“Trade Is Made of Win,” Part 2: Cooperation

Prof. Art Carden examines how trade creates wealth, by allowing people working together to produce more than they could individually. Using a simple two-person example, he shows another example of how cooperation during production benefits everyone.

15 Comments

  1. Alex Moscoso

    I agree completely, but I think some people may criticize the accuracy of the production figures. I can create different productions numbers to argue the point, mathematically, that trade will make both or one party lose. Therefore, real world examples or production figures (with the great animation) should be used.

  2. Alex Moscoso

    Also, there should be a link to the next part. Instead of me having to go back to the playlist. 🙂

  3. Matt Wavle

    I like seeing how cooperation is better not just for both Lou and Fritz, but also for consumers as well.

  4. Jeremy Harding

    That’s a good sentiment, but I think applying real world figure potentials to models designed to represent constructs would be counterproductive. Three reasons:

    1) If people cared to learn about the real world incidents of trade-induced positive trends, they might do research themselves instead of watching a presentation. I think the point of this kind of thing is to catch new interest, not keep existing interests.
    2) The plethora of real world examples that could be used for either side of an issue would overwhelm an audience.
    3) In a discussion of philosophy, the epistemology of a subject should always be brought out first, before the praxeology is discussed. Otherwise, people will question the philosophical basis for the connection of any action to positive results.
    Plus, LearnLiberty has plenty more where this came from, as I’m sure you know. I think they want people to watch more than one video to get a grasp on a concept 🙂
  5. Nathanael Stover

    Alex, I am wondering if you could show me an example where one or both parties lose? In a free market, people do not trade unless both parties believe they win, and I believe most people are the best judge of their own wants.

    Still, I can only conceive of one situation where trade would not benefit both parties, but it would not hurt either: namely where neither Fritz nor Lou has a comparative advantage producing apps or tablets. For example, if Fritz can produce 100 apps / year or 160,000 tablets, and Lou can produce 40 apps / year or 64,000 tablets, both can produce 1 app or 1600 tablets. In that situation, neither party would gain by trading, but neither would either party lose. In all other situations where there is a disparity between the productive advantage of the trading partners, both will always win by specializing in what they do best.

    Did I miss your point?

  6. Keith Knight

    Who would’ve thought outsourcing to China was good for us.  Thanks Learn Liberty!

  7. Joshua Wheat

    In this day, though, one corporation or country usually has some sort of advantage or leverage over the other.

  8. TheRequestNetwork1 .

    Old video but very informative, I hope more videos like this continue to come out. Art Carden is a great speaker.

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