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	<title>Comments on: A Note on Comparative Advantage</title>
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	<link>http://cafehayek.com/2009/09/a-note-on-comparative-advantage.html</link>
	<description>where orders emerge</description>
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		<title>By: Anonymous</title>
		<link>http://cafehayek.com/2009/09/a-note-on-comparative-advantage.html/comment-page-1#comment-181586</link>
		<dc:creator>Anonymous</dc:creator>
		<pubDate>Fri, 18 Sep 2009 04:52:00 +0000</pubDate>
		<guid isPermaLink="false">http://cafehayek.com/?p=6429#comment-181586</guid>
		<description>&quot;Both are better off if the lawyer does the legal work and the secretary does the typing.&quot;

What is interesting is that having the lawyer do everything, and then support the secretary, makes the sum of their incomes (&quot;the economy&quot;) larger still.  Of course, left to his own devices, the lawyer wouldn&#039;t do that, because he would be personally worse off than if he just fended for himself and fired the secretary.  What is interesting is that you never hear socialists making that point--the point that collective wealth could theoretically maximized, according to comparative advantage, if you have the least productive people enslave the most productive people.

Instead socialists routinely criticize comparative advantage on faulty grounds.  I guess it is because most socialists just aren&#039;t intelligent enough to understand the concept.</description>
		<content:encoded><![CDATA[<p>&#8220;Both are better off if the lawyer does the legal work and the secretary does the typing.&#8221;</p>
<p>What is interesting is that having the lawyer do everything, and then support the secretary, makes the sum of their incomes (&#8220;the economy&#8221;) larger still.  Of course, left to his own devices, the lawyer wouldn&#8217;t do that, because he would be personally worse off than if he just fended for himself and fired the secretary.  What is interesting is that you never hear socialists making that point&#8211;the point that collective wealth could theoretically maximized, according to comparative advantage, if you have the least productive people enslave the most productive people.</p>
<p>Instead socialists routinely criticize comparative advantage on faulty grounds.  I guess it is because most socialists just aren&#8217;t intelligent enough to understand the concept.</p>
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		<title>By: Anonymous</title>
		<link>http://cafehayek.com/2009/09/a-note-on-comparative-advantage.html/comment-page-1#comment-181230</link>
		<dc:creator>Anonymous</dc:creator>
		<pubDate>Wed, 16 Sep 2009 04:22:00 +0000</pubDate>
		<guid isPermaLink="false">http://cafehayek.com/?p=6429#comment-181230</guid>
		<description>Comparative advantage is quite easy to layout mathematically, resulting in a linear system of equations.  Doing so can be revealing.  For one thing, you can show that profitable trade is possible WHENEVER two people&#039;s productivity profiles (a profile being one person&#039;s productivity of each task relative to an arbitrary task) are NOT identical.  But of course, the larger the productivity profile, the less likely any two people will have the same one.  In fact, it is almost unimaginable that any two different people will have the same profile.  Comparative advantage is therefore effectively a universal law.</description>
		<content:encoded><![CDATA[<p>Comparative advantage is quite easy to layout mathematically, resulting in a linear system of equations.  Doing so can be revealing.  For one thing, you can show that profitable trade is possible WHENEVER two people&#8217;s productivity profiles (a profile being one person&#8217;s productivity of each task relative to an arbitrary task) are NOT identical.  But of course, the larger the productivity profile, the less likely any two people will have the same one.  In fact, it is almost unimaginable that any two different people will have the same profile.  Comparative advantage is therefore effectively a universal law.</p>
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		<title>By: Anonymous</title>
		<link>http://cafehayek.com/2009/09/a-note-on-comparative-advantage.html/comment-page-1#comment-181223</link>
		<dc:creator>Anonymous</dc:creator>
		<pubDate>Wed, 16 Sep 2009 02:44:00 +0000</pubDate>
		<guid isPermaLink="false">http://cafehayek.com/?p=6429#comment-181223</guid>
		<description>This one is difficult -- and I have a problem with the &quot;small business&quot; example.

Your example works only if the captain is capable of monetizing almost every hour in their day.  If not, it then depends upon their ability to monetize almost every hour in the gofers day.  The captain may be worth $200 an hour -- and the gofer only $25.  If the gofer requires eight hours a day -- or the equivalent of an hour of the captains time -- then it only makes sense if the gofer is utilized over an hour a day AND the captain can monetize every hour.  This is one of the reasons that almost all captains run about a half-of-a-man short.  They may be worth a lot -- but they can&#039;t sell every hour -- they&#039;re not worth a lot all of the time.

In a large enterprise, all of these assumptions change.</description>
		<content:encoded><![CDATA[<p>This one is difficult &#8212; and I have a problem with the &#8220;small business&#8221; example.</p>
<p>Your example works only if the captain is capable of monetizing almost every hour in their day.  If not, it then depends upon their ability to monetize almost every hour in the gofers day.  The captain may be worth $200 an hour &#8212; and the gofer only $25.  If the gofer requires eight hours a day &#8212; or the equivalent of an hour of the captains time &#8212; then it only makes sense if the gofer is utilized over an hour a day AND the captain can monetize every hour.  This is one of the reasons that almost all captains run about a half-of-a-man short.  They may be worth a lot &#8212; but they can&#8217;t sell every hour &#8212; they&#8217;re not worth a lot all of the time.</p>
<p>In a large enterprise, all of these assumptions change.</p>
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		<title>By: Seth</title>
		<link>http://cafehayek.com/2009/09/a-note-on-comparative-advantage.html/comment-page-1#comment-181221</link>
		<dc:creator>Seth</dc:creator>
		<pubDate>Wed, 16 Sep 2009 02:27:00 +0000</pubDate>
		<guid isPermaLink="false">http://cafehayek.com/?p=6429#comment-181221</guid>
		<description>I was reading the Friedmans&#039; &quot;Free to Choose&quot; last night.  The &quot;homely example&quot; of comparative advantage they gave was similar.  

Something like, &quot;A lawyer might type twice as fast as his secretary, but do legal work five times better than the secretary.  Both are better off if the lawyer does the legal work and the secretary does the typing.&quot;</description>
		<content:encoded><![CDATA[<p>I was reading the Friedmans&#8217; &#8220;Free to Choose&#8221; last night.  The &#8220;homely example&#8221; of comparative advantage they gave was similar.  </p>
<p>Something like, &#8220;A lawyer might type twice as fast as his secretary, but do legal work five times better than the secretary.  Both are better off if the lawyer does the legal work and the secretary does the typing.&#8221;</p>
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		<title>By: Anonymous</title>
		<link>http://cafehayek.com/2009/09/a-note-on-comparative-advantage.html/comment-page-1#comment-181187</link>
		<dc:creator>Anonymous</dc:creator>
		<pubDate>Tue, 15 Sep 2009 19:29:00 +0000</pubDate>
		<guid isPermaLink="false">http://cafehayek.com/?p=6429#comment-181187</guid>
		<description>Diversified conglomerates basically do this. GE makes refrigerators and lightbulbs and hundreds of other things. But they don&#039;t have their best lightbulb-maker making refrigerators, even if he&#039;s pretty good at that too.</description>
		<content:encoded><![CDATA[<p>Diversified conglomerates basically do this. GE makes refrigerators and lightbulbs and hundreds of other things. But they don&#8217;t have their best lightbulb-maker making refrigerators, even if he&#8217;s pretty good at that too.</p>
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