5 May 2020

Day 44 of UK lock down: No such thing as a free trade lunch


In 1776 Adam Smith wrote, in the Wealth of Nations: “It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy. If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry, employed in a way in which we have some advantage”.
By ignoring the whole-life cost, which takes into account the social and environmental price of manufacture, use & disposal of goods, Smith’s legacy has been one of gross inequality, back-door imperialism, sweatshops, wage slavery, and minimal to non-existent protection of workers and environment. Oh, and, in the case of smiley International Trade Secretary Liz Truss, the “inadvertent” and illegal shipping of military supplies to Saudi Arabia, twice.
That’s the same Liz Truss who was promoted as a reward for supporting Johnson in his leadership campaign and for being the architect for plans to cut taxes for people earning over £50,000. And who is now embarking on free trade negotiations with the US to “help the economy bounce back” from the Covid-19 crisis. True, this may adversely effect the much-clapped NHS, but things are definitely looking up for UK exports of pork pies and shower trays.




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