The Cost of Comparative Advantage

The advocates of Free Trade deals between countries frequently cite the fact that more products are made available at a lower cost to consumers as proof that their idea makes economic sense. Their explanation of how this works rests on the idea of Comparative Advantage,[1] the idea that one country can produce a good at a lower opportunity cost than other countries. Based on this idea, if the industries in one country focus on those products where they have the lowest opportunity cost, and import products where they don't, this provides an abundance of lower priced goods for everyone. For the advocates of Free Trade, price [2] appears to be the ultimate test of what is economically good. They scoff at opponents and critics of Free Trade as if their criticisms of it are completely without merit. Even some economists who have dared to question Free Trade, still try to uphold Comparative Advantage as a reasonable idea.[3] The reality is that the Free Trade ideology ultimately rests on Comparative Advantage. Therefore, it is prudent to examine the criticisms of it to see if they do, in fact, merit consideration. I believe that history has proven that they do.

Global Trade vs. Free Trade

Those who know the positions of distributists will understand that we are generally not in favor of modern "Free Trade" schemes. It seems, however, that some may misinterpret this and conclude that we are isolationists. After all, it is not unfair to say that we are not only in favor of localism, but that we put more emphasis on it than others who also favor that idea. This has led some to question what a distributist position on trade would be.

Is Distributism a Socialist Cult?

I know a lot of Catholics who really like the YouTube channel of Dr. Taylor Marshall. They view him as one of the few reliable commentators on the Faith and living it in today's world. That is why I was so disappointed when I watched "Against Catholic Distributism w Dr Jay Richards and #TnT (Dr Marshall #234)." I have to admit that it was an extreme struggle to watch this video because it was a one hour and ten minute, non-stop misrepresentation of Distributism and distributists. To be honest, the first time I saw it, I could only get through about six minutes before I was so frustrated that I stopped. I regret that I did not continue at that time and write this article before now.

Protecting the vote of the people

When the officers of government are chosen by the vote of the people, it is crucial that the people can trust the process of having elections and counting the votes. As long as there have been elections, there have been problems with them. Over time, societies have worked out how to mitigate these problems so that the people can feel confident in the process. The recent introduction of modern technology into the process is hailed as bringing elections into the current age by some, but has been the cause of not trusting the process for others. The recent event of the Democrat Party's caucus in Iowa has brought this issue to the forefront again.

Payday Lending

by Thomas Storck

As we approach Christmas, the great feast of our Lord's Nativity, many people are thinking about gift giving. But for many Americans, those with limited incomes and limited savings, gift giving can be an occasion more for anxiety than for joyful anticipation. With little money, some of these people might resort to an extreme form of borrowing to pay for their Christmas giving: payday lending.

How Do the Joneses Keep Up?

 

by Dana Krull

The following article is reprinted with permission from the Fall 2019 newsletter of the Holy Family Soup Kitchen and Food Pantry, a ministry of Holy Family Catholic Church in Columbus, Ohio.