Download I would like to begin not with logic, facts, or reasoning, but with

I would like to begin not with logic, facts, or reasoning, but with emotion. I, like
everyone else, experiences emotions when reading or hearing about the topic of free
trade, and these do not always line up with what I believe would necessarily be the best
for the country. Since many of our decisions are indeed based on emotion, and not logic,
I think this is actually a good place to start this discussion. Also, with this topic being so
prominently featured in this year’s presidential election, there is certainly no shortage of
strong feeling on the matter.
I am a traditional, free trade conservative who feels that the government should
provide a framework and a few regulations for the national economy, and then get out of
the way. However, I am also fiercely patriotic who wants my country to be great. I never
thought that these two positions would come in conflict with each other, but in this
election they have. When, for example, President Donald Trump talks about how
“Almost everybody takes advantage of the United States [In trade]”, that really resonates
me. Rising up within me, I feel that it is our patriotic duty to rectify this imbalance. This
imbalance is discussed at length by Pat Cgoate and Juyane Linger, but more about that
later. However, once the patriotic zeal fades away, I am left with the realization of what
rectifying this problem will require. It will require us to give up some of the foundational
principles of our nation. It will require a stronger government, a larger government, and
more government control. The government will again be in the business of picking
winners and losers. Sure, this may make us more powerful, it may make us wealthy; but
will it make us great?
According to Pat Cgoate and Juyane Linger “The 40-year-old GATT now covers
less than 7% of global commerce and financial flows. More important, world trade is no
longer dominated by the free-trade economies. Today, nearly 75% of all world commerce
is conducted by economic systems operating with principles at odds with those of the
United States”. If America wishes to continue to be the dominant economic power, this is
clearly an issue. As they point out, the free market system worked well when only
America and the U.K. were dominant economic powers, and free movement of goods
benefitted them. This is clearly no longer the case. Many countries today have at least a
partial government control of their economies, which helps protect and grow certain
industries. To combat this, the authors suggest that we quit relying on a dogmatic free
trade policy, and instead negotiate individual agreements with individual countries. In
these agreements, we could make sure that our goods and services receive the same free
treatment in their country as theirs do in ours. This “Fair trade” as it is, is incredibly
appealing. A fair deal is something that is very hard to have a problem with. In principle,
I support a fair deal; however, it is the means to gain that deal which I am apprehensive
about. For one, the government would have a massive increase of power over the private
market, as they would be able to choose what industries would be given protection under
deals, and what would not. Secondly, this would make the private sector increasingly
reliant on the government. Without the government, and without these deals, companies
would be at a massive competitive disadvantage. Countries that have no problem with
this level of government influence can gain massively from these agreements. However,
we must ask ourselves if we want to be like most countries. America has a place among a
precious few countries that have a long standing culture that resists undue government
influence. This is, what many would argue, is what made us great in the first place.
Therefore, we must determine what is more important. Is our freedom, or material gain
and power, the thing that makes America great.
There are some who would contend that we can have both. Many believe that free
trade will actually help our economy in the long run. According to Arnold C. Harberger,
“International trade raises the level of GDP in both the importing and exporting country
but not the rate of GDP growth.” Free trade does indeed raise efficiency and stimulates
production. Over time it increases how much an economy is able to produce, but does not
necessarily how much it does produce. Therefore, by utilizing free trade, America could
be increasing its potential GDP. However, potential GDP does not create jobs and amass
wealth. If other countries are indeed getting a better deal than us in trade, it is not going
to help our economy. Our respite from our current situation can only be solved two ways.
One, we could convince other countries to adopt free trade. Then, in theory, everyone
would benefit. However, why should a country abandon a system that benefits them, and
harms us? Therefore, this will most likely never happen. Second, we could simply adopt
a system that was proposed by Pat Cgoate and Juyane Linger. This would place us on an
equal playing field with other countries, but would force us to possibly compromise some
of our underlying principles.
All said, I think this comes back to emotion. The logic and the facts certainly
point us to adopting less of a “Free trade” and more of a “Fair trade” approach. In the end
however, it comes down to how you feel. Each individual person must decide what is
more important for the long term success of our country. Is it more important for our
country to be wealthy and powerful? Or is it more important for us to be free of
government influence? This is certainly a question that I struggle with. It is also a
question I have not solved, simply by writing this paper. As I close, I am no closer to
figuring out what is more important to me. However, we will have plenty of time to think
on this issue, as I am sure this will be central to the new administration in the next four
years.
-Shiloh Kamrath
Bibliography:
"Trump Says China Gets an Advantage from the Trans-Pacific Partnership." @politifact.
N.p., n.d. Web. 01 Jan. 2017.
"Tailored Trade: Dealing with the World as It Is." Harvad Business Review. N.p., n.d.
Web.
Mccombie, J. S. L. "Harrod, Economic Growth and International Trade." Economic
Dynamics, Trade and Growth (1998): 212-51. Web.