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To: Entrepreneur

what about intl trade between a rich country, even with no growth, and a poor country? just opening up trade would be the easiest way to reduce global poverty


5 posted on 08/09/2007 10:05:39 PM PDT by ari-freedom (I am for a strong national defense, free markets and traditional moral values.)
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To: ari-freedom

I’m all for trade, but international trade is an indirect answer to the question. Economic growth is the direct answer. International trade reduces poverty when it results in economic growth.

If we have a certain level of international trade today, cutting it would reduce growth and increasing it would generate more growth. Maintaining the level does nothing to increase growth, but it is international trade.

The outcome of economic growth is general prosperity. Prosperity is desireable, right? So, things that hinder prosperity are undesireable.

Increased trade, whether domestic or international, facilitates growth. This is why steps to restrict commerce must necessarily be bad.

Tariffs and quotas are not the only way government restricts commerce. Taxes on energy and carbon are pretty good tools to restrict commerce. Price controls and price mandates (e.g., minimum wage) restrict commerce. Any attempt to control commerce restricts it.


6 posted on 08/09/2007 10:41:57 PM PDT by Entrepreneur
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