What Happens When People Are Free to Trade?

Column for week of November 17, 2014

     We have considered satisfaction, the ultimate goal that
we all seek.  Part of the consideration was of how we influence
others to do the things that satisfy us.  We will now give
further consideration to the trading of satisfactions. 
Exchanging lesser satisfactions for greater ones is the sole
objective of free trade.

     There are two kinds of exchanges, forced ones and
voluntary ones.  A trade isn't voluntary unless all parties to the
trade voluntary participate without coercion.  A forced trade
isn't really a trade.  It is at least in part a forced taking, also
known as theft.

     When a bully forces another child to "trade" sandwiches
the bully is forcibly taking something.  Perhaps the other child
would have freely traded half of his sandwich for the bully's
sandwich.  In such case the bully traded his sandwich for half
of the other sandwich and forcibly took the other half.  Half a
theft is still theft.  The victim is forced to give up satisfaction
rather than being compensated by getting a greater satisfaction
than he lost.

     Instead of the bully taking the sandwich, he may
prevent its owner from trading for something, perhaps a cookie,
he believes will increase his satisfaction.  The victim has still
been forcibly deprived of satisfaction.

     In fully free trade everyone is free to trade for anything
with anyone.  Of course, that someone else always has veto
power over the trade.  He doesn't have to settle for decreased
satisfaction.

     How important is trade?  What do you have or consume
that you produced for yourself?  Without trade or gifts, or theft
you wouldn't have anything you didn't produce.  What would
your life be like?  Could you even survive?

     Trade is one of the cornerstones of our prosperity. 
Without trade and the specialization it makes possible, most
people would have very little.  Most of us would live on the
edge of survival, or not survive.

     All free trade is motivated by the desire to obtain
something that will yield greater satisfaction.  How can both
parties to a trade gain satisfaction?  It is because both don't
expect the same satisfaction from the things traded.

     Alice has apples.  Betty has potatoes.  Betty offers a
potato for an apple.  Alice says no.  She values the satisfaction
from the apple more than that from the potato.  Betty raises her
offer until it reaches 10 potatoes.  Alice accepts.  She values 10
potatoes more than one apple.  Betty places the greater value
on the apple.  Both gain satisfaction.

     This example also illustrates the point that the more
value we offer someone, the more value they will offer back. 
In other words, the better we serve others, the better they will
serve us.  If we want more from others, we must produce more
for them.  No one is ripping anyone off.

     This reality motivates free people to endlessly seek to
serve others better.  We don't serve others because we aren't
selfish.  We serve them because we are selfish.  We want more
and serve others better to get it.

     If we become satisfied with what we are getting, we no
longer have any reason to increase our service to others.  Why
train for a different job that better serves others unless we are
trying to get more satisfaction for ourselves?

     I'm sure that when people train for and seek higher
paying jobs they don't spend a lot of time thinking about
serving others better.  They most likely think about what they
will get.  If the higher paying job didn't serve others better, it
wouldn't be higher paying, unless it is a government job.

     The gains possible through free trade push everyone to
increased productivity and increased service to others.  It is the
only way to organize society without creating winners and
losers.

     Next time:  The alternative to free trade.

aldmccallum@gmail.com
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Copyright 2014
Albert D. McCallum