192 The Necessity of Free Trade
Introduction
The argument of this essay is that the United States must adopt a policy
of full free trade. In order to promote the public good it must completely
eliminate “protective” measures like tariffs and quotas. These protect only
domestic producers from foreign competition. Instead of protecting do-
mestic consumers, trade restrictions harm their economic interest and vio-
late their right to buy without government involvement. In today’s global
economy, it is essential to maintain barrier-free exchange in the use of the
world’s scarce resources. Protectionism reduces both absolute and com-
parative advantage and causes damaging counter-trade policies. This is aside
from the fact that it can cripple domestic industries.
In the past, international trade was restricted by high transportation
costs. These costs made local production for local consumption efficient
for many goods and services. Under those conditions, government restric-
tions on trade had fewer widespread effects than they do today. With im-
provements in technology, the cost and difficulty of transportation and
communication has become less important with more goods and services
being traded to the mutual benefit of buyer and seller. Because of these
innovations, the harm done by government restrictions on trade has be-
come more pronounced on the individual consumer. Our argument is
that a level of “protection,” that may have done little harm at one time,
now has wide-ranging consequences because of the modern phenomenon
of global economic interdependence.
The Necessity of Free Trade
Walter Block, Joseph Horton, and Debbie Walker
Department of Economics and Finance
University of Central Arkansas
192
Journal of Markets & Morality 1, no. 2(October 1998), 192-200
Copyright ©1998 Center for Economic Personalism