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  • FREE TRADE is better than FAIR TRADE.

    3 15.00%
  • FAIR TRADE is better than FREE TRADE.

    17 85.00%
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Thread: Why is FAIR TRADE better than FREE TRADE?

  1. Top | #1
    Veteran Member Lumpenproletariat's Avatar
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    Why is FAIR TRADE better than FREE TRADE?

    Labor Day Tribute to America's crybaby wage-earner victims


    Everyone agrees with Trump, unanimously, that "fair trade" is good and "free trade" is bad.

    Democrats and Republicans alike preach this religion, from the Bernie Sanders and Michael Moore and BLM employer-bashers to the Donald Trump MAGA China-bashers. It's now the universal religious dogma of all the Red/Blue fanatics and crusaders and pundits and idiot masses that American workers are poor victims of "unfair trade" who have to be protected from the greedy capitalist pigs and the dirty foreigners trying to steal our jobs.

    Trump is turning more to this theme as we approach election day, because Americans slurp up this religion, and it seems to have won him just enough votes in the rust-belt states to put him over the top in 2016.

    And Biden/Democrats have no rebuttal to Trump other than to agree with his ideology but also accuse him of not doing enough to promote this crusade to protect the downtrodden American worker victims of "unfair" trade, accusing him of not pandering enough to them and giving them enough protection against the dirty foreign competitors, or even lying when he claims to have "saved" their jobs.

    And yet, no one can give a reason why "fair trade" is better than "free trade" once the slogans are set aside and we just look at the economics.



    So, what is the difference between "fair trade" and "free trade"?

    FAIR trade = higher labor cost = higher cost of production = higher prices = lower standard of living for all consumers.

    FREE trade = more competition, especially wage competition and lower labor cost = lower cost of production = lower prices to all consumers.


    Since FREE TRADE makes everyone better off (except a few uncompetitive workers) -- i.e., increases production and makes even most workers better off because they are consumers who must pay higher prices under FAIR TRADE, why does everyone still preach the religion of FAIR trade, as if it makes the nation better off, when a higher cost of living is not better but is worse? Why does everyone choose a higher cost of living and thus lower living standard?

    The only answer is HATE. It's gut-level, instinctive, hate of employers and desperate job-seekers who are willing to work for less in order to get hired. Or hate directed at those who are more competitive because they would reduce cost, and the FAIR-trade disciple worships only the compensation to workers, with no regard for consumers who have to pay the higher cost. Those who preach FAIR trade disregard the cost to consumers, which is impersonal data, in their mind, as they obsess romantically on the workers, who are a high-profile segment of the economy, as a class separate from non-workers. And class warfare is the essence of the "fair trade" romanticism.


    The FAIR trade devotees fall into two classes:

    1) CRYBABY wage-earners who directly benefit from the higher wage, and

    2) CRYBABY-PANDERERS who obsess on pandering to these crybaby wage-earners and fail to notice that they are making 100% of consumers worse off, which is the whole country, so that virtually everyone is made worse off (though perhaps 1% of workers are crybaby wage-earners who gain a net benefit from the higher wage level, gaining more from the higher wage than they lose because of the higher prices they must pay).


    Definition of "CRYBABY"

    It's reasonable to label someone a "crybaby" who insists on driving up the costs for everyone in order to gain a benefit for him/herself, or for his/her special interest group.


    The fundamental point of FAIR trade is to exclude desperate workers from getting hired, by disallowing them to be hired at the (lower) price employers are willing to pay them. Most of them could get hired if they could offer their labor at a lower compensation level, thus competing with the higher-paid workers who are able to get hired at the higher compensation levels. Not all job-seekers are able to get hired at those higher compensation levels, and so they would accept work at a lower level in order to get hired, since the alternative is no job at all. For them, a low-paying job is better than no job at all. For them, FAIR trade means no job at all, whereas FREE trade would mean getting hired at a lower compensation level, and this is made illegal under FAIR trade. I.e., it's "fair" for those who are able to get hired at the higher compensation level, but it shuts out those who have difficulty getting hired, by making it illegal for them to be hired at a lower price employers are willing to pay them.


    So those who benefit from FAIR trade are the overpaid crybabies who insist on keeping the wage level high, so they are paid higher than they are worth (supply & demand) while shutting out the desperate job-seekers who cannot get hired at that higher compensation level.

    What other benefit does FAIR trade offer over Free trade, other than to pander to the uncompetitive overpaid wage-earners by shutting out those who want to compete at a lower wage level in order to get hired?



