Posted To Mish Shedlock’s Blog 04/19/2016

Free trade may be good for certain corporations, but its not good for millions of individuals. Plain and simple that means it DOESN’T work. Now it could work if you implemented a universal dividend and a price deflationary discount to retail prices. In fact if every nation did that they could each industrialize or re-industrialize and then free trade would be much more easily, humanely and ethically accomplished. Of course if you insist upon relating to free trade and every other economic issue from an orthodoxy that closes your mind to this….then you and everyone else…..will just have to suffer unnecessarily. How rational is that?

*************************************************

If, in the normal and completely unfettered operation of the economic system, there was enough individual incomes created and distributed to liquidate total costs and so total prices Gifting would not be necessary. Unfortunately this is not the moment to moment economic reality and so Gifting directly to the individual and a policy of a deflationary retail discount placed at the terminal end of the economic/productive process for any item or service where it hence cannot harm any economic agent, is necessary for a stable equilibrium to be possible.

Leave a comment