Home
/
RELIGION & LIBERTY ONLINE
/
Reviving the spirit of free trade
Reviving the spirit of free trade
Sep 15, 2025 11:49 PM

The current support for tariffs in the United States has left me disappointed, frustrated, and in many unproductive debates. The French political philosopher, Frédéric Bastiat, best articulated my sentiments in an 1847 letter to Richard Cobden, “And I want not so much free trade itself as the spirit of free trade for my country. Free trade means a little more wealth; the spirit of free trade is a reform of the mind itself, that is to say, the source of all reform.”

What I want for the United States in 2019 is a return to, or maybe even a discovery of, the “spirit of free trade.” You might ask, what is the “spirit of free trade”? I would infer that Bastiat means a respect for private property, the Rule of Law, and a general understanding that mutually agreed upon trade makes people better off and promotes peace.

President Trump has now put in place tariffs on Chinese goods valued over $200 billion. The most popular reasons argued on behalf of these tariffs are (1) the Chinese are stealing our intellectual property, (2) our trade deficit is too high, and (3) the Chinese are engaging in unfair business practices.

Let’s consider these arguments in reverse order.

Since taking office as President, Donald Trump has frequently lambasted China for engaging in unfair business practices. In early 2018 he made the strong statement, “From now on, we expect trading relationships to be fair and to be reciprocal.” Why is this desirable? As Jeffrey Dorfman, economics professor at University of Georgia says, “It is trade which looks the most unfair that creates the most benefits because the potential gains are the largest.”

When countries specialize in what they are relatively better at (i.e. parative advantage), it allows persons within a country to consume more of all products. When China specializes in parative advantage and the U.S. does the same, we both e better off when we trade with each other for those goods that we did not produce. When tariffs are imposed, restricting trade between countries, it forces each country to allocate resources to what they are relatively worse at producing (where they have parative disadvantage). This disproportionately harms low wage earners. Research has shown that free trade most helps the poor as they purchase relatively more imported goods. As Acton Institute’s director of research, Samuel Gregg, states in a recent article at Law & Liberty, “The more we (America and Americans) can import, the better off we are in terms of material prosperity.”

When the U.S. trades freely with other countries it allows us to play to parative advantage, which benefits both consumers and producers in the United States as well as individuals in the countries that we trade with.

Another frequently cited argument is that our trade deficit is “too high”. We first need to consider what a trade deficit is. A trade deficit in the United States occurs when the cost of our imports exceeds the value of our exports. Many, including President Trump, think a large trade deficit to be bad for the American economy and jobs. This simply isn’t true. The U.S. has run consistent trade deficits since 1976, importing $6 trillion worth of goods more than we have exported. This has had little to no negative impact on jobs (see charts). This shows that running a trade deficit impacts the types of jobs and growth in our economy, not the number of jobs or size of growth.

Finally, let’s consider what has e the loudest, most cited argument, in recent months. China is stealing “our” intellectual property and we need to impose tariffs – in the order of $250 billion – to convince them to stop.

In a recent essay, free trade advocate Don Boudreaux listed six convincing arguments against imposing high tariffs as a result of alleged Chinese intellectual property theft.

Two of Boudreaux’s six arguments are worth restating here.

First, “President Trump’s tariffs are first and foremost punitive taxes on Americans who buy imports from China.” When the U.S. government imposes punitive taxes on American citizens through high tariffs on foreign goods they are, in essence, attacking private property. They are confiscating resources from the majority of citizens for the benefit of a few – typically large businesses with successful lobbying firms.

Second, “American victims of China’s IP theft could avoid much of this theft simply by refusing to do business in China.” The decision should be left to particular corporations on whether they want to do business in the Chinese market at the risk of forfeiting their intellectual property. In addition, for cases where China is legitimately stealing intellectual property from U.S. businesses operating outside of China, there is already a process set up to handle these disputes through the World Trade Organization. We should use this process for recourse rather than imposing punitive tariffs that harm Americans.

Tariffs hurt the average person. They hurt you and me, decreasing our quality of life and the value of our dollars. In a 2016 article released by the World Trade Organization (WTO), Maurice Obstfeld said, “those who promote “getting tough” with foreign trade partners through punitive tariffs should think carefully. It may be emotionally gratifying; it may boost specific industries; the threat may even frighten trade partners into changing their policies; but, ultimately, if carried out, such policies cause wider economic damage at home.”

This past week, my dad and I ventured into a family owned bicycle store near my Fort Wayne childhood home to purchase a bicycle for my mother. The owners, a husband and wife team, mentioned they are struggling to appropriately price their bicycles because of the recent tariff increases on aluminum and steel, among other consequences of the growing trade war. They mentioned there is a chance their bicycles could increase in price by 25 percent this year. If you run a small business, you can understand how difficult this makes planning for the year ahead.

