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.