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Ricardo strips away all of Adam Smith's assumptions that the owners of the means of production in society had any inherent right to profit from the labor of the working masses. Indeed, Ricardo laid out the conflict in modern capitalist society as clearly as anyone before or since his time. For Ricardo, the struggle in society was very plain. Capitalists made money off the surplus value created by workers, plain and simple. Therefore, capitalists needed to take as much of the surplus value as they possibly could with out any need for philosophical shilly-shallying. Capitalists need to recognise that their interests conflicted directly with the workers before it was too late. To increase profits capitalists should understand that they needed to reduce wages. Ricardo was elected to the pre-reform Parliament in 1819.
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In The Choice, Roberts borrows from Capra's "It's A Wonderful Life" to introduce his protagonist Ed Johnson to alternate worlds where free trade does and does not exist. Instead of Clarence the Angel, Ed is led around by David Ricardo, the economist who developed the Law of Comparative Advantages, which forms the foundations for supporting global free trade.
Throughout the novel, Ed raises questions based on his traditional thinking on protectionsim. Ricardo addresses each key concern in turn. The concepts debated include: loss of jobs, loss of our nation's economic status, national security needs, etc. More importantly, Ricardo convinvingly makes the point that total national economic self-sufficiency is a recipe for economic disaster/failure.
I found this to be an entertaining way to learn more about the debate on free trade and protectionism. This novel is easily more enjoyable than the typical economics text or article, and hence its message was delivered more effectively.
It is written in the style of It's A Wonderful Life, in that the main character, resembling the American Everyman in his doubts about the merits of free trade, wishes that things could have been different. He is led on a journey of what might have been. Roberts masterfully mixes in macroeconomic and international economic theory in the process, allowing the reader to make their own decisions on the merits of free trade, rather than simply being cowed by the picture he paints of a protectionist United States.
For those who are familiar with both macroeconomic and international economic theory, this book won't open your eyes. It does, however, provide a framework for explaining the merits of free trade to others. For those unfamiliar with economic theory, however, it is probably the most painless and enjoyable ways to become familiar with the territory.
The author uses some numbers and case studies to illustrate what happens when trade is free and when it is not. The "rigor" is there even if the elaborate geometry and mathematics usually found in economics textbooks are not. Like most economists, Roberts makes the case for free trade in terms of efficiency. Ultimately though, his message becomes a moral one and a challenge. "The real choice" declares David Ricardo (Russell Roberts), "is between a dynamic world and a static world---a world of encouraging people to dream and acquire the skills to make those dreams come true and a world of encouraging people to be content with what they have and to dream less." The Choice is about as good in spirit and persuasiveness as Frederic Bastiat's Economic Sophisms.
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