Posts tagged with: trade

cracked-flag-fragment-america-dividedThe fabric of American society is tearing at the seams. Whether witnessed through the disruptive insurgencies of Donald Trump and Bernie Sanders or the more mundane fissures of pop culture and daily consumerism, Americans are increasingly divided and diverse.

Yet even in our rash attempts to dismantle Establishment X and Power Center Y, we do so with a peculiar nostalgia of the golden days of yore. You know, those days when institutions mattered?

This is particularly evident in the appeal of Mr. Trump, whose calls to burn down the houses of power come pre-packaged with a simultaneous disdain for the power of bottom-up diversity and the liberty it requires. Once the tattered castle on the hill is torched to the ground, we’re told, we will receive a greater castle on a higher hill with a far more deserving king. The scepter will be yuge, and with power restored to the hands of a man shrewd enough to exploit it, surely we will “win” again. (more…)

edmund-burkeThe Republican Party is fracturing on the topic of trade. Alas, in the same corners where free and open exchange was once embraced as a propeller for economic growth and dynamism, protectionism is starting to stick.

In response, free traders are pushing the typical arguments about growth, innovation, and prosperity. Others, such as myself, are noting that the trend has less to do with economic illiteracy than it does with a protectionism of the heart — a self-seeking ethos that wants “economic freedom” only insofar as it poses no threat to the preferred wage, vocation, or plot of dirt.

We have forgotten that work is not about us. It’s about serving others, and adapting that service when the signals say, “yes.”

On this, the “communitarian” wing of conservatism tends to push back, accusing free traders of being overly comfortable with social disruption and displacement, prioritizing efficiency and cheap widgetry over “stability” and “social well-being.”

Such critics would do well to heed Edmund Burke, one of the movement’s heroes. Burke was a staunch supporter of free trade not because he was indifferent to disruption, but because the alternative would cause much, much more.  (more…)

trade-globalization-exchange-collaborationIt’s become rather predictable to hear progressives promote protectionist rhetoric on trade and globalization. What’s surprising is when it spills from the lips of the leading Republican candidate.

Donald Trump has made opposition to free trade a hallmark of his campaign, a hole that his competitors have been slow to exploit. In the most recent CNN debate, Ted Cruz, Marco Rubio, and John Kasich each echoed their own agreement in varying degrees, voicing slight critiques on tariffs but mostly affirming Trump’s ambiguous platitudes about trade that is “free but fair.”

Why so much silence?

Unfortunately, as Tim Carney details at length, voters are biting and swallowing what Trump is peddling, and conservatives are struggling to find solutions that sell. “Conservatives may scoff at this Made in America mindset as economically illiterate,” he writes. “But politically, it seems to be a winner.” (more…)

Working For Our Neighbor“If you are a manual laborer, you find that the Bible has been put into your workshop, into your hand, into your heart. It teaches and preaches how you should treat your neighbor.” –Martin Luther

Christian’s Library Press has now released Working for Our Neighbor, Gene Veith’s Lutheran primer on vocation, economics, and ordinary life. The book joins Acton’s growing series of tradition-specific, faith-work primers, which also includes Baptist, Wesleyan, Pentecostal, and Reformed perspectives.

Veith, who describes Martin Luther as “the great theologian of vocation,” believes Luther’s approach is distinct in approaching vocation as a manifestation of “the spiritual and the physical, transcendence and incarnation, ascent and descent, faith and love, love of God and love of neighbor.” Luther’s theology “shows the interconnections of faith, work, and economics not just theoretically, but practically,” Veith writes, “and discloses how the ordinary, seemingly secular activities of everyday life are essential dimensions of Christian spirituality.”

Beginning with a hearty critique of Max Weber’s classic work, The Protestant Ethic and the Spirit of Capitalism, Veith argues that the Reformation’s influence on capitalism has long been mischaracterized and misunderstood. Although Weber properly identified a variety of psychological and cultural factors, his analysis of the theological and spiritual connections fell remarkably short. (more…)

navy_shipsThe evening news reports there has been a complete blockade of the U.S. On the East Coast of the United States, Russian forces have instituted a naval and air blockade, similar to the one being imposed by China on our West Coast. A similar blockade has been set up on the borders of Canada and Mexico.

The blockade is somewhat porous. People are allowed to pass through freely (but only if they are not trying to enter the U.S. illegally). Exports from the U.S. also are unhindered. But all imported goods from every nation on earth are being kept out.

What would be your reaction? Well, naturally you’d cheer. This is great news! Someone has finally stopped the “invasion” of foreign products into our homeland. Without cheap imports flooding our market prices will have to rise, which means increased wages and better jobs. Factories will have to open since everything will need to be made in the good ol’ US of A. Unemployment will plummet since the demand for workers will spike. Our economy will soon be booming!

Wait, what’s that you say? You don’t think it’s a good idea? You say such provocation would be an act of war?

Okay, what if the blockade was limited. Instead of completely keeping out foreign goods, the blockading countriesmerely require importing countries to pay a “toll” of between 10 and 40 percent. And to keep the peace, the blockaders even give the money collected from the tolls to the U.S government. That would be almost as good, wouldn’t it? Maybe even better?

No? You still say the blockade would be an act of war? That it’d make us all worse off than before?

Of course, you’d be right. A naval blockade by foreign countries would hinder, not help, our economy. So why do we allow in peace what we oppose in war?

That was the question asked in the 19th century by the American economist Henry George. In his book Protection or Free Trade, George explained how voluntary governmental restrictions on trade are the same as blockades in a time of war by foreign nations:
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23-VIEW-master675Under the feudalistic societies of old, status was organized through state-enforced hierarchies, leaving little room for the levels of status anxiety we see today.

For us, however, status competition ranges wide and free, leading to multiple manifestations and a whole heap of status signaling.

Such signaling is as old as the free society itself, of course. Whether sending their children to fancy classes and fencing lessons, accumulating ever-expensive luxury goods, or boasting in the labels of their fair trade coffee and the nobility of non-profit activism, aristocrats have always found ways to signal their superiority.

Yet these preferences have shifted over time, the present form of which is carving out its own unique space. In a recent report from the Adam Smith Institute, Prof. Ryan Murphy explores the situation, noting that while past generations were more concerned with “conspicuous consumption” and “keeping up with the Joneses” – chasing faster cars and bigger diamonds – the current pursuit of status has adapted toward “conspicuous authenticity.”

We are now seeing a “new status signaling,” Murphy observes, where society has “moved beyond associating ostentatious displays of wealth with high status,” opting instead for behavior that signifies we are above and beyond such base behavior. (more…)

In Leonard Reed’s famous essay, “I, Pencil,” he marvels over the cooperation and collaboration involved in the assembly of a simple pencil — a complex coordination that is quite miraculously uncoordinated. 

In a short video from economist Alex Tabarrok, the same lesson is applied to Valentine’s Day roses:

“Behind every Valentine’s Day rose, there’s an extensive network of people from all over the world,” says Tabarrok, “from the farmer to the shipper to the auctioneer to the retailer—all cooperating to produce and transport roses from field to hand in a matter of days.”

But though these countless creative partners are surely acting out of some degree of self-interest, and though (in this case) they are working to enable and empower what we presume to be “loving” exchanges, there is something deeper going on throughout the activity. (more…)