Filed under: Bureaucracy, Capitalism, Domestic Policy, Economy, Free Markets, Freedom, History | Tags: International Trade, Protectionism Doesn't Work, Why It's a Good Thing
From economist Mark Perry st AEI: The quotation of the day on international trade comes from President Ronald Reagan’s radio address to the nation on international trade on August 6, 1983:
The winds and waters of commerce carry opportunities that help nations grow and bring citizens of the world closer together. Put simply, increased trade spells more jobs, higher earnings, better products, less inflation, and cooperation over confrontation. The freer the flow of world trade, the stronger the tides for economic progress and peace among nations.
I’ve seen in my lifetime what happens when leaders forget these timeless principles. They seek to protect industries and jobs, but they end up doing the opposite. One economic lesson of the 1930s is protectionism increases international tensions. We bought less from our trading partners, but then they bought less from us. Economic growth dried up. World trade contracted by over 60 percent, and we had the Great Depression.
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