Arguments Against Free Trade Are Deeply Flawed

Goldberg is focusing on what the mainstream media say about free trade, not what conservatives really think. The problem with free trade is that it only works when there are no bad actors. Free trade works among the United States, because despite some very strong differences, there are no bad actors deliberately trying to undermine their neighbors. That is not true with the participants in all of the existing free trade agreements. Almost all of the other countries are bad actors, will not follow the rules and abuse our trust. That is the problem. I think we could have a free trade agreement with countries like Australia, Canada, Poland, Ukraine and most of eastern Europe. And that’s about it.

Thank you, InterceptPoint -- this needed to be said. I thought FR was a bastion of liberty, but it seems the majority now wants to have the government control significant aspects of the economy, much more than we already have. To whatever extent we move even more towards a command economy, we'll get a corresponding reduction in both economic growth and personal freedom.

The freer trade is, the more our standard of living improves. Even when other countries impose tariffs, we're still better off not imposing tariffs ourselves. (And we would outshine them economically, which would be quite convincing in the long term.) Yes, I would rather have true free trade than these long managed trade agreements, but making trade even less free would make things worse.

The political issue is that each tariff benefits a very small number of people immediately, but hurts everybody else (a much large number of people) indirectly. The sum total of the costs far exceeds the total of the benefits, but the costs are spread around, so they're not as obvious as the (much smaller) benefits.

With a large number of tariffs, the costs for almost everybody exceed the benefits, since even if a tariff benefits you, you'll only be benefited by at most one of the tariffs (and most people wouldn't even be benefited by any of the tariffs at all).

Establishing tariffs also runs the risk of starting a trade war. Some people seem to like this prospect because they think a trade war would just hit other countries or "evil" corporations, but in fact a trade war would hurt the US economically.

Incidentally, it's not just government restrictions on trade that are the issue -- there are other so-called conservative voices pushing for a greater government role in the economy. FR these days seems to be in favor of requiring a government permit to get a job. Illegal immigration is a major problem, but undermining the natural rights of American citizens is not the solution. What if you get on the no-work list? Do we really think this will be any better run or more transparent than the TSA's no-fly list?

Thanks much for your reply. It’s been pretty lonely around here pitching freedom of trade. No longer a popular idea these days around Good Old Free Republic.

Establishing tariffs also runs the risk of starting a trade war.

Ridiculous to think the USA is not in a one sided trade war now. This just shows how disingenuous your whole argument is.

None of you Free Traitors™ can ever explain how the USA did so well as an extreme protectionist nation for the first 130 years of its existence. Please let me hear you bad mouth President Washington for signing tariff act after tariff act. Go ahead and trash the founding fathers for protectionism. I dare you. You don't have the cojones.

Geez, Free Traitors™ tell us trade deficits don’t matter but lament socialist and liberals when they claim budget deficits don’t matter. What a crock of BS. Go away you make me nauseous you hypocrite. Limbeciles.

The history of tariffs is interesting. The American Revolution was fought in good part against the mercantilist (protectionist) policies of Great Britain.

Once the US was formed, there has been a continual struggle between free-traders and protectionists, and the tariff has gone up and down. In the years before the income tax, some (smallish) level of tariff was needed to fund the government. It’s not true that we were “an extreme protectionist nation for the first 130 years”. You need to distinguish between (low) tariffs for revenue generation and (high) tariffs for protectionism.

The Tariff of 1789 was generally not high, 5% for most items, and the primary purpose was revenue generation; this was in the days before an income tax. It was only in 1816 that a strongly protectionist tariff was passed. (It’s not the Founding Fathers who were extremely protectionist, but the next generation.)

In the 19th century, the economy could tolerate some protectionism. With no income tax, without onerous government regulations, and with the built-in growth of a continent to settle, we had a primarily free-market economy in spite of the tariff. The tariff was a drag on the economy, but the positives generally overwhelmed that. (On the other hand, we would have grown even more without protectionist tariffs, and studies have shown that the early protectionist tariffs didn’t really help the industries they were intended to assist.)

Now, with an income tax and with overbearing regulations, we can ill afford the fallacy of protectionism. Speaking of “cojones”, I notice that you didn’t address the main point — that protectionist policies produce a drag on the economy as a whole, even though they may benefit a small number of individuals. Their cost is far greater than their benefit.

Finally, calling me a “traitor” is offensive. I want what is best for the US, and I believe you do too. You may think I am wrong, and that the policies I propose would be bad for the country, but that doesn’t make me a traitor; it would just make me wrong. I think you are wrong, and the the policies you propose would be bad for the country, but that doesn’t make you a traitor either; it would just make you wrong.

