Protectionism isn’t just economically destructive, it is also an environmental hazard. Agricultural protectionism is usually couched in terms of ‘self sufficiency’ or in the US the “Locavore’s dilemma”.
An excerpt from a Book Review at the Wall Street Journal explains why: (hat tip Cato’s David Boaz) [bold emphasis mine]
Pierre Desrochers and Hiroko Shimizu seem to have had the most fun among this group of authors. "The Locavore's Dilemma" argues that the benefits of eating local have been vastly overstated by food activists and its serious detriments swept under the rug. The tone is distinctly upbeat, no doubt because being a gleeful debunker is fun but also because the two authors are resolutely cheerful about the world's food situation.
Mr. Desrochers and Ms. Shimizu, a married couple who are both professional economists, present a counterintuitive but well-supported case that local self-sufficiency is the worst thing you can do for the environment, since it requires many crops to be grown in the wrong places, with damaging ecological consequences. American farmers, they observe, used to grow wheat locally in the Shenandoah Valley, tilling steep and rocky slopes—and unleashing a torrent of soil erosion. With the shift of grain farming to the far more productive and erosion-resistant soils of the Midwest, "more grain is now being produced on fewer acres and, overall, more habitat is available for wildlife." Their study of the history of American agriculture is one of the strongest points of this book.
Famines were common in the past precisely because food security rested on the vagaries of local conditions rather than the resiliency of trade, they observe: "Subsistence farmers periodically starve while commercial agricultural producers who rely on monocultures for their livelihood don't."
The global economy is beset by unfair trade practices—under the label of “Free Trade”—causing an increasing number of developed nations to protect their few remaining unionized workers against competition from lower-paid, third-world labor forces that have fewer benefits and are not hampered by safety and environmental regulations, at least not to the same extent. Overpriced labor forces employers to look elsewhere where skills and productivity are equal or better and transportation costs to markets are feasible.
ReplyDeleteThe fact is that if nations want free trade, no treaties are necessary. Present “free trade” treaties are protectionist documents outlining items to be excluded from free exchange; they are designed to protect manufacturers, farmers, labor unions, and pharmaceutical researchers, etc. Import inspections under the guise of sanitary safety standards are frequently employed to circumvent free access to agricultural markets that are the most highly subsidized and protected. Legal recourse exists but is useless when perishable products are delayed. Higher fines must be imposed when this practice is found to be abusive.
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