Recent anti-free-trade sentiments have resurfaced in Republican circles, like a relic from the past. It is a clear departure from the conservative position that fair and free trade is beneficial to the American economy, consumers, and the American Way. Conservatives should reject the voices within the GOP that want to isolate the United States and hinder its economic growth.
Free trade works. Free trade is good. Free trade is good for consumers and leads to more innovation. Remember the Reagan years when Republicans and protectionist Democrats fought to secure freer, fairer trade that led to a higher standard for all Americans? Less government interference, more freedom. The GOP, and its conservative wing in particular, is supposed to represent this.
If the idea of isolationism in the economy takes hold, it can decimate the American economic system. In a 2022 Cato Institute analysis entitled “The (Updated Case for Free Trade”), the authors concluded that “the economic benefits of free trade to individuals, businesses, and communities are undeniable, irreplaceable, and incomparable.” They also stated that “the only alternative to free trade, protectionism, has repeatedly proved to impose expensive costs for minimal benefits.” By isolating our economy with high import taxes, or tariffs, as well as other protectionist policies, Americans will be poorer, because Protectionism is a major cause of stagnating growth, and it prevents American businesses from being able to innovate to remain competitive. Conservatives should be against government interference in trade.
The Competitive Enterprise Institute’s (CEI) 2022 policy paper affirmed the fact that “trade, barter, and cash are core values of civilization.” This is much healthier than using pressure and force to stop these transactions. It is disgusting to allow government bureaucrats to make decisions for American consumers.
Many examples of foreign companies that are appreciated by American consumers help to demonstrate the benefits of free trade. SHEIN, a Singaporean fast fashion company, has recently dominated the American market. In a very short time, it has been very successful and has become an example of how certain American companies, encouraged by friendly politicians, including Republicans in Congress are pushing for protectionism over competition. SHEIN’s huge success on the American market also serves as a case of how free trade would not have brought consumers the benefits they enjoy today. SHEIN is still under fire.
SHEIN may be successful, but their real offense — in the eyes of some politicians — is that they are Chinese. Many politicians, who are deeply concerned (and rightly so) about China’s potential threat to national security, have confused privately owned Chinese companies with the communist Chinese Government. Many politicians tend to say that anything coming from China is dangerous, even if many of the companies have nothing to do with the government. Politicians may benefit from this rhetoric, but it would be detrimental to the American economy if they played protectionist games with China.
I’m not concerned about the left-wing Democratic Party, which is blinded with a hatred for all things capitalism. But I am disturbed that many Republicans ignore the fact that most of the products that keep our country competitive are made in China – iPhones being an obvious example. The majority of computers and electronic devices are made in China. Toys and furniture are largely made in China. Lists like this go on forever. While it might be a great line to use at a Rust Belt rally to talk about cutting off all trade with China, in reality, such an action would be disastrous.
Republicans should stop trying to revive tired arguments about protectionism, for whatever reason. What Would Reagan Do, guys? The Republican agenda should encourage more free trade with China and not less.
The concept of economic isolation has never been more harmful to the American economy or consumers. Republicans, say no.
