Harmony: The Mercantilist Fallacy | How can we have a Win-Win?

#economics #trade #statism

The fallacy destroyed long ago still lives on strong today. Mercantilists believe one man’s gain must be another man’s loss. Exchange benefits both parties involved. One man’s gain and another man’s loss are only in war and plunder. The market is not war and plunder. The mercantilist theory is entirely wrong. The exchange wouldn’t be made if the parties didn’t expect to benefit.

We will use a physician and patient as an example. The physician will profit when the patient goes to see him. The patient can now treat the ailment. The physician and patient are both better off. The physician didn’t make the patient sick. The patient was hurt by being sick, not the treating physician. Not just anyone is qualified for this role. The prospect of profits drives those qualified to this disparity.

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