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One of the Most Famous Ideas in Economics Is Wrong
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One of the Most Famous Ideas in Economics Is Wrong

History shows that free trade can’t buy world peace.



Editorial Rating

7

Qualities

  • Eye Opening
  • Background
  • Concrete Examples

Recommendation

It’s wishful thinking to believe that free trade can solve geopolitical strife, notes professor Jacob Soll in this thought-provoking essay. History shows that the idea that free markets can rein in bullying regimes has little substance. Rather than leading governments to seek peace and harmony, free trade has most often come about through coercion – sometimes from behind the barrel of a gun. Soll’s sobering assessment reckons that geopolitical tensions are now testing democracy, as the world teeters on the brink of recession.

Take-Aways

  • The notion that free markets foster peace has historical roots.
  • The reality is that governments’ coercive behavior often drives trade.
  • The current state of geopolitical hostilities is undermining free markets.

About the Author

Jacob Soll is a professor of philosophy, history and accounting at the University of Southern California.


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