Introduction
Modern economics is moving away from cold abstraction toward the analysis of institutions and social tensions. Classical comparative advantage is no longer seen as a stroke of luck, but as the result of deliberate state policy and investment in human capital. Openness to trade alone does not guarantee success; it requires a strategy that allows for real benefits from international exchange. In this article, we examine why traditional models fail, the role of an efficient state, and why we must redefine measures of prosperity, moving beyond the dictatorship of GDP.
Comparative Advantage and the Sticky Economy
David Ricardo’s classical theory assumed a frictionless world where resources and labor move instantaneously. However, reality is described by economic stickiness—a term introduced by Banerjee and Duflo. It refers to the resistance of the social fabric: the immobility of resources and the psychological fear of change. When an economy is "sticky," market mechanisms do not self-correct, and the costs of transformation are borne by real people.
This situation is explained by the Stolper-Samuelson theorem. It proves that opening borders favors abundant resources but hurts scarce factors—in wealthy countries, this is often low-skilled labor. The result is not an egalitarian utopia, but rising inequality and employment regression. In this context, protectionism is not a cognitive error, but an emotional reaction to a sense of betrayal by a system that promised benefits but delivered the degradation of entire social groups.
Efficient Government and Dignity as a Priority
In the face of crises, a good government must act as a skillful navigator of social conflicts. Its foundation is legitimacy and the ability to intervene effectively where the market fails. The modern state cannot be passive; it must actively manage a pluralism of interests and create a framework for the fair redistribution of opportunities. The Scandinavian countries, which combine market flexibility with strong social security, serve as a prime example.
Human dignity is becoming a key political category. In a world dominated by algorithms and competitive pressure, social policy must go beyond simple cash transfers. Wise governance involves restoring agency to those marginalized by deindustrialization. Dignity is the right to recognition, and its protection is essential for maintaining community cohesion and trust in democratic institutions.
GDP and the Post-Growth Paradigm
Gross Domestic Product (GDP) has become a universal measure of success, despite ignoring crucial aspects of life. As a measure of market activity, GDP is blind to inequality, care work, and environmental degradation. Statistical growth can mask a real decline in quality of life. This is why there is a growing conversation about post-growth—a conscious shift in the system's goal from maximizing consumption to optimizing real needs and regenerating the biosphere.
New quality-of-life indicators, such as the HDI (Human Development Index), GPI, or doughnut economics, should take the place of GDP. They allow progress to be measured through ecological sustainability and social justice. Post-growth economics does not mean stagnation, but development based on the depth of social ties and an abundance of non-market values. It is a transition from an economy of "more" to an economy of "better."
Summary
We stand on the threshold of a fundamental redefinition of economic concepts. Existing dogmas about self-regulating trade and unlimited GDP growth have exhausted their utility in the face of climate and social crises. It is no longer enough to simply add more indicators to the system; its foundations must be rethought. As Ivan Illich wrote, societies collapse when they lose sight of their purpose. And the goal of the economy is not to have more. The goal of the economy is to be better.
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