Free Trade, Tariffs and Quotas

20/12/2024 9 min Temporada 4 Episodio 17
Free Trade, Tariffs and Quotas

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Episode Synopsis

Send us a textIn this episode, Rik from Planet Vulcan demonstrates that the notion that international trade amounts to warfare that someone wins and someone loses is another of those pervasive undead ideas on Planet Earth that keep rising from the grave, wandering the land and eating brains.In truth international trade is an unalloyed benefit to consumers in all countries simultaneously, both because of comparative advantage and because it subjects producers to greater competition.  And while it's generally true that consumers are also producers, it's also generally true that what the typical Earthling producer loses by having to face competition is far less than what the typical Earthling consumer gains as a result of free trade, especially when you consider the long-term systemic effects of tariffs and quotas:  stagnation and decline.Protectionism ought to be regarded as anti-social and uncivil.