Heterodox
What follows is based on Erik S. Reinert’s book How Rich Countries Got Rich, and Why Poor Countries Stay Poor (2007), pp. 301–304.Ricardo’s famous example of cloth and wine production in Portugal and England (Ricardo 1819: 144–148) can be set out in the following table: Ricardo’s argument is simple: Portugal can produce more wine by concentrating on the production of that, and import cloth from England, even if (as in Ricardo’s example) it takes fewer labourers to produce cloth in Portugal...
Read More »Erik Reinert versus Ricardo on Free Trade
