Suppose that any country wants to have a truly free-markey economy. Would it be possible? Considering the damage that centralized-power institutions (FED, ECB, FMI, WBG) make to the economy and the impact that their decisions have on world economy, every country is encouraged to adopt a “strategical trade” position towards world trade. Is there any solution to this problem? I think that one solution could be boycotting those institutions and industries that are heavily linked to economic power, buy that decision would be very arbitrary and could mean an approach to an autarkic economic. Any answers?
I’ve thought about that. What if a foreign nation embargoes our products, and we can’t embargo theirs?
Answer: Peace through trade.
If we drop the tax rate to zero percent and unilaterally open the borders, we would attract foreign capital from all over the world and quickly become the industrial capital of the world. Any nation that would try to try to boycott us would do so at their own expense. It’s like trying to boycott mideast oil; it just doesn’t work.
So what is left for a foreign superstate to do to us? They can boycott us, but we are not affected because the rest of the world still wants to buy what we have. They can invade us, but there is a gun behind every blade of grass. They can nuke us, but it cuts into their own profits. For example, some mideast Islamic wack job can threaten to wipe us off the map, but in doing so he would destroy the world’s largest oil-importing industrial economy. Why would he do that?
Another aspect to look at is that politicians are very corrupt and will cheat their own governments at every opportunity. I’ve often wondered why the elites don’t try to shut down the anonymous, numbered Swiss bank accounts, until I realized the reason: because they themselves benefit from the secrecy. They want to have a place to hide their embezzled tax dollars. We would be another Switzerland; people all over the world would hide their money in our pockets, and their governments would turn a blind eye, because they themselves are red-handed.
Besides, our country would not invade foreign countries, so there is less provocation for them to invade us. We would sleep soundly every night, with no enemies to fear. We would be safe is a world full of WMD’s, without a single long-range bomber at our disposal.
Radical, I know…