But of course you can have your cake and eat it, too-if you decide to to bake a second cake. And you may well find that baking two cakes does not take twice the work of baking one.
In a world where technology and capital are highly transferable, there is a real risk that comparative advantage comes to be defined as whose labor force will work for the lowest wage.
The total impact of the Reagan tax cuts on capital lowered the effective cost of capital to American industry by an estimated 1.2 percent. Unfortunately, the Laffer curve did not work as advertised. Lower tax rates did not produce more tax revenues. They produced deficits.
I have tried to suggest that injustice is not necessary economics; that the economics can work, and has often worked, when the constituency for it is animated. The politics of equality - that is a little harder.