Posts tagged with: International Trade

lonely-workerWhen it comes to free trade, critics insist that it hurts the American worker — kicking them while they’re down and slowly eroding the communal fabric of mom-and-pops, longstanding trades, and factory towns. Whether it comes from a politician, labor union, or corporate crony, the messaging is always the same: Ignore the long-term positive effects, and focus on the Capitalist’s conquest of the Other.

Trouble is, the basic logic of such thought leads straight back to the Self.

I recently made this point as it pertains to immigration, arguing that such notions of narrow self-preservation give way to our basest instincts and are bad for society as a whole. But it’s worth considering a bit more broadly, as well. For if the point is to defend the Small and the Local for the sake of The Great and Enduring Bubble of American Industry, at what point is this community of workers too big, too specialized, and too diversified for its own countrymen?

At what point are the Texans getting “unfair” growth compared to the Californians, or the Californians compared to the Oklahomians? If this is all as dim and zero-sum as we’re led to believe, what must we do to prevent our fellow productive citizens from harming their fellow countrymen via innovation and hard work? What bleak, self-centered reality dwells at the end of such logic? (more…)

tppThe controversial Trans-Pacific Partnership (TPP), backed by many Republicans and President Obama, hit a snag Tuesday when key Democrats spoke out against the agreement.

What exactly is the TPP? It is a free trade agreement with 12 nations (including China and Japan) that purports to increase economic growth, jobs and free trade. However, there is much opposition in Congress.

Leading opponents of the measure in the Senate have pushed for additional protections for U.S. workers and address concerns about alleged foreign-currency manipulation by China that makes American products too expensive.

“It’s a betrayal of workers and small business in our communities to pass fast track, to put it on the president’s desk without enforcement  … and without helping workers,” Sen. Sherrod Brown, D-Ohio, told The Washington Post.


Blog author: ehilton
Monday, May 4, 2015

global shopping cartAt The Stream, Anne Bradley writes about the freedom that free trade brings. Why does free trade matter?

  • We live in a world of scarcity: we have unlimited wants and limited means (resources) to satisfy those wants.
  • As individuals, we aren’t good at producing everything we need to survive. We are limited in our talents and opportunities.
  • We flourish when we are free to trade the things we are better at producing for the things we are not as good at producing.


Andy Warhol

Andy Warhol

AEI’s Arthur Brooks offers up an interesting take on solutions to poverty. He thinks the key lies in “boring things,” and his inspiration is artist Andy Warhol.

I often ask people in my business — public policy — where they get their inspiration. Liberals often point to John F. Kennedy. Conservatives usually cite Ronald Reagan. Personally, I prefer the artist Andy Warhol, who famously declared, “I like boring things.” He was referring to art, of course. But the sentiment provides solid public policy guidance as well.

Warhol’s work exalted the everyday “boring” items that display the transcendental beauty of life itself. The canonical example is his famous paintings of Campbell Soup cans. Some people sneered, but those willing to look closely could see what he was doing.

Warhol’s critical insight is usually lost on most of the world.


SONY DSCJapan and Australia recently signed and passed a trade agreement that abolishes or reduces some tariffs on their highest grossing trade items: beef and dairy from Australia and electronics from Japan. State officials as well as the media have branded this a “free trade agreement;” however, this is actually an example of a “Preferential Bilateral Trade Agreement.” While this is not as desirable as free trade agreements are, it is certainly a step in the right direction. Trade is almost always mutually beneficial provided that neither party is coerced ­­­­­– if it were not, then trade would never take place. Because of the international success of free trade agreements in that region, China is being forced to keep up by becoming more competitive in the international market.

Early this month, China met with South Korea to begin drafting a new bilateral trade agreement. The result is the Won-Yuan trading market in Seoul, which will be complete by the end of the year. This will enable South Korea to trade with China and not rely upon the dollar to do so, thus accelerating trade between the two countries. Up until this agreement passed, the Korean Won was not directly convertible to the Chinese Yuan, requiring the two countries to find another currency as the medium of exchange, specifically, the U.S. dollar. The agreement illustrates that China is increasing the economic freedom of the country in an attempt to boost its wealth and trade efficiency. Acton’s director of research, Samuel Gregg recently discussed transitions to more economic freedom and the ensuing religious freedom that comes with that. Gregg states:

Once you grant liberty in one area, it’s hard to preclude freedom from spreading to other spheres. Economic liberty, for instance, requires and encourages people to think and choose freely. Without this, entrepreneurship is impossible. It’s challenging, however, to limit this reflection and choosing to economic questions. People start asking social questions, political questions, and, yes, religious questions. And many Chinese have decided Christianity is the answer to their religious ponderings.

