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Free Trade VS Protectionism?
in Global

By joecavalryjoecavalry 404 Pts
Do you believe that Free Trade is better than Protectionism?

  1. Live Poll


    11 votes
    1. Free Trade
    2. Protectionism
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  • I support protectionism but I am also a Globalist.

    I am pro-EU, anti-UN, anti-SC.
  • It is the same question as capitalism vs socialism: is freedom more important than security? The answer, as demonstrated historically hundreds times, is the resounding "yes". Trying to control the economy to avoid individual negative outcomes tends to lead to a global negative outcome, affecting everyone, including those the negative outcomes of whom were supposed to be prevented by the regulations.

    If someone overseas offers a better cost-to-worth ratio in their products than the domestic producers, then the answer is not to restrict the goods of the foreign supplier, so the domestic producers have less competition. The answer is getting the domestic producers to improve the cost-to-worth ratio of their products, so they become more competitive and are able to win the competition on the free market.
  • The last book I read that compared the two and seemed to give a sound analysis (Kicking Away the Ladder) made the claim that generally protectionism is good for countries which are industrialising and looking to grow into an economic powerhouse while free trade is better for countries who are already rich. The crux of it came down to comparative advantage and infant industry protection. Rich industrialised countries have a stranglehold on industrialised techniques which add lots of value to commodities and generate large amounts of wealth and income. The comparative advantage of poorer countries is that their wages are far lower so they can out compete when it comes to raw materials. Unfortunately raw materials are generally a low value added good which don't generate much wealth and even if that wealth is invested in a modern industry it is very difficult to start up a new business in say automobile manufacturing and compete with all the established players, they have far too many established advantages to make growing and becoming a successful business likely. Instead what you do is you use tariffs to help balance the scales, making competitors importing into your country less competitive by charging them to do business. This makes their product cost more on the market, makes your own nations product look better and gives it a chance to grow, thrive, find a market and then later expand into a free market once established and able to compete (preferably with countries which haven't developed that industry).

    The book pointed out how in fact US growth and industrialisation (alongside many other countries) was founded on decades of protectionism with the free market strategy only becoming prevalent once a solid industrial base had been established.
  • I believe that free trade is most beneficial. Resources will be cheap in other places and a country can get the best deals on essential resources. A self sustaining country cannot achieve this to the same extent as a free trade country.
  • Protectionism only protects the privileged. The cost of living will go up for everyone and the poor will be forcibly entrenched in their economic class. The middle class in the US has been too comfy for too long. A new elite will rise!
  • A midpoint between the 2 is probably the best thing. Free trade is unstable, look at the crisis of 2008 for evidence. However, I think protectionism is too controlling. So yeah, somewhere in the middle.
  • We have to keep jobs in America.
  • piloteerpiloteer 272 Pts

    Then we will keep racism and elitism in the US!!!!
  • edited March 9
    I believe countries should trade with whoever they want to trade with without Unions like the EU stepping in
    Sovereignty for Kekistan
  • MayCaesarMayCaesar 1595 Pts

    What do you mean by "countries" though? There is a very large difference between the governments being able to establish any trade rules they want, and the individuals being able to trade with whoever they want.

    For example, I want to trade with my friend from Germany, but their government says, "A-ha, contribute to our federal budget first!" Whose trade rights should trump here: my friend's, or her government's? Both are a legal part of the country named Germany, but their interests clearly collide.
  • searsear 104 Pts
    " ... trade wars are good, and easy to win." Donald J. Trump @realDonaldTrump

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