Philosophy
An anonymous guest writes,
Those on the fair trade side of things disavow this deep religious faith in markets for two reasons, one economic and one ethical. The economic argument contends that the increase in trade that results from opening markets does not positively affect all, but in fact negatively impacts the most vulnerable. Free trade might work, the line goes, if the playing field were level in terms of labor standards and environmental regulation, but this is not the case. As it stands, employers will take the jobs of those who have the fewest other prospects and move them to countries where they can get away with treating the workers the least humane and pollute with impunity. Arguing that those people benefit because this makes plastic goods at Walmart cheaper is missing the larger point. Yes, free trade does benefit some -- those among us with the most already -- but to think that benefiting them will then help everyone else is tantamount to thinking that one could dump gallon buckets of paint over the roof of a house and have it coat the walls evenly. Free trade, on this view, further exacerbates the divide in wealth causing even more to accumulate at the top to the detriment of those at the bottom.
The moral argument is that the move to free trade forces those who have the most reasonable safeguards for workers and the earth in place will then have to weaken them to remain competitive. Doing the right thing puts you at an unsustainable disadvantage, leaving you with the conundrum "do I do the right thing for the people and planet and let them starve or do I harm the people and planet in the name of helping them?" The third option is to insist that everyone do the right thing before they are allowed to play the game, but this is a rejection of free trade.
As for books, the only thing that pops to mind (and it's not a perfect fit) is Beth Shulman's The Betrayal of Work. I know others here (yes, I'm looking at you, Kerry) read a lot more on these issues and may have other suggestions.
- Sex And The Left
Been thinking about sex lately. There were a load of "Summer of Love" retrospectives over the last few months because of the 40th anniversary and lots of talk about hippie lifestyles. What struck me as interesting was the number of ways that the counter-culture...
- The Story Of Cap & Trade
Here in the United States, a large percentage of our population seems to be increasingly obsessed with the 'invisible hand' of capitalism and the 'wisdom' of the free market. Interestingly, many of these folks are also the very same people...
- Free To Choose - The Power Of The Market
The roots of the idea of a free market can be traced back to the Scottish Enlightenment, but perhaps no scholar has done more to promulgate the Utopian dream of a free capitalistic society than the late and influential 20th century economist from the...
- Acta In Europe
"Europe's Internet revolt: protesters see threats in antipiracy treaty"Anger over proposed antipiracy treaty ACTA was expected to bring thousands to Europe's streets today. Supporters say it will better protect intellectual labor, while opponents...
- Charlie Tuna & Horton The Elephant...in Trouble?
International Year of Biodiversity Convention on International Trade in Endangered Species "Ivory and bluefin tuna top agenda at UN wildlife summit" by Richard Black March 13th, 2010 BBC News Sales of ivory and a possible ban on trading bluefin...
Philosophy
Free Trade and Fair Trade
An anonymous guest writes,
"What's the strongest case in the Free trade versus Fair trade argument? Do you a good book to recommend for further review?"The argument on the free trade side is based on idea that economic growth benefits the entire economy. If we eliminate tariffs and other barriers to trade and leave the marketplace to its own design, then it will work with maximum efficiency, relocating jobs to where they produce the most goods at the lowest cost and creating a positive climate for consumers. This will give rise to an increase in economic activity and this causes a multiplier effect that will in turn allow prosperity to spread. If a rising tide lifts all boats, government control over economic behavior between nations is a dam that artificially keeps the tide from rising. By opening the dams and letting the water flow where and how it will, both economies will benefit.
Those on the fair trade side of things disavow this deep religious faith in markets for two reasons, one economic and one ethical. The economic argument contends that the increase in trade that results from opening markets does not positively affect all, but in fact negatively impacts the most vulnerable. Free trade might work, the line goes, if the playing field were level in terms of labor standards and environmental regulation, but this is not the case. As it stands, employers will take the jobs of those who have the fewest other prospects and move them to countries where they can get away with treating the workers the least humane and pollute with impunity. Arguing that those people benefit because this makes plastic goods at Walmart cheaper is missing the larger point. Yes, free trade does benefit some -- those among us with the most already -- but to think that benefiting them will then help everyone else is tantamount to thinking that one could dump gallon buckets of paint over the roof of a house and have it coat the walls evenly. Free trade, on this view, further exacerbates the divide in wealth causing even more to accumulate at the top to the detriment of those at the bottom.
The moral argument is that the move to free trade forces those who have the most reasonable safeguards for workers and the earth in place will then have to weaken them to remain competitive. Doing the right thing puts you at an unsustainable disadvantage, leaving you with the conundrum "do I do the right thing for the people and planet and let them starve or do I harm the people and planet in the name of helping them?" The third option is to insist that everyone do the right thing before they are allowed to play the game, but this is a rejection of free trade.
As for books, the only thing that pops to mind (and it's not a perfect fit) is Beth Shulman's The Betrayal of Work. I know others here (yes, I'm looking at you, Kerry) read a lot more on these issues and may have other suggestions.
- Sex And The Left
Been thinking about sex lately. There were a load of "Summer of Love" retrospectives over the last few months because of the 40th anniversary and lots of talk about hippie lifestyles. What struck me as interesting was the number of ways that the counter-culture...
- The Story Of Cap & Trade
Here in the United States, a large percentage of our population seems to be increasingly obsessed with the 'invisible hand' of capitalism and the 'wisdom' of the free market. Interestingly, many of these folks are also the very same people...
- Free To Choose - The Power Of The Market
The roots of the idea of a free market can be traced back to the Scottish Enlightenment, but perhaps no scholar has done more to promulgate the Utopian dream of a free capitalistic society than the late and influential 20th century economist from the...
- Acta In Europe
"Europe's Internet revolt: protesters see threats in antipiracy treaty"Anger over proposed antipiracy treaty ACTA was expected to bring thousands to Europe's streets today. Supporters say it will better protect intellectual labor, while opponents...
- Charlie Tuna & Horton The Elephant...in Trouble?
International Year of Biodiversity Convention on International Trade in Endangered Species "Ivory and bluefin tuna top agenda at UN wildlife summit" by Richard Black March 13th, 2010 BBC News Sales of ivory and a possible ban on trading bluefin...