Comment Re:Just outlaw tourism (Score 1) 451
During an embargo, I would rather be in a net exporting nation. At least you'd be able to feed and supply yourself with the raw materials to survive. You'd have plenty of labor freed up to produce things your country may need as opposed to the world.
On the other hand, if you import your consumption goods, commodities, and agriculture, you suddenly need to provide those yourself. With an unemployment of 5% and a frictional rate of 3%, you only have 2% of the workforce free to take those amazing "new jobs". There's simply not enough people. You could retrain everyone who currently exports to provide domestic goods, but again we have a smaller export workforce than is needed to provide our imports. In addition, we would be shifting people from high productivity jobs which generate much of our wealth to the low productivity jobs we used to shove on others.
The difference is exporting nations hurt while they shift labor. Importing nations hurt because they simply cannot provide enough.
On the other hand, if you import your consumption goods, commodities, and agriculture, you suddenly need to provide those yourself. With an unemployment of 5% and a frictional rate of 3%, you only have 2% of the workforce free to take those amazing "new jobs". There's simply not enough people. You could retrain everyone who currently exports to provide domestic goods, but again we have a smaller export workforce than is needed to provide our imports. In addition, we would be shifting people from high productivity jobs which generate much of our wealth to the low productivity jobs we used to shove on others.
The difference is exporting nations hurt while they shift labor. Importing nations hurt because they simply cannot provide enough.
