What protectionists of the 1930s missed is something that Steve Bannon, Peter Navarro and Donald Trump miss today: if the world’s producers can’t sell to us, they also can’t buy from us. While U.S. producers exported $5.2 billion worth of goods in 1929, by 1933 exports had plummeted to $1.7 billion. They are because there are always infinite unmet needs in the world that individuals and businesses are feverishly trying to meet. Free trade is merely an acknowledgment that the more work is divided up among individuals, the more that individuals can specialize. Free trade is merely an acknowledgement that there are things we individuals positively hate doing.
Source: Forbes April 22, 2018 12:56 UTC