Tag Archives: free trade

The Truth About Trade Deficits

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For centuries, the mercantilist perspective has had an unfortunately persuasive voice in policy discussions centering on international trade. Essentially economic nationalism, mercantilism ruled yesteryear’s economy with its advocacy of low imports and high exports to retain a competitive advantage in the war-like international market of zero-sums(Ewert, 1996). Although now infrequently championed under the title of mercantilism, this philosophy lingers in the popular fear of trade deficits. Many are led to believe that a deficit in trade exists when one nation

Why Regulations Rarely Fix Anything

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The following was written by Sam Paul, a student at New Saint Andrews College. If you wish to write something for this website, click here. ____________________________________ Senator Mary Landrieu, D-Louisiana, announced proposed legislation that would prohibit airlines from charging passengers for their first check-in luggage. The purpose is to prevent airlines from charging “unfair fees”, while encouraging them to ease up on the carry-on items (Fox News, 11/21/11). This is ludicrous. The legislation simply force airlines to raise prices on their tickets

Does Free Trade Hurt Developing Economies?

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The other day, I was in a class on political economy and economic development in which we discussed whether or not Adam Smith was right about the benefits of free trade when it came to poor nations. Everyone in the room unhesitatingly agreed that deregulated markets in rich Western countries have been much more effective at providing for the material needs of individuals. Yet, when the point was considered that “Third World” nations have been left behind as Western capitalist

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