You may want to be careful on any platform where people use real names or are identifiable — calling someone a traitor may be libelous under those circumstances.

Thank you — I feel the same way.

You may want to be careful on any platform where people use real names or are identifiable — calling someone a traitor may be libelous under those circumstances.

After 30 years of destructive economic policies that started with with NATFA, anyone who defends the current trade situation at this point is a Free Traitor™. It is a perfect name for them. So are you threatening me? LOL.

You can clearly see from the table below your post is factually challenged.

U.S. Historical Tariffs (Customs) Collections by Federal Government
(All dollar amounts are in millions of U.S. dollars)^[1]^[2]^[3]^[4]^[5]^[6]

Year Tariff
Income Budget
% Tariff Federal
Receipts Income
Tax Payroll
Tax Average
Tariff

1792 $4.4 95.0% $4.6 $- $- 15.1%

1795 $5.6 91.6% $6.1 $- $- 8.0%

1800 $9.1 83.7% $10.8 $- $- 10.0%

1805 $12.9 95.4% $13.6 $- $- 10.7%

1810 $8.6 91.5% $9.4 $- $- 10.1%

1815 $7.3 46.4% $15.7 $- $- 6.5%

1820 $15.0 83.9% $17.9 $- $- 20.2%

1825 $20.1 97.9% $20.5 $- $- 22.3%

1830 $21.9 88.2% $24.8 $- $- 35.0%

1835 $19.4 54.1% $35.8 $- $- 14.2%

1840 $12.5 64.2% $19.5 $- $- 12.7%

1845 $27.5 91.9% $30.0 $- $- 24.3%

1850 $39.7 91.0% $43.6 $- $- 22.9%

1855 $53.0 81.2% $65.4 $- $- 20.6%

1860 $53.2 94.9% $56.1 $- $- 15.0%

1863 $63.0 55.9% $112.7 $- $- 25.9%

1864 $102.3 38.7% $264.6 $- $- 32.3%

1865 $84.9 25.4% $333.7 $61.0 $- 35.6%

1870 $194.5 47.3% $411.3 $37.8 $- 44.6%

1875 $157.2 54.6% $288.0 $- $- 36.1%

1880 $184.5 55.3% $333.5 $- $- 27.6%

1885 $181.5 56.1% $323.7 $- $- 32.6%

1890 $229.7 57.0% $403.1 $- $- 27.6%

1900 $233.2 41.1% $567.2 $- $- 27.4%

1910 $233.7 34.6% $675.2 $- $- 15.0%

1913 $318.8 44.0% $724.1 $35.0 $- 17.6%

1915 $209.8 30.1% $697.9 $47.0 $- 12.5%

1916 $213.7 27.3% $782.5 $121.0 $- 8.9%

1917 $225.9 20.1% $1,124.3 $373.0 $- 7.7%

1918 $947.0 25.8% $3,664.6 $2,720.0 $- 31.2%

1920 $886.0 13.2% $6,694.6 $4,032.0 $- 16.8%

1925 $547.6 14.5% $3,780.1 $1,697.0 $- 13.0%

1928 $566.0 14.0% $4,042.3 $2,088.0 $- 13.8%

1930 $587.0 14.1% $4,177.9 $2,300.0 $- 19.2%

1935 $318.8 8.4% $3,800.5 $1,100.0 $- 15.6%

1940 $331.0 6.1% $5,387.1 $2,100.0 $800.0 12.6%

1942 $369.0 2.9% $12,799.1 $7,900.0 $1,200.0 13.4%

1944 $417.0 0.9% $44,148.9 $34,400.0 $1,900.0 10.6%

1946 $424.0 0.9% $46,400.0 $28,000.0 $1,900.0 7.7%

1948 $408.0 0.9% $47,300.0 $29,000.0 $2,500.0 5.5%

1950 $407.0 0.9% $43,800.0 $26,200.0 $3,000.0 4.5%

1951 $609.0 1.1% $56,700.0 $35,700.0 $4,100.0 5.5%

1955 $585.0 0.8% $71,900.0 $46,400.0 $6,100.0 5.1%

1960 $1,105.0 1.1% $99,800.0 $62,200.0 $12,200.0 7.3%

1965 $1,442.0 1.2% $116,800.0 $74,300.0 $22,200.0 6.7%

1970 $2,430.0 1.3% $192,800.0 $123,200.0 $44,400.0 6.0%

1975 $3,676.0 1.3% $279,100.0 $163,000.0 $84,500.0 3.7%

1980 $7,174.0 1.4% $517,100.0 $308,700.0 $157,800.0 2.9%

1985 $12,079.0 1.6% $734,000.0 $395,900.0 $255,200.0 3.6%

1990 $11,500.0 1.1% $1,032,000.0 $560,400.0 $380,000.0 2.8%

1995 $19,301.0 1.4% $1,361,000.0 $747,200.0 $484,500.0 2.6%

