News for hackers. Stuff that matters.

A comment on China’s Economy to Reap Benefits That Once Flowed to U.S. Parent comment

Re:China’s Economy to Reap Benefits That Once Flowed to U.S by tivert on Monday December 24, 2018 @08:34PM (#18755336)
> That is exactly what comparative advantage implies. The US cannot be great at Silicon Valley and Detroit (well, the manufacturing bits) at once.

Why not? On another continent, Silicon Valley and Detroit would be in entirely different countries.

Labor arbitrage doesn't reflect a real comparative advantage.

[ Parent | on HN ]
Re:China’s Economy to Reap Benefits That Once Flowed to U.S by village-idiot on Tuesday December 25, 2018 @01:37PM (#18758619)
Distance doesn’t seem to matter as much as culture, government, and monetary policy. Silicon Valley and Detroit share a currency, a government, and a population.
[ Parent | on HN ]