Matt Ivory The Choice Essay

The Choice by Russel Roberts, is an economic-theory driven book with a plot that follows the same flow as Its a Wonderful Life. However, instead of the guardian angel showing the main character how much he has influenced everyones lives for the better, in The Choice, the guardian angel (David Ricardo) takes the main character (Ed) through time showing him the significance of free trade. Through this plot Roberts is able to demonstrate to the reader many key topics of economics. One of the most important and key economic concepts shown in this book deals with comparative advantage or as it is referred to in the book, The Roundabout Way to Wealth. It starts off with David explaining that there is two ways to get a nation a desired product, the direct way or the roundabout way. The direct way is where the nation produces the desired good itself with its own factories and resources; the roundabout way is by creating a different product and through the use of free trade acquiring the desired product. The idea is that even if a nation is relatively poor at doing everything, theres some things it does relatively well (Page 10) and a nation that is really good at many things should still specialize in producing some items and import the rest (Page 10). Resources such as time, people, and materials are limited and by investing these resources into creating a good the nation takes away from the resources they could be spending in creating another resource. So if some nation is good at making one product, and some other nation is better at making another product, each should stay with their comparative advantage and the other nations goods the roundabout way. One of Davids examples to Ed deals with the fact that although Ed is the best typist, however he still has a secretary that does it a little slower than him because [his] time is better spent running the plant (Page 10). Throughout the book, Dave uses Eds grandchild (Justin) to show how his life would be in a world without trade and then in a world with trade. In the world of no free trade, the house is described as a nice house on a quiet street (Page 109) with Justin inside doing his homework on an old fashioned yellow pad of paper. As he points out, there is no big-screen television or voice-controlled computer (Page 109). Justin is however disabled and has to wear glasses to correct his horrible eyesight. As Dave points out, if it was not

for the glasses made in America, then Justin would have lost his eyesight completely. Although the world without free trade does not seem like a bad world to be in, it does not compare to the world with free trade. Unlike the other world, the house that Justin lives in has a big screen television and a computer and everything is of better quality. One of the main things that did not change in Justins life was the fact that his eyes were still problematic and he was wearing corrective glasses. However, in this world there is special medication that he takes that will eventually rid him of his eye problem. This drug is only accessible because in this world America is open to trade with other nations. If free trade did not exist, then this medication may never be developed by America.