CHAPTER 20Unequal Trade

In the great days of the USA, Henry Ford stated that he wanted to pay high wages to his employees so that they could become his customers and buy his cars. Today we are proud of the fact that we pay low wages. We have forgotten that the economy is a tool to serve the needs of society, and not the reverse. The ultimate purpose of the economy is to create prosperity with stability.

—Billionaire speculator Sir James Goldsmith, 19931

EQUAL TRADE, FAIR TRADE, HONEST, DECENT TRADE REQUIRES REASONABLE balance between trading partners and strong domestic economies. When that happens, Adam Smith’s model works pretty well: prices for labor, materials, and finished goods all settle near the area where they “naturally” should be. ...

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