Acton Institute Powerblog

The Fair-Trade Fallacy

Share this article:
Join the Discussion:

Let me quickly respond to this week’s Acton Commentary:

While I agree in broad strokes with Dr. Larrivee’s analysis of the questionable assumptions of the fair trade movement, with respect to coffee in particular, I don’t agree that the problem is “low productivity in the countries in which farmers live.” I have previously argued that the source of the issue is in fact too much coffee, so that the market is saturated and cannot sustain high prices given the declining worldwide demand.

Dr. Larrivee later rightly observes that the fair trade system contributes to a situation which “would expand the supply until the price farmers receive dropped back to the subsistence level.” I think, in fact, this has already happened in the case of coffee, and the fair trade movement simply exacerbates the problem.

You can read more about my take on the situation here.

Jordan J. Ballor Jordan J. Ballor (Dr. theol., University of Zurich; Ph.D., Calvin Theological Seminary) is a senior research fellow and director of publishing at the Acton Institute for the Study of Religion & Liberty. He is also a postdoctoral researcher in theology and economics at the VU University Amsterdam as part of the "What Good Markets Are Good For" project. He is author of Get Your Hands Dirty: Essays on Christian Social Thought (and Action) (Wipf & Stock, 2013), Covenant, Causality, and Law: A Study in the Theology of Wolfgang Musculus (Vandenhoeck & Ruprecht, 2012) and Ecumenical Babel: Confusing Economic Ideology and the Church's Social Witness (Christian's Library Press, 2010), as well as editor of numerous works, including Abraham Kuyper Collected Works in Public Theology. Jordan is also associate director of the Junius Institute for Digital Reformation Research at Calvin Theological Seminary.

Comments