Friday, June 03, 2011

Free Trade’s Influence on Culture

Even a culture of hate, bigotry and intolerance can be reformed by free trade.

From the Slate, (hat tip David Boaz)

If a century seems like a long time for a culture of racism to persist, consider the findings of a recent study on the persistence of anti-Semitism in Germany: Communities that murdered their Jewish populations during the 14th-century Black Death pogroms were more likely to demonstrate a violent hatred of Jews nearly 600 years later. A culture of intolerance can be very persistent indeed.

Changing any aspect of culture—the norms, attitudes, and "unwritten rules" of a group—isn't easy. Beliefs are passed down from parent to child—positions on everything from childbearing to religious beliefs to risk-taking are transmitted across generations. Newcomers, meanwhile, may be attracted by the culture of their chosen home—Europeans longing for smaller government and lower taxes choose to move to the United States, for example, while Americans looking for Big Brotherly government move in the other direction. Once they arrive, these migrants tend to take on the attitudes of those around them—American-born Italians hold more "American" views with each subsequent generation.

"Good" cultural attitudes—like trust and tolerance—may thus be sustained across generations. But the flipside is that "bad" attitudes—mutual hatred and xenophobia—may also persist.

How trade changes culture... (bold highlights mine)

Not all cities like Würzburg were so unwavering in their anti-Semitism, however. Those with more of an outward orientation—in particular, cities that were a part of the Hanseatic League of Northern Europe, which brought outside influence via commerce and trade—showed almost no correlation between medieval and modern pogroms. The same was true for cities with high rates of population growth—with sufficient in-migration, the newcomers may have changed the attitudes of the local culture.

The simple point is that trade promotes social cooperation and has the power to change beliefs and culture. And the above is an anecdotal evidence of this.

Once again this validates the theories of the great Ludwig von Mises who wrote,

The market is that state of affairs under which I am giving something to you in order to receive something from you. I don't know how many of you have some inkling, or idea, of the Latin language, but in a Latin pronouncement 2,000 years ago already, there was the best description of the market — do ut des — I give in order that you should give. I contribute something in order that you should contribute something else. Out of this there developed human society, the market, peaceful cooperation of individuals. Social cooperation means the division of labor.

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