Should the United States enact and enforce laws that aim to promote “fair trade” and create a “level playing field” for its workers and industries?
While “fair trade” sounds good in theory, in practice, the term is really code for protectionism. Fair trade, as the term is now used, usually means government intervention to direct, control, or restrict trade. Fair trade means government officials decide what Americans should be allowed to buy and what prices they should be forced to pay. Other countries often have a comparative advantage over the United States in a particular industry. Attempts to “level the playing field” by subsidizing the US industry is really a tax on US consumers and only prolongs the economic woes of the industry in question. Related Works: • Antidumping 101: The Devilish Details of “Unfair Trade” Law • The Myth of Fair Trade • The US Antidumping Law: Rhetoric versus Reality • Nailing the Homeowner: The Economic Impact of Trade Protection of the Softwood Lumber Industry (An example of a “fair trade” failure) • The Perpetual Steel Crisis Also see the Cato Institute research on anti-dumping and trade law.
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