Saturday, April 18, 2009

Free trade solves all the world's problems?

Maybe not but I think it would reduce a lot of wars out there.

Reason being that when you trade everyone benefits because of comparative advantage.

An excellent book on the subject of free trade is After War: The Political Economy of Exporting Democracy by Christopher Coyne.

That is a reason I voted for Obama not necessarily because he's all free trade but because I think he will improve trade relations with Cuba, Venezuela, Russia, and Iran. That is the key to peace between all those countries is trading goods and opening up markets making war even more costly than bombs and human lives. Free trade makes war bad for business.

Obama is already looking to open up trade with Cuba and have better relations with Venezuela as seen here.

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