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Free Trade,
The Road to Peace |
[Reprinted from the
Henry George News, November, 1957]
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Selim Tideman, who was until his retirement a lew years ago
an electrical engineer, is a member 0/ the lamous Tideman lamily ol
Chicago. The Tidemans were largely responsible for launching the
Georgist movement and starting the Henry George School in Chicago. Selim
Tideman was an enthusiastic participant in the International Conference
held in Denmark in 1952 for Land Value Taxation and Free Trade. Three
additional articles by him will appear in future issues of The Henry
George News.
We frequently forget that the program presented to the world by Henry
George, in addition to making We resources of the earth the common
heritage of all the people and collecting the social value of the land
in the form of a tax for the benefit of society at large, also
emphasized the importance of freedom of trade between nations. He would
abolish all customs duties.
For hundreds of years the opportunity to work has been classed as a
privilege. 'Work, rather than its product, has been regarded as the all
important boon. As labor saving machinery was coming into existence, the
mass of workers feared the loss of their jobs instead of exulting at the
prospect of more goods resulting from their work. It remains basic labor
union philosophy that jobs must be conserved even when such jobs are
completely unproductive. Unions are organized in crafts where control
over jobs against rival unions is a matter of constant contention and
the "right to work" means the denial of this right to others.
The constant demand for a shorter work week is based on spreading a
limited amount of work around to a greater number, The fact that
national wealth and well-being is based on output and availability of
goods seems beyond understanding.
In much of Europe industry is organized on a system of quotas to hold
production down and make possible a price structure that will make high
profits with out-moded production methods. In some industries only the
minimum needs are produced to be sold at scarcity prices, and the demand
for jobs is satisfied with inferior production equipment. This procedure
is countenanced by governments as being beneficial to the people at
large because it produces jobs and profits.
Western Germany now is proud of its export record, confessedly
accomplished by inducing its labor force to accept a lower standard of
living than would obtain if more of its products were of a kind to be
consumed at home.
These systems would be infringed if the goods thus denied to the people
could be imported from abroad; therefore protective tariffs are enacted.
In this country where, generally speaking, production is free, there are
tremendous advances in production machinery. We harbor a deadly fear
that an influx of goods would lower our standard of living --
consequently we enact tariffs to protect our 'right to work'' and to
make profits.
In capitalist circles those who most resent labor monopoly are
horrified at the mention of free trade. It would simply allow for the
movement of goods into this country in exchange for our largess to other
nations for the money they owe us, and in exchange for our own products
which other nations need to buy. It is hard to disabuse the mind of the
idea that the pieces of paper that come into our country in exchange for
exports are not wealth until exchanged for real goods produced by the
creditor nation.
Tariffs and Reparations
The first world war resulted from the search for foreign markets for
goods that should have been enjoyed by the producers in the home
country. The second had its seeds in the demand on Germany for
reparations, coincidental with creditor nations erecting tariff walls
that made it impossible to pay these reparations with goods, and our own
country refusing to accept German goods in exchange for much needed
materials. And when a nation must import and cannot sell, its credit
collapses and its currency loses its value. If free trade were universal
all currencies would find their basic value and having found it would
stay put and could easily be converted into a universal medium
acceptable the world over, as the dollar is in our states. Free trade,
making goods cheaper, also is the answer to our inflation problems.
If, in addition to free trade all travel restrictions were removed, all
tendency to war would be eliminated. It is the only road to peace.
What is the alternative? As the world is now moving, with humanity
trespassing in the workshop of the Creator for more deadly weapons, it
is not clear but what the human race, or perhaps all living things, may
be exterminated.
Freedom has been converted from a state of being to a force, the only
force that can conquer in the battle for survival.
We are challenging Russia to reduce armaments. Suppose that instead of
this we were to challenge her to open her markets to us without
restrictions, to open the country to free travel, and in turn offer her
the same advantage with us. She would probably decline. But what a
magnificent gesture! If accepted a thousand Communist spies could not
harm us. Probably a thousand Americans preaching freedom would not turn
Russia from socialism. Retreat from socialism is very difficult. Getting
into it is much easier, but with 60 percent of our population living in
their own homes, it is folly of us to fear it.
This challenge would be very difficult for the Russian rulers to
interpret as a warlike gesture and if accepted the idea would be
emulated the world over. Civilization and humanity would have great
opportunity for progress.
Cobden, in his day maligned because opposed to war, tied peace
unconditionally to free trade and went to great exertion to convince not
only his own but other governments of this. If our Constitution were
abolished except the prohibition against a tariff between the states, we
would still have a nation. If this provision were stricken out, our
nation would fall apart.
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