Trade Can Be A Non-Zero-Sum Game

I, like John Kay, think that reiterating what seems to be obvious to economists, has value, as it may not, and in this case it is not, at all obvious to non-economists. There are people, in some cases populations, who still think that engaging in commerce is a zero-sum game. One benefits only in the loss of the other. The benefit of one is due to tricking the other counterparty to accept a not good deal for him. In order to change this fundamental misconception, that still exists after centuries since it was proved wrong; I started this blog with an article on mercantilism. Today, John Kay on “It may be a Rembrandt to you, but markets can beg to differ” writes about the same subject providing examples where trade is not a zero sum game. It is a good read for everybody.

Mercantilism And Closing Ports In Greece

Recently a certain one labor union in Greece closed the Ports of Piraeus and Corinth. Piraeus closed for two days. In Corinth two European Union owned ships were blocked for more than fifteen days. Surprisingly, though, and even though courts decided against the blocking of both ports and in favor of free trade and free transportation, the government took the side of the minority-representing union, by not imposing the law-and-order that by the constitution is supposed to maintain. These are clear signs of mercantilism and agreements under the table between the government and the union. For this reason and in order to provide some evidence of the bad consequences of these practices in the economy, I cite two articles on mercantilism. The first one is borrowed from the Library of Economics and Liberty and the second one from Wikipedia. Hopefully, the general public in Greece will become more aware of the welfare implications of mercantilism.