free markets? What free markets?
This morning the BBC's main headline is EU farm subsidies. (The US has farm subsidies as well, so it's relevant to both sides of the pond.) It just goes to remind us that we really do not have a free market where it matters most: in food and people. There is no free market in food (we have subsidies, import restrictions, etc.). And there is no free market in people (most people cannot choose their own country).
A partially free market is not a free market at all. How can someone compete when they are chained, or their competitor is subsidized?
It is a simple point but one that is worth remembering. The world has not yet tried free markets where it matters - with food and people. Whatever else we blame for poverty and inequality, we cannot blame the market.
posted by Chris Tolworthy at 7:42 AM
2 Comments:
A most excellent observation, my good man. Also, everyone in the U.S. claims to be for free trade unless it gores their ox. The U.S. Senate today passed a trade deal with Central America. My own Senators voted against it; they don't want cheap Central American sugar beating out the local stuff. However, our local port does huge trade with C.A., and presumably would benefit. So maybe the sugar industry out-talked the shipping industry when they were lobbying the politicians.
Thanks for the info - and sorry it takes me so long to reply! Free trade reminds me of Gandhi's famous statement on western civilization. Question: "Mr Gandhi, what do you think of western civilization?" Answer: "I think it would be a good idea." I feel the same way about free trade in the west - we talk a good fight, but where it matters we quietly set up barriers.
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