My six year –old son should get a job! Economics 장준우

Contents Bad Samaritans My six year –old son should get a job! Historical Case Conclusion

1. Bad Samaritans - This book argues with Author : 장하준 First Publication: 2007. 10. 10 - 장하준 is representative non mainstream economist - This book argues with free trade, particularly in Relationship between developing countries and developed countries.

2. My six year –old son should get a job! “ I have a six – old son. … He lives off me, yet he is quite capable of making a living … but million of children of his age already have jobs. … He is over-protected and needs to be exposed to competition, so that he can become a more productive person. … ” (page 65) “ If I drive Jin-Gyu – his son– into the labor market at the age of six, he may become a savvy shoeshine boy or even a prosperous street hawker, but he will never become a brain surgeon or a nuclear physicist ”(page 65) A industrial policy or Infant industry protection

3. Historical Case (1) Once upon a time, There was one company making simple textile machinery in one country. This company try to making a car. Unfortunately, This company had not made good car for 25 years! But government had given the car maker every opportunity to succeed. In the present? This company becomes one of the most car makers.

3. Historical Case (2) United states - In 1913, reducing average tariff rate on manufactured goods from 44% to 25%. - However, by 1925, tariff rate had climbed back up to 37% - In 1930, tariff rate rose to 48% - US has never had a zero-tariff regime! (1860 to 1932) - moreover, between the 1950s and the mid-1990s, US federal government funding accounted for 50-70% of the country’s total R&D funding

3. Historical Case (3) United Kingdom - In 1820, UK’s average tariff rate on manufacturing imports was 45%-55%, compared to 6-8% in the Low countries, 8-12% in Germany and Switzerland and around 20% in France. - UK imposes an outright ban on advanced manufactur- ring activities that it did not went developed - UK banned exports from its colonies that competed with its own products, home and abroad.

“when the facts change, I change my mind – what do you do, sir?” 4. Conclusion “when the facts change, I change my mind – what do you do, sir?” John Maynard Keynes (page 221)

Thank you!