Tuesday, March 7, 2017

North Korea Benefits from Free Trade in America

We should not be surprised Trump flip flops on this.  He never espouses any consistent ideology.

Free markets benefit everyone, including people who are not free.  The power of the free market is unfathomable to man.  This is part of the reason so many despise it and turn away from it.  Think about it!

Quote of the Day from page 43 of F.A. Hayek’s seminal work The Road to Serfdom

The idea of complete centralisation of the direction of economic activity still appalls most people, not only because of the stupendous difficulty of the task, but even more because of the horror inspired by the idea of everything being directed from a single centre. If we are nevertheless rapidly moving towards such a state this is largely because most people still believe that it must be possible to find some Middle Way between ‘atomistic’ competition and central direction. Nothing indeed seems at first more plausible, or is more likely to appeal to reasonable people, than the idea that our goal must be neither the extreme decentralisation of free competition, nor the complete centralization of a single plan, but some judicious mixture of the two methods. Yet mere common sense proves a treacherous guide in this field. Although competition can bear some admixture of regulation, it cannot be combined with planning to any extent we like without ceasing to operate as an effective guide to production. Nor is "planning" a medicine which, taken in small doses, can produce the effects for which one might hope from its thoroughgoing application. Both competition and central direction become poor and inefficient tools if they are incomplete; they are alternative principles used to solve the same problem, and a mixture of the two means that neither will really work and that the result will be worse than if either system had been consistently relied upon. Or, to express it differently, planning and competition can be combined only by planning for competition, but not by planning against competition.”

Bottom line:
-                      Nobody really wants Centralized Control or Socialism
-                      But free markets and socialism work against each other.  So “moderates” mixing the two ideologies will fail.
-                      The best answer is in complete and total free markets and free trade. 
-                      There is no such thing as unfair trade.  All trade is, by definition, fair when it is free.


I saw a great line in this article by Dan Mitchell:

“Foreign aid: When you take the money from poor people in a rich country and give it to the rich people in a poor country.”


Hits the nail on the head.

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