Posted on 03/10/2016 8:03:42 AM PST by No One Special
First, Friedman from "Free to Choose", Chapter 2, "The Tyranny of Controls"
It is often said that bad economic policy reflects disagreement among the experts; that if all economists gave the same advice, economic policy would be good. Economists often do disagree, but that has not been true with respect to international trade.
Ever since Adam Smith there has been virtual unanimity among economists, whatever their ideological position on other issues, that international free trade is in the best interest of the trading countries and of the world. Yet tariffs have been the rule.
[...]
We [the U.S.] should move unilaterally to free trade, not instantaneously, but over a period of, say, five years, at a pace announced in advance.
Few measures that we could take would do more to promote the cause of freedom at home and abroad than complete free trade. Instead of making grants to foreign governments in the name of economic aid—thereby promoting socialism—while at the same time imposing restrictions on the products they produce—thereby hindering free enterprise—we could assume a consistent and principled stance. We could say to the rest of the world: we believe in freedom and intend to practice it. We cannot force you to be free. But we can offer full cooperation on equal terms to all.
Our market is open to you without tariffs or other restrictions.
Sell here what you can and wish to. Buy whatever you can and wish to. In that way cooperation among individuals can be worldwide and free.
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Now, Karl Marx:
Karl Marx advocated Free Trade, i.e. Capitalism, because (a) whereas Protection builds up the nation-state, Free Trade breaks it down, as a prelude to the creation of a world-state by the Capitalists (b) Free Trade breaks down traditional culture, as a prelude to the creation of a world culture (c) Free Trade exacerbates class warfare, and through this the Capitalists will lose control of the world-state - they will be defeated by the impoverished classes, with the help of their backers in the higher classes.
Marx quote: In a word, the Free Trade system hastens the Social Revolution. In this revolutionary sense alone, gentlemen, I am in favor of Free Trade.
Above on Marx and more at:
http://mailstar.net/classwar.html
The fact that a larger market provides important gains in the form of a more intensive division of labor, and larger absolute size of the various specializations and sub specializations implies the desirability of worldwide free trade. Under worldwide free trade ever producer would be able to regard the entire world as his market. Production could be carried on in each locality on the vastly greater scale commensurate with a world market. Thus the division of labor could reach its maximum possible extent consistent with the existing size of the world’s population and the proportion of it already incorporated into the division of labor within the various national boundaries.
In reality, free trade with nations that do not have freedom ensures a form of labor slightly above slavery. And sometimes, actual slavery.
Free trade ensures that Indonesian slave labor fishing ships face no penalty when Indonesia sells the seafood. Free trade with nations that severely repress any attempt by workers to organize or to negotiate gives you Mexican and Asian factories with a hopeless wage.
If they complain, the factory can be moved to the next country with a teeming underclass. Its a race to the bottom.
The end of Most Favored Nation status in favor of Free Traitor agreements has ended our ability to effect changes in the behaviors of other nations. In fact, in the latest version Cruz brought us, other nations can demand that OUR laws be brought into line with their needs.
Adam Smith made one critical error. A nation with a culture matters to most people. It does not matter to business. Our founders were not idiots. And they selected tariff as THE method of financing government.
And we always speak of free trade and forget one thing. The flip side of that coin is open borders and free movement. In the Milton Freidman view, this is removing impediments for engineers, businessmen, salesmen, capital, etc.
In reality it’s 30 Million plus of Mexicans Africans and camel jockeys that have never used a flush toilet of had an immunization flooding into every corner of America.
It’s time for some nationalism first... until the American people have manufacturing jobs again. And save the lectures about how modern economies don’t do the manufacturing. Ive been to Germany and seen active factories building everything from machinery, to cars, to electronics and everything in between. THEY obviously see a reason to keep manufacturing active.
I heard a fellow on Breitbart Radio this morning state that tariff trade was part of America’s world economy for the first 130 yrs. The heyday of growth.
In some cases up to 40% tariff. A ‘break’ was given to countries that used US registered ships.
Woodrow Wilsos was a big proponent of Free Trade.
His point being Free Trade is NoT a conservative principle.
This info is supposed to be accessed on their website. Haven’t checked
It is almost funny to see that quote from Karl Marx [who was wrong on everything] posted on FR over and over and over again to justify protectionism.
Alas, I fear the irony is lost on the posters.
Are you studying free trade? I found this quote from Friedrich List on free trade awhile ago: “And who would be consoled for the loss of an arm by knowing that he had nevertheless bought his shirts forty percent cheaper? “
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