3min chapter

Lex Fridman Podcast cover image

Paul Krugman: Economics of Innovation, Automation, Safety Nets & Universal Basic Income

Lex Fridman Podcast

CHAPTER

The Complexity of International Trade

International trade is not really that different from trade among individuals. Most trade is beneficial to both sides and to both countries, but it has big impacts on the distribution of income within countries. We have some real problems with China though, really involve trade so much as things like respect for intellectual property. Not clear that those real problems that we do have with China have anything to do with the current trade war. Current trade war seems to be driven by a fundamentally wrong notion that when we sell goods to China that's good and when we buy goods from China that's bad.

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