Understanding Vulgar Mercantilism

This chapter explores the misconceptions surrounding protectionist trade policies advocated by individuals with limited understanding of trade theory, particularly in relation to the Ricardian theory of comparative advantage. The discussion underscores the historical context of trade theory, addresses psychological biases influencing public perception, and highlights the complexity of international trade and its benefits for economic prosperity. By analyzing examples from different regions and industries, it critiques the simplistic views that connect international trade solely to job losses, emphasizing the dynamic interplay between trade, technology, and regional economic adjustments.