Tariffs, for any reason, might prove to make specific corporations in the United States better off, but they make the average person worse off. The mother who simply wants to buy her child a bicycle for their birthday might no longer be able to do so. President Trump’s trade policy is benefitting the politically connected minority at the expense of the majority. Yes, I want free trade, but what I want more is for Americans to restore “the spirit of free trade” in 2019.

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
Freedom, Security, and the iPhone
Writing on September 22 in the Wall Street Journal, Devlin Barret and Danny Yadron reported, Last week, Apple announced that its new operating system for phones would prevent law enforcement from retrieving data stored on a locked phone, such as photos, videos and contacts. A day later, Google reiterated that the next version of its Android mobile-operating system this fall would make it similarly difficult for police or Google to extract such data from suspects’ phones. It’s not just a...
Michael Miller: Let’s Rethink Foreign Aid
Michael Matheson Miller Acton’s Michael Miller, director of the documentary Poverty.Inc, spoke with Bill Frezza at RealClearPolitics. Miller asks listeners to rethink the foreign aid model, which has not been successful in alleviating poverty in the developing world. Rather, Miller makes the case for supporting entrepreneurship and supporting the social and political framework that enable people to lift themselves out of poverty. Listen to the interview here. ...
Once Again, Religious Shareholder Activists Fail Massively
Despite what is heralded as a banner year for proxy resolutions submitted by religious shareholder activists As You Sow and the Interfaith Center on Corporate Responsibility, 2014 was anything but. Even the left-leaning Center for Political Accountability reports most so-called shareholder victories for political spending disclosure were performed panies’ own initiative rather than prompted by resolutions authored by CPA and submitted by activist shareholders under the guise of religious principles. The AYS and ICCR narrative collapses further under scrutiny from...
Socialists Love Everything About $20 Minimum Wages (Except Paying Such Wages Themselves)
There’s something almost charming about people in American who champion socialism. Yes, their economic views are naive and destructive. And yes most people (though especially the poor) would be much worse off if their vision for “progress” was actually implemented. But it’s hard to be too concerned when they are, at heart, really just capitalists who like to play political dress up. Consider one of their favorite causes, a $20 minimum wage. In their most recent party platform, the Freedom...
Reflections on the Passing of Leonard P. Liggio
LiggioAlmost 20 years ago I was invited to speak at the celebratory banquet for the Atlas Economic Research Foundation (now Atlas Network) and the Institute for Humane Studies, then celebrating their 15th and 35th anniversaries respectively. I was an alumnus of both and six years into the launch of the Acton Institute (founded in 1990). Both organizations considered me “successful enough” to reflect at the banquet on how each had influenced my life. It was an undeserved honor, of course,...
Preventing Human Trafficking
Human trafficking can be prevented. It takes tenacity, hard work, and knowledge of the needs of the people in a particular area of the world. One of the greatest “push” factors (those factors that drive people into human trafficking) is poverty. Poverty creates desperation, and desperation drives trafficking. Parents cannot afford to feed children, and will sell them off. Sometimes people are tricked, thinking that their child will be given a job or education. Women will sell their bodies because...
Why Not Just Hand Over the Sermons?
After hearing the news that the city of Houston had ordered several pastors to submit their sermons for legal review, many people had the same reaction as Brian Lee: “My response? So what? Sermons are public proclamation, aren’t they?” Sermons are indeed proclamations intended for the public, and most pastors would be eager for anyone — including public officials — to hear them. So what is the reason for the current objection? Mollie Hemingway explains that the true “governing authorities”...
Acton On WOOD Radio With Mako Fujimura
Acton broadcast consultant, Paul Edwards, will guest host West Michigan Live on Tuesday, October 21 at 9:00 am EST on WOOD Radio in Grand Rapids. His guest at 9:30 a.m. is artist Makoto Fujimura, whose 2014 ArtPrize entry, Walking on Water, was exhibited at the Acton Building. At his blog, Mako has written an engaging and thoughtful piece about his experience at ArtPrize which will be the focus of Paul’s conversation with him. In West Michigan, you can listen live...
The Welfare State and Intergenerational Injustice
Contrary to current policy, this is not reality. Last Saturday The Imaginative Conservative published my essay, “Let’s Get Back to Robbing Peter: The Welfare State and Demographic Decline.” To add to what I say there, it should be a far more pressing concern to conscientious citizens that the US national debt has risen from $13 trillion in 2010 to nearly $18 trillion today. That is an increase of $5 trillion in just four years, or a nearly 40 percent increase....
Rev. Sirico on the Vatican Synod
In today’s Wall Street Journal, Rev. Robert A. Sirico clears away the media hype surrounding the Vatican Synod on the Family and offers an analysis of its early work. He observes that nothing about the synod “challenges the dogma of the church related to the indissolubility of sacramental marriage, the use of artificial contraception, cohabitation and homosexual acts. What it did was soften the tone of these teachings.” But things got interesting. An early report led critics to say that...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved