Wednesday , 22 May 2024

There is NOTHING Wrong With Outsourcing or Free Trade. Here's Why

 Outsourcing is a good thing, despite our two presidential opponents excoriating each other over it…. Trade xenophobia is a political tool to divert blame from where it belongs – government – [and]…politicians who talk about “fair” trade are just trying to justify more protectionism…[which] always make people poorer rather than MORE prosperous. [Let me explain.] Words: 430

So says Monty Pelerin ( in edited excerpts from his original article*.

Lorimer Wilson, editor of (Your Key to Making Money!) and (A site for sore eyes and inquisitive minds) has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

Pelerin goes on to say, in part:

Harry Binswanger provides a defense for outsourcing in a recent Forbes article excerpted below:

Americanism means individualism, but “Hire American” is collectivist, urging businesses to pay more just to patronize “our guys.” This is not rational patriotism, it is not Americanism, it is primitive tribalism.

An individualist makes his purchases based on economic merit, not nationality. Let’s be clear: Economic nationalism is as outrageous as racism. Men, their products and their services must be judged on the basis of their individual, factual qualities, not on issues of race or nationality.

Trade is good, not bad, regardless of whether it is with your neighbor or someone outside the country. So too is outsourcing. It makes everyone more prosperous. Just as no individual should attempt to be self-sufficient (it is a recipe for poverty), neither should any country. Trade promotes peace and harmony among people and nations. Trade enables all to be better off.

Adam Smith observed:

The propensity to truck, barter and exchange one thing for another is common to all men, and to be found in no other race of animals.

If a country cannot create enough jobs internally, that does not argue against free trade. Such a condition is indicative of bad domestic policies. Free trade and outsourcing are natural and not at all inconsistent with full employment. So long as domestic policies encourage free markets, initiative and allow proper rewards, there will be no employment problems, regardless of the amount of outsourcing or buying abroad.

People are ingenious, when allowed to act in their own self-interest. Outsourcing is a means to further the wealth of a nation, not a detriment. Only when government gets in the way does employment become an issue. When that happens, those in government will quickly blame everything else on the problem. Trade xenophobia is a political tool to divert blame from where it belongs.


Countries that complain about free trade should look inward, not outward. Free trade is to everyone’s benefit. It has no bad effects. Problems blamed on free trade result from bad domestic problems caused by bad governmental laws and regulations.

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* – H/T to Brian W.

Editor’s Note: The above post may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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