. . . Krugman's work is similar to that for an "optimal tariff" in that it is possible to, theoretically, identify a government intervention into trade that makes the nation (doing the intervention) "better off." But the response of Krugman . . .
This parallels a layer of public choice thinking that similarly doubts the efficacy of anti-trust, regulation, public provision, etc. Obviously if we are going to make comparisons, we would compare real-world "deregulation" and its nominal opposite. I raised it, though, because free trade is itself put forward in a bowdlerized academic form in the political arena. You hear about wine and wool in newspaper columns. When Gary Becker was asked why he supported the Bush Campaign's tax cuts, he advised reporters to consult a Principles of Economics textbook. So counter-models in this vein are not without practical usefulness. mbs