2000 $19,914.0 1.0% $2,025,200.0 $1,211,700.0 $652,900.0 1.6%

2005 $23,379.0 1.1% $2,153,600.0 $1,205,500.0 $794,100.0 1.4%

2010 $25,298.0 1.2% $2,162,700.0 $1,090,000.0 $864,800.0 1.3%

--------------------------------------------------------------------------------------------

Notes:
All dollar amounts are in millions of U.S. dollars
Income taxes include Individual and Corporate taxes
Federal expenditures often exceed Revenue by temporary borrowings.
Initially the U.S. Federal Government was financed mainly by customs(tariffs
Average Tariff Rate % = Customs Revenue/ cost of Imports (goods).
Other taxes collected are: Income Tax, Corporate Income Tax, Inheritance,
Tariffs—often called Customs or duties on imports, etc.
Income Taxes began in 1913 with the passage of 16th Amendment.
Payroll taxes are Social Security and Medicare taxes
Payroll Taxes began in 1940.
Many Federal government Excise taxes are assigned to Trust Funds
and are collected for and “dedicated” to a particular Trust.
Sources:

Historical Statistics of the United States 1789-1945^[7]
Bicentennial Edition Historical Statistics of the United States Series 1790-1970^[8]
U.S. Census Trade Statistics^[9]
Whitehouse Historical Tables 1940-2016^[10]

Wikisource has original text related to this article:
Hamilton tariff 1789

You can clearly see from the table below your post is factually challenged.

Factually challenged? I don't think so—it may be Wikipedia that is factually challenged here. The Tariff of 1789 had only a 5% tariff on most items. It's true that tariffs on some items were higher, but I can find no other source saying that the average tariff was anything like 15%.

The general consensus is that the primary purpose of that early tariff was revenue generation, with only a mild protectionist component. (Alexander Hamilton promoted greater protectionism, but that was not the universal view.) That changed in 1816, when the country moved to large-scale protectionism.

By the way, the big lesson in your table is that the income tax has been a disaster, enabling a massive growth in government.

I notice that you still haven't addressed the standard arguments in economics, known since Adam Smith and David Ricardo, that free trade maximizes economic growth and benefits the country as a whole. Protectionism sometimes benefits some small portion of the population, but the total cost to the country far outweighs the potential benefits to people in protected industries.

This is just one example of the general economic principle that government interference in the economy will disrupt pricing signals, distort investment, and reduce economic growth. From a practical point of view, it deprives people of the benefits of comparative advantage and other aspects of a free market, at the same imposing government restrictions on people's natural right to buy from and sell to whomever they choose.

Why don't you point out specifically what is wrong with the well-known economic arguments in favor of free trade?

U.S. Historical Tariffs (Customs) Collections by Federal Government (All dollar amounts are in millions of U.S. dollars)^[1]^[2]^[3]^[4]^[5]^[6]

