Free Trade

THE CASE AGAINST 'FREE TRADE' This essay suggests that the concept of 'free trade' is fuzzily defined and possesses both theoretical and practical flaws which render it unusable as a rational basis of government policy making. [For alternative national trade policies, see http://www/mkeever.com/essay] 'Free Trade' Defined 'Free trade' seems to mean that trade between countries occurs with no government regulation or restraint. Or, in other words, no quotas, licenses, taxes, safety …

…or trample on local concerns while pursuing the lowest cost and widest markets possible. Sadly, some local governments actively pursue international companies by suppressing local practices which might cost more. Since exporting firms in global competition face basically flat demand curves, they must meet the price of the lowest cost producers or fail. Governments which support 'free trade' allow this to occur with resulting misery for their population. This is a legitimate ground for revolution.