“FREE TRADE” is NOT so “FREE” as it pretends to be
Free trade to the founding fathers was allowing merchants in the US to trade, without government restraint, with merchants in any country. Under British rule the British government placed certain countries off limits to colonial merchants, granted exclusive trading rights to some British companies, and restricted the use of foreign ships.
Free trade did not mean the elimination of tariffs. Tariffs and duties primarily funded the federal government until the income tax was passed in the early 1900’s. High tariffs were government policy in the 1700’s and 1800’s to fund the federal government and protect US factories while the nation was industrializing.
Despite high tariffs, American merchants and ships carried on a vigorous trade throughout the world. Yankee clipper ships were frequently seen in foreign ports. Americans exported lumber, fish, textiles, and leather goods. High tariffs were not an impediment to free movement of goods around the world on American ships. During the period from 1865 to 1900, US industry recovered from the ruin of a devastating civil war and grew rapidly resulting in the US developing into the greatest industrial nation in the world by 1900. The US economy flourished under high tariffs. The vibrant middle class formed during this period, the US led the world in technological innovation, entrepreneurship flourished and the standard of living rose dramatically.
Compare with the last 35 year period of reducing tariffs. The US manufacturing base has been decimated with the loss of millions of middle class jobs. Average household incomes have declined except for the wealthiest 1%.
The zero tariff modern free traders insist zero tariffs and open markets drive economic growth. The reality has been, all of that growth has occurred outside the US. There are no credible economic studies demonstrating NAFTA, WTO, CAFTA, and other tariff reducing agreements have delivered a net positive benefit to the US economy. History shows the periods of greatest economic expansion in US history have occurred during periods of high tariffs. Return to prosperity in the US will require the rebuilding of our manufacturing infrastructure. Protectionist tariffs are needed to accomplish this goal.
The founding fathers were much wiser men than the globalists of today. We should follow their example.