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Free trade is optimal... assuming you're optimizing for the greatest number of goods manufactured at the lowest price. Given that all the developed economies have been demand-constrained since World War 2, that might not actually be the best variable to optimize for.


That's an interesting take that I (total non-economist) had never considered, where does the demand-constrained philosophy lead to in terms of variables to optimize for, and eventually, policies?


There's no such thing as demand constraints if you are talking about the whole economy: the supply of money is the constraint.




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