Mises’s insight into the importance of Cantillon effects can be further extended to explain not only income and wealth inequalities among individuals but also some rather curious developments in global industrial organization over the last few decades.
Trump's high-tax trade policies have been a disaster for agriculture in the United States, marked by rising suicide among farmers, and declining incomes for farming households.
Perhaps the best proof of the current divorce between theory and reality in international economics is the economists who declare themselves in favor of free trade while also opposing the removal of all tariffs and customs.
The benefits of free trade extend far beyond mere monetary gain. Free trade builds community, makes family life more affordable, and reinforces the importance of peace.
Japan's Shinzo Abe has turned to Europe in hopes of stabilizing Japan's fiscal and and monetary situation. But Europe is a shaky foundation on which to build anything.
While efforts to mandate "equality of outcome" are rightly derided, "equality of opportunity" is wrongly held up as essential. But even when we face unequal opportunities, the marketplace can still make us all better off.
