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Ricardo's theory of free trade is mathematically sound and a valid concept for increasing wealth of each trading partner. On economy level, if two countries each produce two items, but both could produce more of one, both economies will benefit by each country producing one and trading what it produces for what the other country produces. However, the factor that creates problems with the theory is the human factor.
What tends to happen is that a few people gain control over what is produced, and retain the created additional wealth for themselves. The human factor not only creates problems in free trade theory, it also causes problems in socialist, communist, and capitalist theories. While the human natures of greed, lust, and vanity may be faults of the few who gain power, the human natures of envy, gluttony, and sloth are faults of the masses. Ultimately, vengeance becomes faults of both the few and the masses.
When America was an agricultural society, it was good business to buy slaves to work the fields. As America became an industrial society, it was good business to pay women less than men. Now that America is an information society, it is good business to outsource jobs to save labor costs. The common root may appear to be corporate greed, but another common root is consumer demand for the lowest price.
If merchants were to stock American products alongside similar, lower-priced, imported products, merely to support American labor, those American made products would likely need dusting more often than restocking. On the other hand, if consumers paid the higher prices for American made products, merchants would quickly clear the imports from the shelves to make room for that which consumers demand. Of course, this does not happen because consumers consider it good business to save money, giving less thought to the consequences than those who bought slaves, paid women less than men, and, today, outsource jobs to foreign markets.
What it means is our entire economy is being outsourced because we, as consumers, demand it.
Wealth in an economy is created by money flowing throughout it. The flow of money represents demand, and supply always increases and decreases to meet demand. Money in America is now flowing from consumers into huge corporations whose prices local merchants cannot match, and then to foreign markets to purchase more of that which consumers demand.
Anyone who has been disgruntled dealing with outsourced customer service has himself or herself
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