Sunday, May 3, 2009

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nventos also emerged as unintended byproducts of emulation among nations and rulers in war and luxury. Once it was observed that some of the resources devoted to resolving problems produce wartime inventions and innovations, the same mechanism could be applied in peacetime.

Europeans soon found that wealth was widespread only in areas that lacked agricultural practices or in which it Só I played a marginal role, coming to be understood as a byproductunintended agglomeration of various industries in large cities. Once you understand these mechanisms, a wise economic policy could spread the wealth out of those few areas "naturally rich." The policy could also emulation, in fact, spreading wealth to poor agricultural areas before and feudal, but that required massive intervention in the market and a wise economic policy ; mica ls could replace natural and geographical advantages that led to the first rich countries. We can imagine further that the taxcommodity exports and imports of finished products were conceived as means to improve the incomes of poor countries, but as a result of these measures increased wealth due to growth in domestic industrial capacity. This combination of different purposes was already clear in England during the reign of Edward III (1312-1377).


Thus, rivalry, war and emulation in Europe resulted in a dynamic system of imperfect competition and increasing returns. The new knowledge and innovations are propagated bythroughout the economy by allowing greater benefits and higher wages and a broader base for tax collection. European economic policy was based for centuries on the belief that the creation of an industry solve fundamental economic problems of the time, favoring the increase of employment, benefits, wages, based on tax collection and circulation of currency. The Italian economist Ferdinando Galiani (1728-1787), whom Friedrich Nietzsche considered the smartest person in the eighteenth century, stated that "industry is puede expected to cure the two main evils of humanity, supersticióny slavery. " Standard texts in economics, seeking to understand economic development in terms of "perfect markets" without friction, Marra unfortunately white. Perfect markets are for the poor. It is equally futile to try to understand this development in terms of what economists mean "market failures." Confronted with the economy of the texts, economic development is a massive failure of perfect markets.

CH(John Kenneth Galbraith and Alice Amsden). Colonialism was essentially a system in which it was intended that these effects were not made, and our inability to understand the relationship between colonialism and poverty is a significant barrier to combat the latter.

The doctrine of comparative advantage, designed by Ricardo, is the foundation of the current international economic order. A prominent U.S. economist Paul Krugman says that "intellectuals" do not understand the idea of Ricardo's comparative advantage, which is "absolutely certain, immensely sophisticated and extremely relEvant for the modern world. " I argue the opposite: that the economics of Ricardo, by removing economic theory a qualitative understanding of change and economic dynamics, has become a device that enables a nation specializing in being poor. In Ricardo's theory of economics has no purpose, no progress and therefore nothing to emulate. Washintong Consensus, with its blind faith in comparative advantage as a solution to the problems of the poor, has flatly rejected the "toolbox" of emulation, despite its impressive successes in five hundred

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