By Swithun Dobson
The handling of the post EU referendum has been pitifully slow and bumbling for two main reasons: the first, which is obvious, no-one close to the reins of power actually wants to leave and the second is the belief that Britain must secure a free trade deal with the EU in a post-Brexit world. Almost all economists, even Paul Krugman, believe that a world entirely shorn of tariffs would be a better place. Each country would be able to specialise where it has its comparative advantage (a situation of having a lower opportunity cost than another country in producing that good), leading to lower prices, more innovation and overall greater welfare. This is even in the case where you have predominantly agricultural third world economies trading with leading world economies, such as the UK. The principle is sound. Read more
By Swithun Dobson
What is the purpose of money? Where does it come from? Inequality generates trade and specialisation creates the need for money . A good money is widely marketable and must function as a genuine store of value, thus paper money should be consigned to the board game Monopoly.
Inequality Leads To Trade
In a state of subsistence farming money need not exist, since a family, for example the Robinsons, might produce all the requirements for survival (food, shelter, clothing, water etc) and so have no reason to trade; however as soon as they come into contact with another family, the Andersons, group trade is possible and thus money could arise. Yet, why would anyone bother trading with another group in the first place? Mises cites three reasons:
- The natural inequality of man regarding their abilities to perform a task.
- The geographically unequal distribution of natural resources.
- Certain tasks require more than the labour of one man.
By D. J. Webb.
Note: the Libertarian Alliance does not endorse candidates or parties in the general election. This article is offered for discussion and should not be construed to constitute advice as to how to vote.
A brief note.
While immigration and multi-culturalism are my main issues at election time, the London attacks have just underlined that Theresa May has no intention of devising a proper response to terror. She wants more refugees to come in, refuses to deport the 23,000 known jihadis, and favours continued mass immigration. Read more
As Sean has referred to my position on judicious protectionism here it is.
Economic history tell this story: a strong domestic economy is necessary for sustained economic growth and stability. The freer the trade with foreign states, the less stable and secure the domestic economy. It also tells us that the most effective general strategy to promote economic development in a country is to allow competition within the domestic market (where it does not create serious social discord) whilst regulating international trade through protectionist measures sufficient to maintain the general capacity of a country to point where it can maintain itself in an emergency such as war or blockade and be sovereign in most circumstances.This would require the judicious use of embargoes, tariffs and quotas to ensure that all the vital industries remain as a presence in Britain. Read more
The subject of ‘Tariffs’ like many others, seems to have become something beyond which debate is no longer permissible. But we know from experience, that when any dogma arrives at that status of unchallengeable, the conventional wisdom is nearly always wrong. Usually because no discussion of the subject is permissible in ‘liberal’ company.
Until the early 1980s the ‘Left’ in Britain were not merely in favour of high selective tariffs, but demanded PHYSICAL import controls (but only, of course for unionised and nationalised industries). Anyone who said otherwise was a ‘Thatcherite’ bent on ‘destroying’ British Industry, or, unfashionably ‘Old’ Labour. Read more