Outsourcing: Good for You, Good for Me. But should I mow my yard or pay someone to do it?

There has been much talk recently about the economic impact of outsourcing and whether it is good for the American economy. Commentators such as Lou Dobbs of CNN have argued that outsourcing is the bane of our economic existence. Let's be clear: Outsourcing is simply another name for international trade. Economists, by our nature, tend to be ardent supporters of free trade. In Chapter 2, you are introduced to David Ricardo and his theory of comparative advantage. Ricardo argues that nations can increase their standard of living if they allocate their resources so that they specialize their production in those goods in which they have a comparative advantage. By focusing on those goods at which they are relatively more efficient at producing, nations can then trade for the goods produced by other countries. By so doing, both countries can benefit by obtaining goods at lower prices than what could be obtained solely from domestic production.

Greg Mankiw, the former Chairman of the Council of Economic Advisors under President G.W. Bush, and strong supporter of free trade, learned a lesson in the politics of trade and jobs as recounted here.

This all brings me to the following dilemma: should I mow my yard or outsource it to some neighborhood kid? I'm pretty sure I can mow my yard in a shorter amount of time than some 14-year old kid. But, the theory of comparative advantage says that doesn't matter. What matters is the opportunity cost of my time: I could be teaching economics, for example. Even though I may be better at mowing my own yard compared to the kid, I may be a lot better at teaching economics than the kid. Thus, I should specialize in teaching economics and simply pay the kid to mow my yard. Trade benefits all!

The funny thing is, though, that I have never paid a kid to mow my yard. I have been mowing my own yard for over 20 years now. My question is: Am I irrational?