AUSTRIAN ECONOMICS ADDICT

In our previous post I briefly touched on specialization and trade. Civilization advances  through specialization and trade not just from the stand point of creating more wealth, but also from the stand point of creating a more peaceful world because of the cooperate involved in trade. This short video from LearnLiberty.org, featuring Art Carden, is a very good explanation of these concepts.

Specialization and trade utilize scarce resources, time, labor, and capital as efficiently as possible. Labor, time, capital, and resources are freed up, because of specialization and trade, and can now be used for other activities that couldn’t have been attempted before these scarce resources were freed up. These new activities may prove to be productive or they may not. The good news is that in a free market they will be allowed to succeed or fail depending on their ability to produce more value than the cost of the production.

For a more in-depth analysis of this subject read, People Can Just Get Along, by Robert P. Murphy, at mises.org.

This entry was posted on July 24, 2013 at 12:09 am and is filed under Econ. 101. You can subscribe via RSS 2.0 feed to this post's comments.

Tags: Comparitive Advantage, Free market, Free trade, Scarcity, Specialization, Trade, Wealth Creation