Trade strategy
Monday, December 31st, 2007From the preceding article, below:
Until World War II, we Americans used to think strategically on trade. We knew of the free trader’s theory of comparative economic advantage but did not worry much about it, because our goal was not to achieve the lowest possible prices or even to maximize global output but rather to build the most powerful industrial capacity the world had ever seen, whose workers enjoyed the world’s highest standard of living, in a republic more self-sufficient, more secure, than any republic in history. As Pat Buchanan observes, it was not who ate the apples that mattered to us then; it was who owned the orchard. We wanted the orchard, and we got it, and the result was the American superpower of the twentieth century.