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20 sats \ 1 reply \ @Undisciplined 21 Feb \ on: How Tariffs Block Entrepreneurial Discovery and Stall Progress econ
I love the overall point and only an Austrian is going to make it, even though any economist will agree with it.
I do have a couple of nitpicks though:
- Trade models used for analyzing tariffs are not always perfect competition models. Frequently, you'll see monopolistic competition models. That doesn't change the overall point, though.
- I don't know how autarkic Iran would be, if left to their own devices, but the US has been imposing a high degree of autarky on them for decades, with draconian sanctions.
For #1, they still don’t like to admit that there is only imperfect knowledge in the markets, either. Therefore, there is no such thing as perfect competition or monopolistic or perfectly oligopolistic competition, either, because an entrepreneur who more accurately foresees market conditions can slip into the mix.
For #2, I think they would welcome free trade or at least managed trade just as everyone else would. They are getting stomped on pretty hard by the Israeli factions, aren’t they?
Austrians sometimes do say things other economists can agree with, as long as how they derived what they were saying isn’t said. :)
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