China has the experienced benefits from economic deregulation experiments, such as in Hong Kong, and the country as a whole seems to be headed down a very similar path. Liberty in China has had a direct connection to economic improvement. The government seems to have had a proclivity to allow such freedoms in order to attain wealth. By lessening trade restrictions, they are crafting a tomb for their socialist regime.

Thanks to the trade act, China is allowing for religious freedom to take hold as Gregg points out. China is still one of the most religiously repressed countries at this time, which is continued only due to the government’s power over it.  With the wane of the Chinese government’s power, there will be a more vibrant religious and cultural exchange that comes naturally with trade.  When there are multiple faiths and ideals, ideas are challenged and thoughts are provoked. Truth is often the result, and liberty follows, whether it be economic, cultural, or religious. In this particular instance, North Korea sees the trade agreement as an attack.  One stratagem countries such as North Korea employ is isolation. The North Korean people know little more than what the government tells them, and they are only aware of the culture that the government deems appropriate.

The days of the Chinese socialist state are numbered. Chinese people are ready for change, as can be seen in their willingness to adapt to more Western methods of thinking and ideals such as the growing respect for personal liberty and free markets. If China is careful about the transformation, and realizes what is happening; it could become one of the wealthiest countries in physical capital, knowledge, culture, and liberty. It remains a country to keep a careful eye on over the next decade.

comparativeadvantageNote: This is the latest entry in the Acton blog series, “What Christians Should Know About Economics.” For other entries in the series see this post.

The Term: Comparative advantage

What it Means: The ability of an individual or group of individual (e.g., a business firm) to produce goods or services at a lower opportunity cost than other individuals or groups.

Why it Matters: There is a story of the distinguished British biologist, J.B.S. Haldane, who found himself in the company of a group of theologians. On being asked what one could conclude as to the nature of the Creator from a study of his creation, Haldane is said to have answered, “An inordinate fondness for beetles.”

When we examine creation to uncover what it reveals about the character of God, one of the things we discover time and time again is the Creator’s fondness for diversity. Like Haldane, we can see this by looking at biology (e.g., there are more species of beetle than birds or mammals combined). But we can also find it when we turn to economics.

A primary example of God’s enthusiasm for diversity is the concept of comparative advantage. While the definition of the them makes it sounds dull and wonky, comparative advantage is a beautiful, theologically profound norm of creation.

Fully appreciating the nuances of the ideas requires timely reflection. But understanding it can be achieved when a few minutes. In this brief video, economist Donald J. Boudreaux does a masterful job of explaining how, when combined with trade, comparative advantage improves human communities.

On Monday, I linked a podcast that Ancient Faith Radio host Kevin Allen did with Metropolitan Antony, primate of the Ukrainian Orthodox Church in the United States, about the ongoing crisis in the Ukraine. Allen has followed up with another interview, this one with Ukraine expert James Jatras, a former U.S. diplomat, U.S. Senate staffer and a member of the American Institute of Ukraine. Jatras talks about a number of issues, including the legal basis — or lack thereof — of the current government in power, deep seated government corruption on all sides, the prospect for elections, Church-State relations, and insights into Ukraine’s trade relations with both the West and Russia. The current situation, he warns, is fraught with risks on all sides.

“Will they be able to hold elections?” he asks. “Will violence break out in other parts of the country? Let’s hope not. I think ultimately a lot of this may be decided by the economy … Whom do you even send the aid to in Ukraine? I don’t think there will be much aid coming to Ukriane from the West. At some point they’re going to turn back toward Russia.”

Jatras continued: “I think somehow, the Europeans especially, and the Russians need to work out some understanding between themselves and … see if they can help promote reconciliation among Ukrainians. And that’s going to be a very tall order.”

Listen to “Ukraine – Another Perspective” on Ancient Faith Radio.

If you’ve raised multiple children, you’ve dealt with sibling bickering, particularly if said children are close in age. With a three-year-old boy and a two-year-old girl, both just 13 months apart, our family has suddenly reached a stage where sibling play can be either wholly endearing or down-right frightening. Alas, just as quickly as human love learns to bubble up and reach out, human sin seeks to stifle and disrupt it. If that’s too heavy for you, “kids will be kids.”

twotoddlersfightingThe areas of contention vary, but most of it comes down to that age-old challenge of sharing, or, as others might frame it, the classic economic problem of scarcity. There is only one fire truck, one soccer ball, and one Buzz Lightyear, even when, in reality, there may be two or three or four. If Toddler X wants to play with Toy Z, no matter how many alluring gizmos and gadgets sit idly by, Toddler Y will all of a sudden long for Toy Z as well. Did I mention the Fall of Man?

