Cluster Theory & Competition

18 Pages 4507 Words

ound and intellectually right” (Keynes, 1931), he claimed that a country ought not to “specialize in half-a-dozen mass-produced products, [with] each individual doing nothing and having no hopes of doing anything except one minute, unskilled, repetitive act all his life long” (Keynes, 1932/33). Thus, a balance should be struck between economic arguments of efficiency and the need for varied local industry. In an apparent shift from earlier writings, Keynes (1944) stated the following:
I sympathize, therefore, with those who would minimize rather than with those who would maximize, economic entanglements between nations. Ideas, knowledge, art, hospitality, travel -- these are the things which should of their nature be international. But let goods be homespun whenever it is reasonably and conveniently possible, and above all, let finance be primarily national.
Keynes’ ambiguous stance on the topic can be attributed to his belief that “it is better to be roughly right than to be precisely wrong” - A policy that has paid off. Keynesia...