Contribution No.1 to the debate on FREE TRADE :
FREE TRADE
(Quoted from The Georgist
Journal, No. 90, 1999) By Ole Lefmann
Henry George lived several years of his life in dire poverty. He
first held the opinion that protection of American industry would also
protect American citizens - but he soon realized that poor citizens were
cheated by the Protectionists. Later he discovered, however, that the real
shackles on poor people were the private withholding of the rent of land, and
he used the rest of his life to advocate for the public collection of the rent
of land. Politically, he campaigned for Free Trade and Single Tax.
Since then
private charity and Social Security benefits have been still better organized
to mitigate the consequences of poverty - and free trade as an idea has
defeated protection, though in reality it has not abolished Protection.
Thus, the
calamities Henry George wanted to abolish have been tackled, but not in the
fundamental way he proposed. The causes of hardships have not been abolished,
only veiled in administration which protects the interests of the privilege
holders.
Followers
of Georgist ideas are still crying for free trade - but people in
general do nut understand free trade in the same way as Georgists do.
Most
people think of Free Trade as trade in a market without any control or
regulation, in which the stronger, richer, more unscrupulous citizen is allowed
to grab what he can, letting the meek, mild and weak citizen suffer from
poverty. Many workers have experienced that competition has forced them to
accept dangerous and unhealthy working conditions - and low wages. Because of
their bad experiences of competition in the labour market, many workers do
really hate all talk of Free Competition, Free Enterprise, Free Trade. And
Georgists' apparent cheering for these slogans has been a good reason for many
to disassociate themselves from Georgists and prefer Socialists.
During the
last few decades, other serious areas of resistance to free trade have
appeared. Many people around the world worry about the future because of
private entrepreneurs' destruction of nature. Competition, they believe, forces
entrepreneurs to lay violent hands on nature. Previously, the Earth was
considered as our inexhaustible stock of raw materials. But today, one man can,
in a few hours time, cause damage from which it will take nature centuries to
recover. Pollution caused by increased production to meet demands from
increased population becomes ever more serious. A great many citizens demand
that their government stops this damage and rescues the natural heritage for
their descendants: they want restrictions against enterprises.
Further,
still more and louder voices call public attention to the way in which
enterprises cross borders around the world - in the name of free trade -
hampering the industrial progress of less developed countries and deepening
their external debts. World conferences have discussed these problems for
years.
A great
many people look upon those who call for Free Trade, Free Enterprise and
Competition as the real enemies of nature and sustainable development!
Georgists
understand free trade different - as an economy whose field is levelled
by regulations so that markets can function without protection, subsidies,
preferences or privileges of any kind. The foundation of a free market, for
Georgists, is a condition of equal access to the economic advantages of the
earth, the environment and society. Georgists' free trade presupposes
implementation of effective control and regulation of monopolies and
privileges, and will have to accept interventions to protect the health of
people and of nature. One must ask, then, given all these considerations,
whether free trade - originally a slogan against protection - is
still the right wording.
It is clear that people in general do
not understand free trade as Georgists understand it. So, I find that free
trade is no longer an attractive label or trademark for the Georgist ideas,
as it was years ago. I invite the readers of the 'Georgist Journal' to suggest
what Georgists should do about this.
Ole Lefmann
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The reader's comments are very welcome. Please send a letter to the
International Georgist Union, 212 Piccadilly, W1J 9HG, United Kingdom, or
e-mail to iu@interunion.org.uk
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