Thursday, September 07, 2006

Economics in six minutes !

I urge all readers to read this article and have a deep think about the merits of free trade. Even those that appreciate the economic reasoning behind a particular argument (e.g abolishing minimum wage or public spending) often maintain their previous beliefs because it is based on moral or ethical reasoning.

Unfortunately, the economic reasoning still stands, and when it is fully taken into account, it is actually more ethical and moral to support free and unhampered markets. Goals such as social justice and eliminating poverty still maintain the #1 priority for millions of people, with no regard to other goals such as human freedom, property rights, entrepeneurship and economic development.

The beauty of economics is: When you focus on economics, you improve the lives of millions of people. So it is both moral and ethical to support free trade.

The bottom line to all this is that economic freedom leads to the most prosperity. Don't restrict labor and capital other than to prevent coercive harm to others. Don't tax labor or enterprise. Get public revenues from rent and pollution fees. Let the market handle the money and banking. True free trade and enterprise are good; decentralized and market-based governance works best.


That's economics in six minutes, and the path to prosperity.