Hope for Free Trade

With protectionist populism sweeping the GOP, and protectionist Democrats taking over in the 110th Congress, the outlook for free trade is bleak.

One ray of sunshine is a guest editorial in the Wall Street Journal today by U.K. Chancellor of the Exchequer, Gordon Brown, and Treasury Secretary Hank Paulson. These guys get it.

Over the last 30 years, world trade has grown twice as fast as output -- and the economies that have grown fastest have been those that trade most. Nothing is more important to global economic growth than trade. Far from being a zero-sum game, expansion in trade benefits all countries -- big and small, rich and poor.

Citizens of nations that reform their economies and open themselves to trade and competition have better jobs, improved living standards and greater opportunities. At the same time, nations that try to close themselves off from competition, hinder free markets and fail to invest in their people simply get left behind. Indeed, no country has escaped from poverty without opening up to trade.

Brown will soon be Prime Minister and he is known to be far to the left of my favorite socialist, Tony Blair. I am glad to see the words come off his pen. Trade still has a tough road, but two important people understand its benefits.

Economics and Markets Posted by jk at November 27, 2006 11:18 AM