Comparative Advantage for Economy and Career

Comparative Advantage for Economy and Career

All wealth comes from production and exchange: making and trading goods and services. The two are closely related: the more you trade, the more you’re able to produce. How does that work? Through the magic of specialization.

When you trade, you’re able to specialize in your comparative advantage, that is, what you can do relatively cheaply compared to everyone else. If you didn’t trade, you’d have to make everything yourself: clothes, food, shelter, transportation, health care, etc. You’d be very, very poor. By trading with other people, you can focus on doing one narrow thing really, really well, earning money, and trading that money away for other goods and services that other people focus on doing really, really well.

Why Paternalism Is Undesirable

Why Paternalism Is Undesirable

Paternalism means forcing someone to do something, or not to do something, for that person's own good. For instance, a vigilante paternalist might go around slapping cigarettes out of people's hands. The government often engages in paternalism to deny adults the right...