The one thing that the economists left out of their model is if the competitive advantage is caused by structural societal issues. I.e. if I can dump my manufacturing and chemical waste directly into the river and have people live in dorms and essentially work at my whim, and have no OSHA rules versus I am more efficient due to technology, or natural resources you can either match my practices live like I do or lose.

A good explanation is the tragedy of the commons. You actually see it in the U.S. as jobs move from higher cost states like CA and MI to places like AZ and SC where state laws and taxation are much lower.

Now in no way does this mean I think things like Brexit (I am in Britain right now) or Trump or Bernie’s rantings are in anyway on point.

However what the “elite” (using quotes for a purpose) don’t understand and takes them by surprise is the fact that you can quote all of the economic theory that you want (and I have an economics degree from Wharton) but sometimes common sense trumps (sorry for the pun) theory.

Having a datacenter in mainland China I can tell you the rules are in no way reciprocal and that is bullshit. Spout all of the theory you want but you need to have trade that is two way. I.e. I can wholly own a business or property in China just the same as they can in the U.S.

Now look, the fact is that free trade makes everyone work harder and smarter which increases output and that is great. If somehow Britain really does expel EU workers this country would shut down.

You are right if you tried to manufacture Ring in the U.S. it wouldn’t be a business. But on the other hand ask companies like Google about building a business in China.

But what a good democracy is supposed to is moderate positions. That is what we have lost now with each side digging in on hard line positions and basically taking things to the wall with a majority vote versus trying to reach a compromise.