. My favourite portion is that pin making section. Diversification is a very important part of economics.

Diversification? That sounds like personal investment. Do you even know what the purpose of his observation of the pin factory was?

And the section on how different countries should produce the things that they are best at producing and then trade for everything else. Plus the idea that trade is beneficial to both parties.

You got this wrong. Smith's theory is absolute advantage. If a nation doesn't have an absolute advantage in the production of anything it shouldn't trade anything.

[Ben Kenobi]

Diversification? That sounds like personal investment. Do you even know what the purpose of his observation of the pin factory was?

That division of labour be the most efficient way of distributing production. This is diversification, any economically advanced economy will try to diversify their workload so that productivity will increase.

As for the second part, isn't that what absolute advantage is? The ability to sell better things at a lower price than anyone else in the world?

[Kidlicious]

That division of labour be the most efficient way of distributing production. This is diversification, any economically advanced economy will try to diversify their workload so that productivity will increase.

Yeah, that's what I thought you meant. No, you're wrong. Expanding the division of labor means specializing, not diversifying.

As for the second part, isn't that what absolute advantage is? The ability to sell better things at a lower price than anyone else in the world?

Yes, but according to the theory countries don't get gains just because they trade, which is what you said.

[Ben Kenobi]

Yeah, that's what I thought you meant. No, you're wrong. Expanding the division of labor means specializing, not diversifying.

It means diversifying, because that's what happens to the surplus labour as a result of increased productivity. You can afford to have people just producing services or whatnot, because you are so much more capable of producing the basics.

Yes, but according to the theory countries don't get gains just because they trade, which is what you said.

Yes, they do. Remember, Smith is attacking Mercantilism. Trade is inherently beneficial for both parties, even if it is more beneficial for one over the other.

Didn't we have this argument years ago, or was this someone else?

[MrFun]

MrFun is correct.

I take you missed this post then, BK.

[Drake Tungsten]

Who is their father then?

Edmund Burke?

It would take zombie Washington years just to learn about all the stuff that's happened since he died.

I'd only give him a few months before he flipped out about what we had done to **** up the republic and went on a rampage...

[Ben Kenobi]

Mr. Fun has said a bunch of things.

So you've read the book? My apologies then.

[MrFun]

So you've read the book? My apologies then.

[Kidlicious]

It means diversifying, because that's what happens to the surplus labour as a result of increased productivity. You can afford to have people just producing services or whatnot, because you are so much more capable of producing the basics.

Using the word diversify makes you look ignorant. The word people use is specialize.

Yes, they do. Remember, Smith is attacking Mercantilism. Trade is inherently beneficial for both parties, even if it is more beneficial for one over the other.

Again you sound ignorant, because he doesn't say that nations always benefit from trade. He says that nations benefit from trade under certain conditions.

If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with somepar of the produce of our own industry, employed in a way in which we have some advantage

So it's not the modern free trade argument.

The point is that you aren't able to tell people to read the book.