By Ha-Joon Chang
“Lucid, deeply expert, and enlivened with extraordinary illustrations, this penetrating learn will be entitled ‘Economics within the genuine World.’ Chang unearths the yawning hole among common doctrines referring to financial improvement and what relatively has taken position from the origins of the economic revolution until eventually at the present time. His incisive research indicates how, and why, prescriptions according to reigning doctrines have prompted critical damage, really to the main weak and defenseless, and are inclined to proceed to do so.”—Noam Chomsky
Using irreverent wit, an engagingly own sort, and a battery of examples, Chang blasts holes within the “World I s Flat” orthodoxy of T homas Friedman and different liberal economists who argue that merely unfettered capitalism and wide-open overseas exchange can elevate suffering international locations out of poverty. to the contrary, Chang exhibits, today’s monetary superpowers—from the U .S. to Britain to his local Korea—all attained prosperity through shameless protectionism and govt intervention in undefined. we've with ease forgotten this truth, telling ourselves a fairy story concerning the magic of loose exchange and—via our proxies resembling the area financial institution, I nternational financial Fund, and global T rade Organization—ramming guidelines that go well with ourselves down the throat of the constructing global.
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Extra info for Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism
Before Ricardo, people thought foreign trade makes sense only when a country can make something more cheaply than its trading partner. Ricardo, in a brilliant inversion of this commonsensical observation, argued that trade between two countries makes sense even when one country can produce everything more cheaply than another. Although this country is more efficient in producing everything than the other, it can still gain by specializing in things in which it has the greatest cost advantage over its trading partner.
It was naturally denied the use of tariffs to protect its new industries. It was prohibited from exporting products that competed with British products. It was given subsidies to produce raw materials. Moreover, outright restrictions were imposed on what Americans could manufacture. The spirit behind this policy is best summed up by a remark William Pitt the Elder made in 1770.  In reality, British policies were a little more lenient than this may imply: some industrial activities were permitted.
It might even be reasonable for him to impose conditions on what kind of construction materials I can use and what kind of machinery I can buy in expanding my factory. But, if he attaches the condition that I cut down on my fat intake on the (not totally irrelevant) grounds that a fatty diet reduces my ability to repay the loan by making me unhealthy, I would find this unreasonably intrusive. Of course, if I am really desperate, I may swallow my pride and agree even to this unreasonable condition.
Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism by Ha-Joon Chang