Home
/
RELIGION & LIBERTY ONLINE
/
Fair Trade: Rhetoric and Reality
Fair Trade: Rhetoric and Reality
Sep 30, 2024 8:12 AM

The NYT Freakonomics blog notes that the Fair Trade movement does not exist independently of the laws of economics:

But the problem with Fair Trade coffee is that as the program scales up, the alternative market ethics it wants to sustain collapse. Inevitably, the Fair Trade market es subject to the same laws that drive the modities market. When the price of coffee drops, the appeal of Fair Trade’s price support lures growers into the cooperatives that sell coffee under the Fair Trade label. As poor growers rush into Fair Trade agreements, the supply of Fair Trade coffee rises. Protected by the price floor, the Fair Trade coffee remains inflated despite flagging demand. What Fair Trade importers thus end up doing with the excess Fair Trade coffee is dumping it—upwards of 75 percent of it!—on the conventional market.

This is a huge problem for Fair Trade. Essentially, to be successful, it must, as I have stated in the past, “argue for plete standardization of its price-fixing methods.”

This gets at the paradox of religious support for Fair Trade. It makes those who argue so vociferously against “consumption” as an evil, something that feeds the Big Ag “devil” (to use the Freakonomics blog’s terminology), instead rather promote and endorse consumerism of another kind: Fair Trade consumerism.

That’s how you get to the point of mainline denominations pushing Fair modities (like coffee) in the church narthex and small groups, like moneychangers in the temple courtyard.

The Freakonomics post is lengthy and worthy of attention. But for a prehensive discussion of Fair Trade, be sure to check out the new monograph in the Studies in Christian Social Ethics and Economics series, Fair Trade? Its Prospects as a Poverty Solution.

In this book, Henderson State University economics professor Victor Claar examines the case of coffee in particular, and relates that in his

past place of worship, dedicated parishioners freely gave of their time and talents throughout the year to serve the retailing, advertising, and distribution efforts of Equal Exchange. Those parishioners who had taken on the ministry of fair trade coffee advertised frequently in the weekly bulletin and monthly newsletter—at no charge, of course. They also operated a coffee cart that was open for business between and after Sunday services, and they took great care to stock up on extra-special goodies in anticipation of gift-giving occasions such as Christmas and Valentine’s Day. They carefully maintained their inventory on hand, placing

orders with Equal Exchange when stocks were getting low. Of course, Equal Exchange was the only coffee served during coffee hour, where an Equal Exchange sign was prominently displayed to remind everyone that ours was a congregation that cared about the poor.

Claar concludes presciently: “In any other setting but a church, the message would be clear: If you enjoyed today’s free sample, be sure to pick some up on your way out to savor at home all week long.”

Order your copy of Fair Trade? Its Prospects as a Poverty Solution today.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Radio Free Acton: Discussing ‘Communism & Christian Faith’; Upstream with mystery novelist Sally Wright
On this episode of Radio Free Acton, Acton’s Drew McGinnis and Dan Hugger discuss the book Communism & Christian Faith with Pavel Hanes, professor in the department of theology at Matej Bel University in Slovakia. Communism & Christian Faith was written by Lester DeKoster at the height of the Cold War and is newly reissued in the Acton bookshop. Then we have an Econ Quiz segment on trade deficits: what are they and how are they measured? Finally, on the...
Gresham’s Law and social media for sale
In his latest column for Forbes, Alejandro Chafuen, the managing director of Acton’s international activities, has a ranking of free-market think tanks measured by social media impact, and discussesGresham’s Law as it relates to social media: The current discussions about the manipulation of social media for political purposes and mercial interests of social-media giants has raised important questions about its impact and deserves much further analysis. In his surprising announcement that he was going to retire in 16 months, Arthur...
Utah becomes first state to legalize ‘free-range parenting’
My parents should have been jailed for child neglect. At least that’s what would be their fate if I were growing up today. Fortunately for them (and for me), I was a child during the 1970s, a time when kids were (mostly) free to explore the world. At age seven I was allowed to wander a mile in each direction from my home. By age nine I was exploring the underground sewers and drainage system of Wichita Falls, Texas. When...
5 facts about the assassination of Martin Luther King, Jr.
Today marks the 50thanniversary of the assassination of Martin Luther King, Jr. Here are five facts you should know about the killing of the civil rights leader in Memphis, Tennessee. 1. The killing of King in 1968 was the second attempt on his life. A decade before he was assassinated, King was nearly stabbed to death in Harlem when amentally ill African-American womanwho believed he was conspiring against her munists, stabbed him in the chest with a letter opener. He...
French strike for the right to retire at 52
Some 4.5 million French have been immobilized by a national rail strike over what might be termed the most thoroughly French of all labor demands: the right to retire with full benefits at age 52. How extensive is the strike? On Tuesday the nationalized railway, SNCF, kicked off the first of a nearly three-month-long strike. With 86 percent of all trains canceled nationwide, 230 miles of traffic jams congested French roads on “Black Tuesday.” Video surfaced purporting to show desperate...
How growth rates affect the wealth of nations
Note: This is post #74 in a weekly video series on basic economics. In the previous video in this series we learned a basic fact of economic wealth—that countries can vary widely in standard of living. How can we explain wealth disparities between countries? The answer, as Alex Tabarrok of Marginal Revolution university explains, is growth rates. Tabarrok examines the growth rate of the U.S. economy and considers what would life be like if our economy had grown at an...
Unemployment as economic-spiritual indicator — March 2018 report
Series Note: Jobs are one of the most important aspects of a morally functioning economy. They help us serve the needs of our neighbors and lead to human flourishing both for the individual and munities. Conversely, not having a job can adversely affect spiritual and psychological well-being of individuals and families. Because unemployment is a spiritual problem, Christians in America need to understand and be aware of the monthly data on employment. Each month highlight the latest numbers we need...
Marxism, the classless society and history
“Marx always insisted that he derived his system from a careful study of history,” says Lester Dekoster in this week’s Acton Commentary. “Marxists are fond of insisting that they think ‘concretely,’ which means they always stick to the facts. That this is not really the case may be shown by an illustration.” Let us suppose that a student of Marxism grasps the truth that the concept of the classless society, the earthly paradise, is not only the capstone of Marxist...
‘I, Pencil,’ continued: How man cooperates with nature
In Leonard Read’s famous essay,“I, Pencil,”he marvels over the cooperation and collaboration involved in the assemblyof a simple pencil — plex coordination among global creators that is, quite miraculously,uncoordinated. Read’s lesson is simple: Rather than try to stifle or control these creative energies, we ought to “organize society to act in harmony with this lesson,” permitting “these creative know-hows to freely flow.” In doing so, we will see similar stories manifest, fostering further evidence fora faith “as practical as the...
How the principle of ‘eye for an eye’ advanced human equality
“An eye for an eye leaves the whole world blind” is a claim frequently attributed to Mohandas Gandhi. But while the quote might fit the attitude of a non-violent civil rights leader, it misses how the concept of “eye for an eye” changed the world for the better. The phrase “eye for an eye” is taken from passages in the Old Testament that refer to what is often called thelex talionis, the “law of retaliation.” While it sounds harsh, it...
Related Classification
Copyright 2023-2024 - www.mreligion.com All Rights Reserved