Well, that, plus the currency and technology-transfer dynamics that I mentioned. Under his theory (at least what I recall about it), currency adjustments would work very quickly to re-balance trade. And technology would not transfer as quickly, nor as massively, between advanced and developing countries. I think he would have been astonished at what happened with the GM-Shanghai engine plant, for example. Things just didn't happen that quickly; currency adjustments were a great buffer; and stable, balanced trade would be the result of free international markets.
It was a good idea in 1960. It just hasn't worked out, because many things have changed.
If you can answer that, there are entire countries that will build monuments to you. d8-)
We don't know what to tell them. I told my kid to go do his homework, too. But I think he has a pretty good idea. There is a lot of demand for the skills he's developing in a graduate program in applied math, backed by his economics degree.
Still, it's no guarantee.
Well, the question is, what kind of world are we building for ourselves now? One in which we have to keep beggering our incomes down to compete with the newest, cheapest global manufacturing country?
I guess if we all jump off the cliff together, we'll all hit bottom at about the same time. It just doesn't sound like fun.