you’ll laugh, you’ll cry, it’ll change your life

KRUGMAN

From his blog “…And needless to say, we can’t all export ourselves out of a global slump.” Well, you know, you can. As long as you don’t assume that exports are getting a greater return than their value, what you are observing is a voluntary mutual exchange. We can all make something ourselves and exchange it with someone else who can not make our product, but something else that we value equally. Two people trading with each other on a desert island produce more than two people who refuse to associate.

UPDATE: Yes, I realize he was referring to the impossibility to export outside of the globe. My point is that it’s not necessary. Given the opportunity, individuals will trade to their mutual advantage. History has shown this , even when sides are opposed, they will trade for the sake of “business”.

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