Importance Of Fair Trade

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Governments institute protectionist policies in order to promote fair trade. These policies are designed to discourage imports through tariffs, quotas, and other trade barriers, to prevent foreign takeover of domestic industries and markets. The intention is to protect domestic businesses, thereby aiding the domestic economy. Which sounds like a good thing. However, the United States uses its formidable economic power to implement these policies directly hurting foreign economies and indirectly hurting its citizens.
Traditionally, trade is defined as the voluntary exchange of goods or services. This leads to the question: What is fair trade? In 1822, Sen. John Taylor wrote that it is the “free will which constitutes fair exchange.”
Consumers do not voluntarily pay higher prices, but through protectionist policies, governments force them to pay more. Trade barriers give politicians control of the market and allow them to determine where their constituents spend their money. This bastardizes the laws of property rights and impedes liberty. Trade barriers allow the government to take from consumers for the benefit of producers. Fair trade assumes consumers rights are an injustice to the producer. Through protectionist policies, a government forces consumers to support a company that cannot stand on its own. Protectionism is based on the idea that a government will become richer if its citizens are forced to pay higher prices for fewer goods. Every government restriction forces resources to be allocated away from efficient industries. Protectionist policies are harmful to consumers and the economy.
a. Success of countries without CVDs (or free countries) based on Heritage Foundation’s Index of Economic Freedom compared with the country’s per capita GDP. http://www.heritage.org/index/
b. Look at U.S.’s decline on the list and increase of economic troubles.
VII. Ethics
a. Despite the ineffectiveness of protectionism, some argue it is ethical because it protects the jobs of some citizens.
b. Protectionism is unethical because it
i. violates individual rights ii. interferes with the ability to freely

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