Year	Tariff Income	Budget % Tariff	Federal Receipts	Income Tax	Payroll Tax	Average Tariff
1792	$4.4	95.0%	$4.6	$-	$-	15.1%
1795	$5.6	91.6%	$6.1	$-	$-	8.0%
1800	$9.1	83.7%	$10.8	$-	$-	10.0%
1805	$12.9	95.4%	$13.6	$-	$-	10.7%
1810	$8.6	91.5%	$9.4	$-	$-	10.1%
1815	$7.3	46.4%	$15.7	$-	$-	6.5%
1820	$15.0	83.9%	$17.9	$-	$-	20.2%
1825	$20.1	97.9%	$20.5	$-	$-	22.3%
1830	$21.9	88.2%	$24.8	$-	$-	35.0%
1835	$19.4	54.1%	$35.8	$-	$-	14.2%
1840	$12.5	64.2%	$19.5	$-	$-	12.7%
1845	$27.5	91.9%	$30.0	$-	$-	24.3%
1850	$39.7	91.0%	$43.6	$-	$-	22.9%
1855	$53.0	81.2%	$65.4	$-	$-	20.6%
1860	$53.2	94.9%	$56.1	$-	$-	15.0%
1863	$63.0	55.9%	$112.7	$-	$-	25.9%
1864	$102.3	38.7%	$264.6	$-	$-	32.3%
1865	$84.9	25.4%	$333.7	$61.0	$-	35.6%
1870	$194.5	47.3%	$411.3	$37.8	$-	44.6%
1875	$157.2	54.6%	$288.0	$-	$-	36.1%
1880	$184.5	55.3%	$333.5	$-	$-	27.6%
1885	$181.5	56.1%	$323.7	$-	$-	32.6%
1890	$229.7	57.0%	$403.1	$-	$-	27.6%
1900	$233.2	41.1%	$567.2	$-	$-	27.4%
1910	$233.7	34.6%	$675.2	$-	$-	15.0%
1913	$318.8	44.0%	$724.1	$35.0	$-	17.6%
1915	$209.8	30.1%	$697.9	$47.0	$-	12.5%
1916	$213.7	27.3%	$782.5	$121.0	$-	8.9%
1917	$225.9	20.1%	$1,124.3	$373.0	$-	7.7%
1918	$947.0	25.8%	$3,664.6	$2,720.0	$-	31.2%
1920	$886.0	13.2%	$6,694.6	$4,032.0	$-	16.8%
1925	$547.6	14.5%	$3,780.1	$1,697.0	$-	13.0%
1928	$566.0	14.0%	$4,042.3	$2,088.0	$-	13.8%
1930	$587.0	14.1%	$4,177.9	$2,300.0	$-	19.2%
1935	$318.8	8.4%	$3,800.5	$1,100.0	$-	15.6%
1940	$331.0	6.1%	$5,387.1	$2,100.0	$800.0	12.6%
1942	$369.0	2.9%	$12,799.1	$7,900.0	$1,200.0	13.4%
1944	$417.0	0.9%	$44,148.9	$34,400.0	$1,900.0	10.6%
1946	$424.0	0.9%	$46,400.0	$28,000.0	$1,900.0	7.7%
1948	$408.0	0.9%	$47,300.0	$29,000.0	$2,500.0	5.5%
1950	$407.0	0.9%	$43,800.0	$26,200.0	$3,000.0	4.5%
1951	$609.0	1.1%	$56,700.0	$35,700.0	$4,100.0	5.5%
1955	$585.0	0.8%	$71,900.0	$46,400.0	$6,100.0	5.1%
1960	$1,105.0	1.1%	$99,800.0	$62,200.0	$12,200.0	7.3%
1965	$1,442.0	1.2%	$116,800.0	$74,300.0	$22,200.0	6.7%
1970	$2,430.0	1.3%	$192,800.0	$123,200.0	$44,400.0	6.0%
1975	$3,676.0	1.3%	$279,100.0	$163,000.0	$84,500.0	3.7%
1980	$7,174.0	1.4%	$517,100.0	$308,700.0	$157,800.0	2.9%
1985	$12,079.0	1.6%	$734,000.0	$395,900.0	$255,200.0	3.6%
1990	$11,500.0	1.1%	$1,032,000.0	$560,400.0	$380,000.0	2.8%
1995	$19,301.0	1.4%	$1,361,000.0	$747,200.0	$484,500.0	2.6%
2000	$19,914.0	1.0%	$2,025,200.0	$1,211,700.0	$652,900.0	1.6%
2005	$23,379.0	1.1%	$2,153,600.0	$1,205,500.0	$794,100.0	1.4%
2010	$25,298.0	1.2%	$2,162,700.0	$1,090,000.0	$864,800.0	1.3%
--------------------------------------------------------------------------------------------
Notes: All dollar amounts are in millions of U.S. dollars Income taxes include Individual and Corporate taxes Federal expenditures often exceed Revenue by temporary borrowings. Initially the U.S. Federal Government was financed mainly by customs(tariffs Average Tariff Rate % = Customs Revenue/ cost of Imports (goods). Other taxes collected are: Income Tax, Corporate Income Tax, Inheritance, Tariffs—often called Customs or duties on imports, etc. Income Taxes began in 1913 with the passage of 16th Amendment. Payroll taxes are Social Security and Medicare taxes Payroll Taxes began in 1940. Many Federal government Excise taxes are assigned to Trust Funds and are collected for and “dedicated” to a particular Trust. Sources: Historical Statistics of the United States 1789-1945^[7] Bicentennial Edition Historical Statistics of the United States Series 1790-1970^[8] U.S. Census Trade Statistics^[9] Whitehouse Historical Tables 1940-2016^[10]