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Mia Wright
Economics
Hatlen 3rd
May 5th, 2022
Free Trade: Scam or Wham?

In hundreds of countries, around the corner is a Mcdonalds, a Burger King, or even a

Taco Bell. Why is that you ask? This results from the growth of free trade. Free trade developed

hundreds of years ago. Blooming countries had incentive to expand, invent, and become

productive. Countries like America noticed early on that their farmland can not only benefit

them, but benefit others. By seeing what they have to gain, it became natural to endorse free

trade. Free trade is beneficial to the global economy and the world because it is the greatest

generator to economic well-being, is time and quality efficient, and increases employment.

For a developing country, trade may not always thrive. In spite of this, trade has been

consistently shown to be the greater generator for economic well-being. For instance, “Trading

freely , Chinese workers will specialize in shoes and Americans in soybeans, raising world

production of shoes from 800 to 2,000 pairs and soybeans from 7,000 to 10,000 bushels”.

(Exhibit 2). You might be thinking, so what? In each country there is an opportunity to find

employment. However, without the growth of companies through consumption as a result of free

trade, not only would these jobs be unattainable, but you wouldn’t be able to hold the phone you

bought. You would not have clothes to wear or a TV in your living room. Consumption through

free trade promotes growth of stable, strong economies. Furthermore, “It enriches nations

because it allows companies and workers to specialize in what they do best. Competition forces

them to be more productive”. (Source A). A competitive economy is a healthy economy. In cities

like Los Angeles, San Francisco, Austin, New York, and more we see Starbucks’ right across

from Dunkin Donuts or Dutch Bros. These companies specialize in what they do best which
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forces them to produce efficiently. As a result of this, consumers are forced to make a trade-off

because wow, these cups of Joe are just that good. Consumers want to try all and benefit from

all.

Free trade holds many benefits. Of course, it will have drawbacks. However, the pros

outweigh the cons because of the financial stability and economic freedom shown over time

through trade. For example, “Essentially, free trade enables lower prices for consumers,

increased exports, benefits from economies of scale and a greater choice of goods”. (Economics

Help: Benefits of Free Trade). Have you ever noticed a drop in the stock market? Prices drop

because consumers aren’t buying. This is the same for everyday products like bread, milk, and

eggs. The more people who buy, the higher the demand and supply. With no one product you are

forced to buy, the comparative advantage offers even lower prices to consumers. This benefits

consumers by encouraging financial stability and the freedom of choice. Furthermore, “Most free

countries consume up to $20,000 per capita consumption. Least free up to only $2,000”. (Exhibit

7). Third world countries often say, “ You are fortunate to have such freedom”. And in that, we

are. In our evidence previously stated, free countries are shown to consume 10x the amount of

goods compared to more restricted countries. How can this be justified? Free countries

influenced by trade have more job opportunities, make more income, and receive benefits as a

consumer and/or a seller. This is shown to be beneficial to people, to governments, and economic

stability as a whole.

Trade has often been shown to increase employment. This is because creating these new

things requires a lot of little steps along the way. Despite these “increases in jobs”, outsourcing

the labor has become very popular among big businesses. For example, “Free trade allows
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businesses to move their production to a place where it is cheaper to produce. In countries where

labor or production costs are high, this often means that many people lose their jobs, because

production is outsourced to cheaper places. Furthermore, companies in branches that had

previously been protected by government subsidies are often unable to compete with global

companies as markets are flooded with cheaper goods”. (Debating Europe: Arguments Against

and For Free Trade). You;might often hear people say don’t support fast fashion. This partly has

to do with the conditions we see when companies outsource their business. Wages in Asia are

often much lower, making it easier for businesses to make big profit and pay close to nothing.

While these factories provide jobs, as a result it removes jobs from the businesses origin of

establishment. For example, a big company like H&M sells mainly to the U.S. Yet their factories

are mostly in Asia. This displaces jobs in the United States. In addition to this, “Cheap

production often comes at a high human cost. To save labor and production costs companies

often move their production to “less developed” countries, and capitalize/exploit on the lack of

labor protection laws there. Local workers are often forced to work under dangerous and

inhumane conditions. One of the most severe examples of this was the collapse of a garment

factory in Bangladesh in 2013, which had produced clothing for European companies (amongst

others). In addition, workers are often forced to work for extremely little pay and in the most

severe cases even include child laborers”. (Debating Europe: Arguments Against and For Free

Trade). The reality of free trade can be ugly. Child Labor, unfair work conditions, and low wage

are many of the ugly truths about trade. How can I support trade when this is happening you

might ask? Fight against it. Sign petitions, support companies who have warehouses that are safe

and are in regions that support a reasonable minimum wage. By supporting large companies, you

are adding to the workers’ struggles.

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The growth of stable economies never came easy. Despite some of the harsh realities of

free trade is beneficial to the global economy and the world because it is the greatest generator of

economic well-being, is time and quality efficient, and increases employment. Regarding the

consequences of free trade, there are so many things we can do to support those who are

suffering under unfair laws such as fighting for their rights and doing more to put bigoted

companies in their place. So why care? Why fight? We fight because the freedom of others is

just as valuable as our freedom. Our right to religion, our right to property, and our right to run

for office are some of the many privileges the Government offers us. We fight for the stability of

our economy and our own stability.

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Online Sources

https://www.economicshelp.org/trade2/benefits_free_trade/

https://www.debatingeurope.eu/focus/arguments-for-and-against-free-trade/#.YnQoTtrMLIU