Chapter 3: Why doesnt everyone get the case for free trade? Flashcards
1
Q
What is a social cost?
A
The toll an action takes on society (think slavery)
2
Q
What negative effects can implementing free trade have on a society?
A
Income redistribution (some sectors grown while others shrink). No concrete proof that free trade improves the overall standing of a society
3
Q
When income is redistributed, what must the new system achieve to benefit the nation?
A
More overall gains than losses.
4
Q
Why does Rodrik think economists are scumbags?
A
He thinks they know what is “good” for society even when these actions may be a detriment to others. Also he is a prick.
