Today, 05:01 PM
The point was, a responsible adult will limit how many irresponsible trades they make. As an individual, irresponsible trades can look like paying exorbitant fees to get groceries delivered to you when the grocery store is 3 blocks away. I do this personally because I can afford it but it's expensive and addictive and even though I can afford it, it is still quite irresponsible as I'm not doing anything "productive" with the time I'm saving. I'm just being exceptionally lazy.
These irresponsible trades destroy personal wealth. Or more accurately, that wealth gets transferred. When you buy hookers and coke, yes both sides benefit in terms of value, but only one side benefits in terms of wealth.
The same thing happens at a national level. Nations can make irresponsible trades. If a nation sells its means of production, and then spends that money on consumption products - which is what this nation did - then that is an irresponsible trade.
There is almost no such thing as "specialization" when it comes to countries the size of the US. There are very few products that other countries can produce better due to advantages other than simply labor cost. (Exceptions including, tropical produce, a few rare minerals, etc)
I have proven that these labor-cost based trades can be detrimental to a country's economy. (See, the referenced link from earlier) I welcome any attempts to disprove it.
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