Why Free Trade is good for the Economy
What is free trade? Free trade is “international trade left to its natural course without tariffs, quotas, or other restrictions.” As of right now the United States and China are guilty of not trading freely; however, most of the blame could be put on the United States for putting tariffs on certain products that come from China. For many years free trade has been scrutinized on whether it is actually beneficial to the economy or harmful to the economy. Many economists have different views on free trade and some big controversies have come from the arguments they have made to each other. A few of the reasons free trade is beneficial are that it helps the economy grow and prosper as well as improves the lives of everyone and also helps producers create their products at low costs. Honestly, I feel that we should support free trade because there are a lot more benefits than people actually think. In this essay, I will be arguing why free trade is really beneficial and almost vital to having a good economy.
My first point is how free trade improves everyone’s lives that are involved in the process of trading freely. Arthur Foulkes, a writer from The Freeman, states that, “The magic of trade allows us to improve our lives while improving the lives of other” (1). Foulkes is talking of how he tried to teach fifth graders some of the qualities of trading freely with others and claims that, “As long as the people trading do so voluntarily, trade is always a win-win proposition” (1). By stating this Foulkes means that as long as people are not forced into or paying for trade then everyone wins that is involved in the trade thus making everyone’s life better off. Arthur Foulkes makes many good points throughout his article in making free trade seem really beneficial to the economy. Simply put if people had to pay a lot more for a product that product would not be nearly as popular as one that is produced and priced very low. That product that is priced low will be more effective in the long run because plenty of people will buy that product which will create more profit for others. When other countries see how not having tariffs on products makes their country better off, they will then understand part of “the magic of free trade” (1).
Marian Tupy, a researcher for the CATO Institute, states that, “Trade allows consumers to benefit from more efficient production methods” (1). Tupy also says that, “Lower production costs lead to cheaper goods and services, which raises real living standards” (1). By making this claim Tupy means that by producing something at a low cost makes the product cheaper, but also raises the living standards because more people will be able to buy that product since it is on the market at such a low price. Milton Friedman and Rose Friedman, writers at the Hoover Digest, wrote, “Protection really means exploiting the consumer” (1). They are completely right in saying this because with...