Friday, August 27, 2010

Free Trade Part 1: Overview and NAFTA

Free Trade. Say this to different people and you will get both acclaims of praise and disgust. I personally am in favor for free trade. Here are the reasons:
1. It allows people in different countries to have their wealth level out over time. If there is more trade between countries, the currencies will level out. this will happen because the demand for different currencies will equalize. This is why the American and Canadian dollars are always close to each other.

2. It allows people to get the best deal on goods. If you want apples in the winter in America, you need them from the southern hemisphere and vice verse. German beer, Russian Vodka, Indian carpets (leaving child labor out of the question), these are all produced at certain times of the year at one place or another, and to not get them is silly, because it limits citizen's choices on what they want to buy. It will mean that people will have access to the best materials throughout the world.

3. If people are able to go other places to get work than the money in the super rich countries will start to level out to the really poor countries. Look at it this way. The American dollar is inflated because there are too many dollars floating around. If you made trade with the rest of the world go up, the dollars will go to other countries and prices that are extremely high right now will shrink because the value of the dollar will rise. The other bonus is that countries that are havens for crime and drugs right now will become more wealthy and be able to crack down on criminal acts, be it trafficking of persons or drugs. Everyone will benefit.

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