The reason is pretty straightforward: The stormy petrils don't grasp basic economics and, in this instance, the importance of free trade and its ability to lower the number of hungry persons as well as to improve the globe's climate. In short, free trade--the sale and purchase of goods free of tariffs and similar barriers--promotes greater social justice.
For the ideological stormy petrels, that's heresy.
But, to clear-headed, thinking people, it's fact. To wit, the Wall Street Journal reports data from the 2015 Index of Economic Freedom:
90.0 Hong Kong, Liechtenstein, Macau, Singapore, and
87.0 United States, Peru
0.0 South Korea
Here's what those rankings mean: The higher the nation's ranking, the greater the nation's economic growth, food security, and environmental quality. The facts:
- Nations with higher trade freedom have significantly stronger economies. The average per capita income in countries scoring in the top third for trade freedom is ~$28.2k. For nation's in the middle third, it's $5k+. And, for those in the bottom third, it's $3.4k+.
- Nations in in the top third for trade freedom have lower hunger indexes than those with poor trade freedom scores.
- Nations with higher levels of trade freedom have higher environmental performance index scores, that is, they have cleaner environments.
The development of the General Agreement on Tariffs and Trade (GATT) in 1947 has liberalized global trade. In 1947, the average tariff rate in the industrialized nations was 40%. With the creation of the World Trade Organization in 1995 as the successor to GAAT, 200+ bilateral and regional free trade agreements have been implemented with the average tariff rate in 2014 at < 3%. Lastly, nations have also made efforts to reduce trade barriers on their own or have negotiated trade deals with one another.
Want to reduce global hunger and improve the globe's climate? The stormy petrels ought to look at the facts and lustily embrace free trade as the best way to increase social justice across the globe.
Let the discussion begin...
To read the Wall Street Journal article, click on the following link:
"2015 Index of Economic Freedom: Why Trade Matters and How to Unleash It."