Modern Mercantilism

Just wanted to record a thought.

The idea of free trade as a Good Thing seems to be mainly based on the concept of Comparative Advantage. But for this to really work requires restrictions on the flow of capital.

With minor exceptions like the Russian and Saudi stock exchanges (which bar foreign investment, though they won’t for much longer), capital markets are among the most open markets in the world.

Free trade just benefits holders of capital.

2 Responses to “Modern Mercantilism”

  1. Steph Says:

    i finally started a blog stephstew.blogspot.com check it out.
    also we need to bike ride

  2. Tom Says:

    yay a new blog! i can’t comment on it though :/