On Tue, 11 Mar 2008 13:06:03 -0400, "Ed Huntress"
wrote:
snip
There was no "world market" when prices and wages were established by market
forces in the US. What happened is that the "world market" grew up, around
pittance wages and trivial embedded costs, fueled by the free movement of
capital and the rapid transfer of technology.
snip
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Indeed, and be reminded that the Recardo grift of "comparative
advantage" posited that capital, including intellectual capital
[i.e. technology] is "fixed" within a country. As soon as
capital is free to relocate, "comparative advantage" disappears
leaving only "absolute advantage." The continued assumption (or
at least propagandizing] of "comparative advantage" with mobile
capital appears to account for the large number of problematic,
economic crisis [and paupers] being generated.


Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).