    Whatever the economic ideology, it cannot be denied that higher labor cost with no improvement in job performance = higher cost of production and thus LESS PRODUCTION = higher prices everyone must pay and less consumption = lower living standard overall.

  2. Top | #2
    Loony Running The Asylum ZiprHead's Avatar
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    More simplistic babble with far too many words.
    When conservatives realize they cannot win democratically, they will not abandon conservatism. They will abandon democracy.

    Poverty exists not because we cannot feed the poor but because we can't satisfy the rich.

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    Elder Contributor
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    Fair trade is simply free trade with some extra ethical considerations in place. It is naive to think that "free trade" occurs in a legal or ethical vacuum.

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    Veteran Member Lumpenproletariat's Avatar
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    Quote Originally Posted by laughing dog View Post
    Fair trade is simply free trade with some extra ethical considerations in place. It is naive to think that "free trade" occurs in a legal or ethical vacuum.
    It's not "ethical" if it makes people worse off rather than better off. Such as reducing the overall living standard by driving up costs in order to pander to a minority who are uncompetitive.

  5. Top | #5
    Cyborg with a Tiara
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    Quote Originally Posted by Lumpenproletariat View Post
    Quote Originally Posted by laughing dog View Post
    Fair trade is simply free trade with some extra ethical considerations in place. It is naive to think that "free trade" occurs in a legal or ethical vacuum.
    It's not "ethical" if it makes people worse off rather than better off. Such as reducing the overall living standard by driving up costs in order to pander to a minority who are uncompetitive.

    Fair trade does not make people worse off. It minimizes the hoarding and bullying that leaves large numbers with nothing.
    It overcomes the divides like those seen in feudalism, slavery and sweatshops.

    Many people are willing to pay a little more to avoid businesses whose model relies on wage slavery and human misery.
    Other people are fine with overworked minions bringing them their cake.

  6. Top | #6
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    Quote Originally Posted by Rhea View Post
    Quote Originally Posted by Lumpenproletariat View Post
    Quote Originally Posted by laughing dog View Post
    Fair trade is simply free trade with some extra ethical considerations in place. It is naive to think that "free trade" occurs in a legal or ethical vacuum.
    It's not "ethical" if it makes people worse off rather than better off. Such as reducing the overall living standard by driving up costs in order to pander to a minority who are uncompetitive.

    Fair trade does not make people worse off. It minimizes the hoarding and bullying that leaves large numbers with nothing.
    It overcomes the divides like those seen in feudalism, slavery and sweatshops.

    Many people are willing to pay a little more to avoid businesses whose model relies on wage slavery and human misery.
    Other people are fine with overworked minions bringing them their cake.
    More importantly, L's standard (not if it makes people worse off) rebuts his premise that free trade is better, because free trade typically does make some people worse off.

    In economics the argument is that free trade has the potential to make everyone better off but no one argues that it reaches that potential - there are always losers. So, Lumpenprolariat's argument works against free trade as well since it makes some people worse off.

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    Cyborg with a Tiara
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    One thing that “free trade” exploits that “Fair Trade” does not, is the human instinct to accept a job that has you starve more slowly, even if you are still starving.

    Some folks claim that since the person took the job, the employer is doing Good because without that employer the people would have no job. What fair trade says is that if a business relies on slowly starving employees to get their low price, it has no place in human society competing for price against a business that pays a living wage.

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    Fair trade is better because it recognizes an asymmetry in economic leverage, while not leveraging the asymmetry. It recognizes that the only way consent can be achieved is with a symmetrically informed consent.

    We all recognize that asymmetry in power and/or information spoils consent. This is the reason children cannot consent to sex with an adult: an asymmetry in power or information or both. There is no reason this should not extend to countries and state level economics.

    Fair trade is international economics wherein leverage is abandoned for the sake of the party with less power.

  9. Top | #9
    Veteran Member Tigers!'s Avatar
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    I am in favour of bi-lateral fair trade agreements rather than multi-lateral or global. With bi-lateral fair trade you can, as others have noted previously, take into account differences across countries, cultures, strengths and weaknesses etc.

    Fair trade should be a give & take with no parties feeling taken advantage of or signing under some form of duress.
    NOTE: No trees were killed in the sending of this message, but a large number of electrons were terribly inconvenienced.

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    Loony Running The Asylum ZiprHead's Avatar
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    Paying less than a living wage means you feel your right to conduct business is more important than the lives of the workers you employ.
    When conservatives realize they cannot win democratically, they will not abandon conservatism. They will abandon democracy.

    Poverty exists not because we cannot feed the poor but because we can't satisfy the rich.

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