Common misunderstandings are undermining support for global free trade. Several of the more common justifications for increased protectionism include trade deficits necessarily weaken an economy, tariffs are effective trade negotiation tools, free trade only benefits the wealthy, and increased exports can raise prices in the domestic economy. Winegarden and Itchon illustrate that these arguments are theoretically flawed and empirically inconsistent with the observed outcomes. In practice, global free trade has produced the broad-based economic benefits that the theory of free trade would predict including rising incomes, greater economic opportunities, and more affordable goods and services.

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Free Trade Myths and Realities

  • Wayne Winegarden,
  • Rowena Itchon

摘要

Common misunderstandings are undermining support for global free trade. Several of the more common justifications for increased protectionism include trade deficits necessarily weaken an economy, tariffs are effective trade negotiation tools, free trade only benefits the wealthy, and increased exports can raise prices in the domestic economy. Winegarden and Itchon illustrate that these arguments are theoretically flawed and empirically inconsistent with the observed outcomes. In practice, global free trade has produced the broad-based economic benefits that the theory of free trade would predict including rising incomes, greater economic opportunities, and more affordable goods and services.