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Old Jan 20, 2013, 12:28 AM
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United States, CA, Rosemead
Joined Jan 2012
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Quote:
Originally Posted by rcfisherman View Post
economics 101 - the foundation of democracy - Free trade is a policy by which a government does not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports) or quotas. According to the law of comparative advantage, the policy permits trading partners mutual gains from trade of goods and services.

Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow (according to proponents) "fair competition" between imports and goods and services produced domestically.

Most mainstream economists agree that protectionism is harmful in that its costs outweigh the benefits and that it impedes economic growth. Economics Nobel prize winner and trade theorist Paul Krugman once stated, "If there were an Economist's Creed, it would surely contain the affirmations 'I understand the Principle of Comparative Advantage' and 'I advocate Free Trade'."

Compare the closed economies of North Korea VS the the USA.
To keep variables at the minimum, compare China's present economy to just a few years ago when it was was closely regulated.

Buying locally is the worst thing you can do in the long-term. It is the most un-American thing you can do since the USA is based on democracy, capitalism and a free-market economy. Just open ANY 1st year business/economics textbook.

eco101

Why buy foreign Mega motors when you can buy American Neu motors?
Why buy Futaba when you can buy Spektrum (fyi - both are made in China)?
etc.
buying locally does not equate to opposing free trade/closed economy. even buying only local manufactured goods does not equate to opposing free trade/closed economy. that is merely consumer preference and not protectionist policy.

protectionism is regulation. preferring to buy locally is simply demand.
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