Connect with us

News

An Argument Against Free Trade

Editorial Staff

Published

on

I was raised on Milton Friedman as the mother’s milk of economics and I have been an ardent libertarian for many years.

I believed that free trade was an unquestioned good thing, that protectionists were misguided at best and corrupt at worst, and that the French mercantilists-skewered so profoundly by Adam Smith in The Wealth of Nations- were the closest thing to pure evil prior to the publication of Karl Marx.

How then is it possible that I have become an active opponent of free trade?

Let’s be clear about one thing: When I am addressing the subject of free trade, I am not talking about the heavily managed “free trade” that is negotiated in massive government free trade agreements like NAFTA. I am not addressing the imperfect realization of the ideal.

I am, however, talking about the ideal itself. About the legally unhindered free movement of goods, services, and labor across national borders around the world. I am talking about free trade in its pure and unadulterated form.

The way I see it, there are three possible consequences of free trade.

Either unmitigated free trade is beneficial to everyone; it is detrimental to everyone; or it is beneficial to some and detrimental to others.

The neo-classical perspective is that it is beneficial to everyone, even those who appear to be suffering from its effects in the short term. This is the perspective I was taught and it was what I believed, more or less unquestioned, from the time that I read Free to Choose as a child until a few years ago.

The essential problem with free trade is that it is based on an antiquated model that failed to anticipate the possibility of inexpensive air travel and cheap international communications, both of which significantly reduce the natural barriers to the free movement of peoples. This has resulted in negative consequences that were never even remotely envisioned by Adam Smith, David Ricardo, or any of the classical champions of free trade.

These consequences lead necessarily to the following logical argument which must be considered seriously by any advocate of free trade.

1. Free trade, in its true, complete, and intellectually coherent form, is not limited to the free movement of goods, but includes the free movement of capital and labor as well. The”invisible judicial line” which is regarded with contempt by free traders does not magically become visible simply because human bodies are involved. While some free traders recognize the problem and attempt to artificially separate the free movement of goods from the free movement of services, this is not defensible on any of the rational intellectual grounds used to defend the free movement of goods and capital.

2. The difference between domestic economies and the global international economy is not trivial, but is substantive, material, and based on significant genetic, cultural, traditional, and legal differences between various self-identified peoples.

3. Free trade is totally incompatible with national sovereignty, democracy, and self-determination, as well as the existence of independent nation-states with the right and ability to set their own laws according to the preferences of their residents, because it eliminates the ability of nation-states to defend their own borders and populations.

4. Therefore, free trade must be opposed by every sovereign, democratic, or self-determined people, be they American, Chinese, German, or Zambian, who wish to preserve themselves as a free and distinct nation possessed of its own culture, traditions, and laws.

In my next post, I will mathematically prove why the USA cannot possibly permit free trade and hope to remain a Constitutional or coherent nation.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Lifestyle

Top 10 Travel Destinations to the Start the New Decade

Editorial Staff

Published

on

For many, traveling offers an opportunity to disconnect from the everyday and experience new places and cultures. With the beginning of a new decade, it is the perfect time to start deciding your next travel adventures.

When booking your future destinations, consider these spots and tips recommended by travel expert and Bank of America ambassador, Lee Abbamonte, the youngest American to visit every country plus the North and South Poles.

1. Australia

From its deserts to tropical beaches, Australia is a beautiful country to explore. While many people might be familiar with the Sydney Opera House and the unique wildlife, there are many hidden gems in Australia.

“I’ve been to Australia 10 times and I still can’t get enough,” Abbamonte said. “One of my favorite cities is Melbourne. While it’s one of the largest cities in Australia, the heart of the city is hidden and secretive. It comes to life when you visit the alleys, laneways and arcades. The vibrant city has so much to offer: cafes, a unique street culture and street art.”

2. New Zealand

If you are going to New Zealand for the first time, Abbamonte recommends boogie boarding down the sand dunes, hiking up a volcano and visiting the Moeraki Boulders. However, if you are really interested in getting the blood pumping, take a leap from Nevis Bungy near Queenstown. It is among the highest bungy jumping experiences in the world, measuring 440 feet.

3. Mexico

“Mexico City has two of my favorite things – great food and sports,” Abbamonte said. “The street tacos are to die for, and I love going to soccer games at Estadio Azteca.”

In 2020, there will be many festivals to explore. The city is a cultural hub with music, theater, dance and food events throughout the year. While experiencing the festivities, it is also an opportune time to take a step back and enjoy Chapultepec Park.

4. Brazil

One of Abbamonte’s favorite waterfalls is Iguazu Falls located on the border of Brazil and Argentina. While Iguazu Falls might be well known, the falls themselves are truly unique. The waterfall system consists of 275 falls that stretch over approximately 1.68 miles. The Devil’s Throat is the tallest fall with a drop of more than 262 feet.

While traveling internationally can be fun and exhilarating, there are also places throughout the United States that offer memorable activities:

5. Scottsdale, Arizona

If you enjoy being outdoors, Scottsdale is an ideal place to visit. There are many trails to explore in Camelback Mountain, Papago Park and Hole in the Rock. After hiking, follow Abbamonte’s example and golf at The Short Course at Mountain Shadows.

“Scottsdale has some of the most beautiful sunsets in the States, and from The Short Course at Mountain Shadows, I get to enjoy the view while practicing my swing,” he said.

6. Boston, Massachusetts

“I love sports, so I visit Boston regularly for the professional games,” Abbamonte said. “I’m also fortunate that Boston is a beautiful city I can enjoy along the way.”

