Greece, the land that created Western civilization. The home of more philosophers, playwrights, and producers of knowledge then anybody can remember. The foundations of the modern Western world can be traced back to that collection of bickering city states and their varied systems of thought.
If any nation can claim to be the most influential in history, Greece has a strong argument to make.But, how could a small area on the rocky shores of the Mediterranean do this? After all, look at it now. What has it done for us lately?
According to author Josiah Ober there was a reason Greece was able to crank out such incredible cultural works, and that was a sound trade policy. One based on largely free trade between city states which specialized in goods for which they had a comparative advantage. Generating enough wealth to allow for artisans to perfect their craft, a middle class demand for high quality goods, and for major building projects to be undertaken for nothing more than glory and pride.
How does this trade principle work?Comparative advantage is one of the most firmly held ideas in all of economics. Formalized by David Ricardo in 1817, it is simply the idea that the greatest amount of wealth…
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