In order to mitigate the clear conflict between the tariff and the value scales of consumers, the latter are subjected a barrage of isolationist slogans, exhorting them to "buy American" as a matter of patriotic duty. Despite such efforts, trade barriers almost inevitably give rise to black markets, drawing increasing numbers of citizens into the orbit of organized crime. For instance, in the very unfree market that has superseded communism in Russia, import/export controls have generated rampant, uncontrollable smuggling and black-market profiteering.

Our analysis, it should be observed, applies independently of any tariffs or other protectionist policies that may be in force in other countries. As we observed previously, Crusoe may benefit from trade with Friday even if Friday irrationally refuses to trade certain kinds of items (p. 4.5:30). Likewise, even in a world where some nations cling to irrational isolationist policies, the citizens of one country can derive benefits from a unilateral policy of free trade. Unfortunately for politicians seeking unearned glory, free trade does not require that government representatives be sent to "negotiate" trade agreements with their foreign counterparts. It requires only that they respect the free market by permitting business leaders to negotiate whatever deals they find advantageous.  Next page


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