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Thread: The Beauty of Specialization

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    The Beauty of Specialization

    Here's a video that illustrates the beauty of trade.

    "So little pains do the vulgar take in the investigation of truth, accepting readily the first story that comes to hand." Thucydides 1.20.3

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    Armchair Worrier Senior Contributor bolo121's Avatar
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    Nifty Stuff.
    Modern civilization is such a delicate thing.
    So many different processes and specializations are needed even to make a toaster.
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    note that specialization requires a certain population base. it probably takes a population of around 250-300 million people to have one microchip plant, for instance. we don't have all that many and given worldwide trade we're working off a population base of 6 billion.
    There is a cult of ignorance in the United States, and there has always been. The strain of anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means that "My ignorance is just as good as your knowledge."- Isaac Asimov

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    We can probably build an AK in 19th Cent. though. Maybe.
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    On the flipside, each nation who participates in this has the threat of increased economic vulnerability.

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    Quote Originally Posted by Lonekommie View Post
    On the flipside, each nation who participates in this has the threat of increased economic vulnerability.
    So it's better to live poor?
    "So little pains do the vulgar take in the investigation of truth, accepting readily the first story that comes to hand." Thucydides 1.20.3

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    Turbanator Senior Contributor Double Edge's Avatar
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    Quote Originally Posted by Lonekommie View Post
    On the flipside, each nation who participates in this has the threat of increased economic vulnerability.
    So, if configured or balanced properly then don't all those threats cancel themselves out ?

    Do see the idea at play here, it first started out with cities alone, then moved to the country level, then within blocs and now its going international. Building links or bridges if you will, social, cultural, economical and even defense, all over the world.
    Last edited by Double Edge; 26 Jan 11, at 21:20.

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    Quote Originally Posted by Lonekommie View Post
    On the flipside, each nation who participates in this has the threat of increased economic vulnerability.
    You know, I should buy my own generator. I don't want to rely on the grid. That makes me vulnerable.

    I should have my own cows so I can make my own butter and cheese. Don't want to rely on the market due to price volatility.

    I should have my own silicon fab. I don't want to rely on the market for my computer.
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    Technology has been the servant of the rich nations only, why is this inequality.......this has been the reason why the unrest has risen beyond the control of nay nation.WE as human being have equal right to the technology as every one o us has contributed in this knowledge thats developed to the current stage, then why the fruit is only for the rich and cruel nations......why.......

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    Quote Originally Posted by Rodolfo View Post
    Technology has been the servant of the rich nations only, why is this inequality.......this has been the reason why the unrest has risen beyond the control of nay nation.WE as human being have equal right to the technology as every one o us has contributed in this knowledge thats developed to the current stage, then why the fruit is only for the rich and cruel nations......why.......
    Because we can afford it.
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    Shek Reply

    Maybe you might expound a bit on the notion of comparative advantage and how that plays into our connected global economy? That's what I'm sort of drawing from the presentation.
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    WE as human being have equal right to the technology as every one o us has contributed in this knowledge thats developed to the current stage,
    It's a nice sentiment, but the reality is different. A cashew farmer in Belize has contributed cashews, while an engineering team at Intel created modern microprocessors. The distribution of cashews and pentium chips is based upon free world markets. This isn't some nirvana where every human being on earth gets all sorts of cool stuff just because they have human DNA.

    So yes, the cashew farmer has the right in the sense that if he can afford a PC, as Gunnut mentioned, he can get one.

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    Quote Originally Posted by Rodolfo View Post
    Technology has been the servant of the rich nations only, why is this inequality.......this has been the reason why the unrest has risen beyond the control of nay nation.WE as human being have equal right to the technology as every one o us has contributed in this knowledge thats developed to the current stage, then why the fruit is only for the rich and cruel nations......why.......
    I appreciate the personal touch you give to your spam.
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    Quote Originally Posted by S-2 View Post
    Maybe you might expound a bit on the notion of comparative advantage and how that plays into our connected global economy? That's what I'm sort of drawing from the presentation.
    Steve,

    More to follow later, but here are two articles that I'll refer to in a later post:

    http://www.worldaffairsboard.com/pac...oblems-wi.html
    http://www.worldaffairsboard.com/att...07-varian-.pdf
    "So little pains do the vulgar take in the investigation of truth, accepting readily the first story that comes to hand." Thucydides 1.20.3

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    "More to follow later, but here are two articles that I'll refer to in a later post:"

    Fascinating. The implications, of course, are astounding as issues like trade deficits (real or imagined) have profoundly broad policy impact. To use the Iphone as example and determine true costs by nation is immensely complex as the number of components must be evaluated for material/labor costs at each manufacturing station along the production pathway with profits separated-some of which are retained earnings and others re-invested somewhere within each corporate structure.

    The level of transparency necessary, therefore, to generate truely accurate trade data is also a factor.

    Every reason to believe we've no clue who's trading what to whom and at what actual cost.
    "This aggression will not stand, man!" Jeff Lebowski
    "The only true currency in this bankrupt world is what you share with someone else when you're uncool." Lester Bangs

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