April 2 2016 at 11:08 am
According to Michael Rowbotham (1), Ricardo stipulated 3 conditions for free trade to create mutual benefit:
1) Capital must not be allowed to cross borders from a high wage to a low wage country
2)trade between participating countries must be balanced
3) Each country must have full employment.
he goes on to say: ‘Since non of these conditions applies anywhere in the modern world, and since nations are all attempting to pursue an imbalance of trade, how can the theory be expected to operate properly?’
Free market fundamentalism is like saying that we have to let the weather wreak havoc and not bother building flood defences, safer housing because the weather is the natural order of things. It’s a denial of human agency.
Richard Murphy says:
April 2 2016 at 8:45 pm
Help me out here. Where did Ricardo say this?
Joan Robinson argued some of those restrictions, but Ricardo?