Free Trade vs Protectionism (user search)
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  Free Trade vs Protectionism (search mode)
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Poll
Question: Which do you believe is the best economic policy.
#1
Free Trade
 
#2
Protectionism
 
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Partisan results

Total Voters: 62

Author Topic: Free Trade vs Protectionism  (Read 13949 times)
republicanism
Jr. Member
***
Posts: 412
Germany


« on: January 12, 2012, 06:11:33 AM »


Between nations who have reached a comparable level of economic progress, free trade should usually be the way to go.

Under different conditions, free trade can be a desaster.
"Free trade" between Germany/USA/Britain and Sierra Leone/Malawi/Angola is, of course, not trade, but an economic massacre.
The African countries desperately need tariffs to be save from European products that flood their markets, but, sadly, IWF/WTO usually don't allow them to enforce such tariffs.
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republicanism
Jr. Member
***
Posts: 412
Germany


« Reply #1 on: January 12, 2012, 02:07:02 PM »

Why is it an "economic massacre"? If it is, how come the Western manufacturing and farming industries are complaining so much?

Because complaining is part of business. Especially if you're a farmer, but also if your a businessman in general.

I call it an economic massacre when we sell parts if our chicken to western Africa so cheap that it destroys their own agricultural market, which is the only sector they have that may be competitive in the near future on the world market. But they need to improve it first, what they can't when they are flooded with our agricultural goods. Therefor, tariffs would help them.
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republicanism
Jr. Member
***
Posts: 412
Germany


« Reply #2 on: January 19, 2012, 11:09:05 AM »

But...that's only happens because we heavily subsidize our agricultural sector. Congratulations, you just made the argument for free trade for me!

Fair enough.

I'*m pretty sure though, that even without any subsidies our industrie and agriculture will compete the third world into the ground.

But at the very last, third world countries should be allowed to implement tariffs as long as the EU and the US subsidize their agriculture. You should agree with that?
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republicanism
Jr. Member
***
Posts: 412
Germany


« Reply #3 on: January 25, 2012, 07:01:54 AM »

Why would they out-compete the third world?

Much, much higher productivity and much, much better infrastructure.

As for the second point, I guess any country is allowed to do whatever. But since the tariff hurts the country itself it's a bit silly and I think overall free trade would be a better solution.

Sadly, many third world countries are not allowed to do whatever they want, because they receive money from the WTO/IWF.
And the western countries, who rule these organizations, force them to open their markets, while they themself keep subsiding their agriculture and industry. Shameful even from a free market capitalist point of view.
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