Boston is one of the oldest cities in the country. Founded in 1630, Boston is filled with history, museums and universities. If you are interested in a more unique attraction, check out the Warren Anatomical Museum, which is one of the last of its kind in the United States.

7. Portland, Oregon

What makes Portland unique are the bizarre and wonderful things you can do when you visit. For example, you can try bone marrow ice cream, stop by Mill Ends Park (the world’s smallest park) or attach your wish to The Wishing Tree.

“Portland is absolutely beautiful,” Abbamonte said. “It has a bit of everything – restaurants, bars, parks – and I enjoy the people watching. Portland has some of the nicest people while maintaining an edgy vibe.”

8. Tampa, Florida

Tampa might be known for its spring break party scene, but it has so much more to offer. For example, the city’s zoos and aquariums provide opportunities to interact directly with animals. Then you can take a break at Clearwater Beach, which is known for its soft, white sand and calm waters.

9. Santa Barbara, California

“I go to Santa Barbara when I want to recharge,” Abbamonte said. “I enjoy the food, walking around, talking to the locals and even watching a football game or two.”

There are wine tours, zoos, beaches, museums and restaurants. While taking in the city, also make time to visit the hidden gems such as Knapp’s Castle ruins.

10. England, Germany, Scotland, Azerbaijan and more

While technically more than one place, these locations have one thing in common: Union of European Football Associations (UEFA) Euro 2020. The international soccer event marks the first time the games will be held across the continent in 12 host cities.

“The year is a big one for sports,” Abbamonte said. “From sporting events in Europe to Japan, it is a fun year for travel and to enjoy once-in-a-lifetime experiences.”

Continue Reading

Business

US Vows 100% Tariffs on French Champagne, Cheese, Handbags Over Digital tax

Editorial Staff

Published

on

Image via Shutterstock
By David Lawder and Andrea Shalal

The US government on Monday said it may slap punitive duties of up to 100 percent on $2.4 billion in imports from France of Champagne, handbags, cheese and other products, after concluding that France’s new digital services tax would harm US tech companies.

The US Trade Representative’s office said its “Section 301” investigation found that the French tax was “inconsistent with prevailing principles of international tax policy, and is unusually burdensome for affected US companies,” including Alphabet Inc’s Google, Facebook, Apple and Amazon.com.

US Trade Representative Robert Lighthizer said the government was exploring whether to open similar investigations into the digital services taxes of Austria, Italy and Turkey.

“The USTR is focused on countering the growing protectionism of EU member states, which unfairly targets US companies,” Lighthizer said. His statement made no mention of proposed digital taxes in Canada or Britain.

The US trade agency said it would collect public comments through Jan. 14 on its proposed tariff list as well as the option of imposing fees or restrictions on French services, with a public hearing scheduled for January 7.

It did not specify an effective date for the proposed 100% duties.

CHAMPAGNE, ROUGE AND GRUYERE

The list targets some products that were spared from 25 percent tariffs imposed by the United States over disputed European Union aircraft subsidies, including sparkling wines, handbags and make-up preparations – products that would hit French luxury goods giant and cosmetics maker L’Oreal hard.

Gruyere cheese, also spared from the USTR aircraft tariffs levied in October, featured prominently in the list of French products targeted for 100 percent duties, along with numerous other cheeses.

The findings won favor from US lawmakers and US tech industry groups, who have long argued that the tax unfairly targets US firms.

“The French digital services tax is unreasonable, protectionist and discriminatory,” Senators Charles Grassley and Ron Wyden, the top Republican and Democrat, respectively, on the Senate Finance Committee, said in a joint statement.

Spokespeople for the French embassy and the European Union delegation in Washington could not immediately be reached for comment.

But prior to the release of the USTR’s report, a French official said that France would dispute the trade agency’s findings, repeating Paris’ contention that the digital tax is not aimed specifically at US technology companies.

“We will not give up on taxation” of digital firms, the official said.

France’s 3 percent levy applies to revenue from digital services earned by firms with more than €25 million ($27.86 million) in French revenue and €750 million (£644 million) worldwide.

The USTR’s report and proposed tariff list follow months of negotiations between French Finance Minister Bruno Le Maire and US Treasury Secretary Steven Mnuchin over a global overhaul of digital tax rules.

The two struck a compromise in August at a G7 summit in France that would refund US firms the difference between the French tax and a new mechanism being drawn up through the Organization for Economic Cooperation and Development.

But Trump never formally endorsed that deal and declined to say whether his French tariff threat was off the table.

Reuters

Continue Reading

benefits

Andrew Yang Wants You to Make Money Off Your Data by Making it Your Personal Property

Editorial Staff

Published

on

Andrew Yang, 2020 Democratic presidential candidate, plans to regulate the tech industry by prioritizing in giving people the right to own their personal data (“data as a property right”), thus allowing them to make money by sharing it with companies. Currently, companies entirely own users’ data – users do not have much control over it.

Yang said, “our data is now worth more than oil” and gave emphasis to the great amount of data people create and how companies make money over it. “By implementing measures to increase transparency in the data collection and monetization process, individuals can begin to reclaim ownership of what’s theirs,” he said.

He also cited a report saying that the collection and use of Americans’ personal data has become a $198 billion industry. Yang believes that people should have more control over their data, such as being able to see how their data is being used and having the freedom to opt out if they choose.

Yang added that we need politicians “who understand technology and a modern way to regulate it,” as reported by Engadget. “In order to regulate technology effectively, our government needs to understand it. It’s embarrassing to see the ignorance some members of Congress display when talking about technology, and anyone who watched Congress question Mark Zuckerberg is well aware of this,” said Yang.

Continue Reading

Trending

Copyright © 2019 The Capitalist. his copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.