First, listen to this podcast: “Russ Roberts on Smith, Ricardo, and Trade Links to an external site.” (you can also find this on Spotify, under the podcast “EconTalk”) Then, in the comments, write the following: A brief summary of the podcast episode (2-3 sentences). How did the podcast relate to some ideas you’ve encountered in this class? How does this podcast help us understand human prosperity?
Here is a brief summary of the EconTalk podcast “Russ Roberts on Smith, Ricardo, and Trade”:
The podcast discusses the ideas of economists Adam Smith and David Ricardo on trade and specialization. It explains how their insights into comparative advantage and the division of labor helped explain why trade and specialization increase productivity and prosperity. The host and guest discuss how these economic ideas relate to current issues around trade and globalization.
This podcast relates to ideas from our economics class on trade, comparative advantage, and how specialization and exchange increase productivity. The theories of Smith and Ricardo help explain how trade can benefit all trading partners through specialization in areas of comparative advantage. Their insights help us understand how trade and open markets promote innovation, efficiency, and ultimately human prosperity. The podcast illustrates how economic ideas from hundreds of years ago still provide insights into how trade impacts prosperity today.