Choice: A Fable of Free Trade and Protectionism by
Russell Roberts explains macroeconomics well for the real world and emphasizes
the history of David Ricardo and the judge in court with David Ricardo, foreign
competition, the roundabout way to wealth, trade, manufacturing versus service
jobs, outsourcing, tariffs versus quotas, and the case for protection. The book
was not based on true story; David Ricardo lived in the 19th century
and Ed Johnson in the 20th century. Each timeframe summarizes the
autobiographies of David Ricardo and Ed Johnson.
David Ricardo was an English Economist. He charged for
the London Stock Exchange. He established his work, On the Principles of Political Economy and Taxation, in 1817.
During the late 1930s, Ed Johnson, on the other hand, earned an Engineering degree from the
University of Illinois (Roberts xi). He served in the U.S. Army. He was rewarded
a Silver Star during World War II. After the war, he began to work for the
Stellar Television Company. He was also a president in his company. Johnson
applied Ricardo’s Theory of the economy and occurred to his Johnson’s job
book provides a David Ricardo and the judge in a court system, Ricardo started
to introduce himself to the judge. He had proved his theory, On the Principles of Political Economy and
Taxation, and he noted the nation’s advantage from free trade. He was also correct
about Protectionism regarding the British Parliament. The judge examined
Ricardo’s theory of Protectionism, asking him for evidence. During the retrial,
the judge tried to show Ricardo that the policy would help the stock market. If
the judge rejected Ricardo’s request, then he would be run out of business, but
the judge accepted his request, and he was able to keep his business.
Johnson worked really hard in the Stellar Television Company. Japan wanted a Stellar
Television, but Mr. Johnson was unable to share the television with the Japanese
people because he needed to keep his own stable job and wages. Frank Bates
prohibited television imports. Ed Johnson was aware of his own stock market
being affected by foreign competition. Ed Johnson and Frank Bates both agreed
in their negotiations about importing television.
“Roundabout Way to Wealth,” Ed Johnson admitted to sending pharmaceutical drugs
to Japan, so Japan sent televisions. Japan received drugs from the U.S. and
Japan exported television. In the country, the resources were limited by demand
and supply. If Japan increased the supply of drugs, then the prices went up for
drugs. This pharmaceutical products could be effective. Japan was very poor and
wanted something for goods that was called “The Roundabout Way to Wealth.” Americans
gave up pharmaceutical productions, and Japan made televisions that were very
pricey because of opportunity cost. Both countries exchanged their own goods.
They desired to make a products at a lower cost. Americans did not want the
government to shut down the business.
In the “trade,” Americans were wealthier than Japan. The
U.S. and Japan fought over trade markets for economic collapse, so David’s
theory logically worked in the economy for these countries. U.S. Companies had
created the technology. The job markets augmented for the freedom, so they
would like to have a computer for their own companies. The computer was useful
the material tool for a better jobs in the U.S.
Americans changed the manufacturing jobs that caused the
stock market to fall. Two of the main problems were technology and low-skilled
workers. For example, the steel and automobile industries were manufacturing
jobs, so Americans were constantly growing the service jobs. For instance,
engineers, computer programmers, lawyers, and doctors were service jobs for
professional white-collar workers. Service jobs were good, but manufacturing
jobs were bad. Therefore, both types of manufacturing and service jobs challenged
with Internet that affected by a market.
Outsourcing was experienced outside the company for a
particular service (Roberts 32). The computer had many gadgets such as Internet
and tools. Tools used networking, web design, databases, and security. Americans
were supportably outsourcing the company. “They made very wealthy for using
Indian computer programmer” (Roberts 36). Advanced technology are very
resourceful and handy for the American.
Tariffs were caused by unemployment. No one did not know
about pharmaceutical plant or computer plant. These plants were tough. Tariffs
were created on importing the television. Frank Bate’s bill was a quota. It
reduced foreign supply, so the prices went up for televisions. For a quota,
Americans lost from too few televisions purchased and too many resources to
produce television. For a tariff, Americans claimed goods and services.
Ed struggled for the case for protection. Tariffs were removed,
so the price of televisions fell down. The consumers bought a higher quality
televisions and enjoyed watching it. Americans had the right idea that buying
the television in their own freedom. Ed Johnson was secured for his Stellar
For some of the chapters, David Ricardo and Ed Johnson
solved the problems for the macroeconomics in the real world and dealt with
foreign competition, the roundabout way to wealth, trade, manufacturing versus
service jobs, outsourcing, tariffs versus quotas, and the case for protection
in other countries. Ricardo was very successful for his theory as an Economist.
Johnson was very proud of himself about his business, and he had achieved the
certificates and rewards in his company.