My wife and I have done our best to teach proper behavior, maintain order, wield discipline accordingly, and love and hug and encourage along the way. When it comes to sharing, it’s no different. We promote generosity, emphasize patience, teach to inquire politely about the prospects of “collaborative consumption,” seize items when peace is rendered impossible, enforce property rights and ownership where fair and applicable, and so on.

Yet, as any parent knows, toddlerhood is characteristically suited to making a mockery of one’s parenting philosophy, whatever it may be. Just when you think you’ve trained your child to sit quietly when silence is appropriate — teaching manners, establishing authority, setting boundaries, padding the circumstances with (sugary) incentives, etc. — junior will kindly decide that he’d rather forget about all that and shout something about lavatories or Dad’s big bald head. (more…)

Samuel Kampa recently reviewed Victor Claar’s monograph, Fair Trade? Its Prospects as a Poverty Solution. Kampa begins by commenting on how quickly the “fair trade” moment has gained popularity, especially among the college and post-college aged, but also in the church community. He says that young people “are doing one thing right: expressing sincere concern about world poverty.  If this concern can be channeled into effective action, great things can happen.  Of course, effective is the key word.”

First, he offers a short list of reasons, given by fair trade advocates, why the fair trade movement is necessary:

1) Many farmers and workers in the international community receive very low prices for foods and commodities and are forced to live on less than $2 a day.
2) Many of the foods that Western consumers eat have been harvested by grossly underpaid farmers and workers.
3) The fact that Western consumers benefit at the expense of impoverished farmers and workers is both unfair and morally undesirable.
4) Agencies like Fair Trade USA guarantee fairer prices for crops and commodities, vastly improving the quality of life of farmers and workers.
5) Fair trade products are more expensive than non-fair trade products, but fair trade farmers and workers are receiving fairer prices.
6) Fair trade materially benefits the lives of impoverished farmers and workers at little cost to the consumer.
7)  Therefore, consuming fair trade products is morally preferable to consuming non-fair trade products.

Kampa explains Claar’s conclusions about fair trade: “Far from improving the lot of the poor, fair trade actually hurts non-fair trade farmers, keeps fair trade farmers in relative poverty, and diverts money from more efficacious charitable endeavors.” Kampa offers the two main critiques against the movement from the monograph as: “(1) Fair trade economically damages non-fair trade farmers. (2) In the long term, fair trade does more harm than good to fair trade farmers.” He then points out that “if true, [these two critiques] damage premises 4-7 in the pro-fair trade argument outlined above.” (more…)

Today at Ethika Politika, I critique David Bentley Hart’s recent (non-)response to the critics of his attack on natural law in public discourse last month, appearing in the most recent issue of First Things. My article, “Hart’s (Non-)Response to His Critics: Trying to Have It Both Ways?” is a response to Hart’s recent article, “Si Fueris Romae.”

While Hart’s most recent article may seem unrelated, it starts to sound remarkably similar to his article on natural law from last month about half way through. It is this convergence between the two that I examine and critique.

Ultimately, Hart seems to be trying to “have it both ways” when it comes to natural law. I find this to be particularly evident from his conclusion, in which he criticizes US policy toward China, writing,

Decade upon decade, we hear of the arrest, imprisonment, torture, and murder of China’s religious minorities (house-church Christians, Tibetan Buddhist monks, and so on), of the cruel measures taken to enforce the nation’s one-child policy, and of countless other chronic atrocities, but our response consists in little more than a sporadic susurrus of disapproval, just loud enough to flatter ourselves that we have principles but not so loud as to allow those principles to interfere with fiscal or trade policy. We try to shame the ruling party with pious panegyrics on “human rights,” as though the concept had any appreciable weight outside the cultural context that makes it intelligible, but we buy and borrow from the party, and profit from its policies, without hesitation or embarrassment. I think the government of the PRC might be pardoned for concluding that our actions, and not our words, indicate where our true values lie.

While at Ethika Politika I critique his reliance upon the concept of natural rights even while claiming that only our “cultural context … makes it intelligible,” there is another point to consider here. Putting aside the inconsistency of his principles, would his recommendation — more restricted “fiscal or trade policy” — really have the effect that he hopes? (more…)