Let me rephrase my points...
There is a belief amongst some individuals that economics theories should be the prevailing wisdom by which humanity should guide it's existence. I get the distinct feeling you are one of these people.
But I learned long ago that NO sub-set of Social Science, whether it be Economics, Political Science, or Social Psychology can stand alone as measures or explanations for human interaction. They are all interdependent.
I've stated before that I believe economic theories exist to serve humanity, not the reverse. They exist to help explain human behavior, but they cannot divorce themselves from the political, psychological, and even anthropological influences that influence our daily lives and drive our economic decisions.
Economics can drive political decisions, but there is just as strong an argument that political decisions drive economics.
It's very easy to preach free trade. I've done it myself, to a point. But should such a sermon permit or advocate the use of child or slave labor to produce the goods/services we consume? Does free trade mean we should tolerate, or even encourage, 7 day work weeks in other countries exporting their goods into our markets? Is mankind's purpose on this earth to pursue optimal economic efficiency, or the progress of humanity?
Do we permit mercantilist policies from other countries, resulting in tremendous trade surpluses on their part (and deficits on ours) in the name of advocating free trade?
Do we permit free flow of labor, documented or undocumented, transiting our borders, regardless of their citizenship status?
And should we permit it even though our neighboring countries do not?
What price do we pay for free trade?
And if we're for free trade, while others are for protectionism, do we still hesitate to exercise tariffs to defend our economic interests?
Mish, it's all well and good to look to an economic theory as a Utopian" ideal, but in doing so you cannot divorce yourself from political realities, whether domestic or international.
Global trade requires global political stability. It also requires a mutually accepted and respected set of economic and political rules to govern and guide it. It also necessitates a collective security framework of enforceable treaties and alliances to protect those rules and punish those who would violate them.
Hawk |
