“Trade Is Made of Win,” Part 3: Conservation

Prof. Art Carden explains how trade not only creates wealth, but conserves both wealth and resources. When people have access to trade, they can produce the things they make efficiently, and then trade for the things they can’t produce as efficiently. This means they are able to meet their needs while consuming fewer resources. Part 3 of 3 in the “Trade is Made of Win” series.

13 Comments

  1. Alex Moscoso

    I like this video the most of the three parts. (see my comment on part 2 about the figures can be misguiding). I love to see that the different parts shows different ways of win, driving the understanding of trade in different formats. 

    Funny how at this time (Feb 2014) the global economy is showing more signs of protectionism versus trading (made in the usa vs made in mexico or china. Or trying to grow a specific industry in a country to create jobs vs specializing in certain industries and trading with a different country that specializes in something else. Not everyone needs to manufacture, etc.)
  2. Matt Wavle

    So, you believe that we should have completely open and free trade between all countries with no tariffs at all, on any product?

  3. Matt Wavle

    Alex is right, this was a great video.  Those who insist on the "Trade only creates winners and losers" mentality will think that you somehow created mathematical magic.  I can see a cognitive dissonance really messing up some people.  Well done Art Carden.

  4. Nathanael Stover

    Matt, tariffs restrict trade, and as we can see here, trade conserves resources and creates wealth. This is true regardless of whether Fritz and Lou live in two different States or whether one of them lives in a different country. If Fritz lives in the US and Lou lives in Argentina, a tariff on grain will make Fritz worse off, even if we do not care about Lou.

  5. Andremaia

    Im going to take a guess that they talked ahead of time on what needed to be produced, or it is determined by price.

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