[quote]orion wrote:
Gambit_Lost wrote:
orion wrote:
valiance. wrote:
In addition it’s often in a nation’s interest to restrict free trade (see tariffs, govt subsidies for example)
Never happened.
Of course tariffs and subsidies do happen, they just never have a favorable outcome for “the people”, only for some interest groups that have highjacked the government.
Again, it cannot be any other way, because if people had spent their money any other way, had the government not intervened, the outcome is suboptimal.
Because, left alone, people tend to spend their money exactly the way they think is best for them, thereby maximizing utility.
If everyone was perfectly informed this would be true. If there were no history this would be true. If there were no power structure. Basically, your theory is right, but the reality doesn’t always fit.
Basically, given “other factors” a reasonable govt can use those tools to promote what they consider to be the common good. For example, should we remove trade barriers for manufactured goods from certain nations and agricultural good from other? Of course… but should one be done independently of the other? Depends on if you’re producing manufactured goods or agricultural products, doesn’t it?
You can also see it another way.
You say the existing power structure is abused and yet you want to build an even bigger power structure and hope that it will somehow not be abused?
How likely is that?
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No, I want free and fair trade. We’ve been moving in that direction for a long time, I think we should continue to do so. But I also think “fair” is important. Farm subsidies in the first world should be removed along with tariffs in the third. I think this would be best for everyone. I don’t want to see one removed and the other not simply b/c American and Europe have got the power.