Trade Is Not a Light Switch: Why Cutting Global Ties Will Leave Long-Lasting Scars

Trade Is Not a Light Switch: Why Cutting Global Ties Will Leave Long-Lasting Scars

The division of labor depends upon the extent of the market, but the extent of the market also depends upon the division of labor. The division of labor is limited not merely by the size of the population but by the size of the market, and the size of the market is itself a function of the division of labor. The process is cumulative and self-reinforcing. –Allyn Young, “Increasing Returns and Economic Progress” 1928 Imagine you’re a T-shirt prod…

Trade is Not Light Switch: Why Cutting Global Ties Will Leave Long-Lasting Scars

The division of labor depends upon the extent of the market, but the extent of the market also depends upon the division of labor. The division of labor is limited not merely by the size of the population but by the size of the market, and the size of the market is itself a function of the division of labor. The process is cumulative and self-reinforcing. –Allyn Young, “Increasing Returns and Economic Progress” 1928 Imagine you’re a T-shirt prod…