IPFS News Link • Free Trade
A Solipsist's Guide to Comparative Advantage
• EconLib / Bryan CaplanOf course, solipsism is false. But we two solipsists can still teach the world a lesson. Namely: in a deep sense, trade increases productivity:
|
Without Trade |
With Trade | ||
|
Wheat |
Steel |
Wheat |
Steel |
You |
10 |
1 |
10 |
10 |
Me |
1 |
5 |
5 |
5 |
You might object, "We already know that trade increases productivity via shared knowledge, increasing returns, etc." But these are all empirical claims. My point is stronger: Trade tautologically increase productivity. And if a solipsist can see this, so should everyone.