If there is one thing I have learned after 22 years, it is that we all have a pet peeve or two. I am no different. Call me quirky, but muddled economic arguments get my attention like fingernails on a chalkboard. Therefore, I must express my disagreement with Travis Metcalfe's column in Tuesday's edition of The Observer. He has valid concerns regarding the Free Trade Area of the Americas (FTAA), and I applaud him for voicing them, but the conclusions he draws ignore basic economic theory.

In short, Mr. Metcalfe argues that the FTAA is not in the best interest of consumers, workers or society as a whole and only corporations would benefit from the implementation of the trade agreement. These claims are easy to make, but they do not stand up to basic economic analysis.

Everyone who has taken (or should I say passed) an introductory economics course could explain to Mr. Metcalfe that when two or more counties engage in free trade, both countries benefit (due to comparative advantage). Certainly, introducing free trade can initially be disruptive to a country's economy, but in the long run consumers enjoy lower prices and a larger selection of goods and services, workers have more and better paying job opportunities and society as a whole becomes wealthier (this is a good thing).

One can raise credible objections to completely free trade (regarding issues of national security, for instance), but Mr. Metcalfe does not. Instead, he relies on the concept of "exploitation" to argue against increased trade. Of course, the word "exploitation" immediately draws the attention of many, especially those opposed to a market-based economy. However, free trade does not promote exploitation, but rather opportunities, especially for poor countries.

Ideally, everyone in the world would make $30,000 a year, but the harsh reality is that in poor Latin America countries most people are content to make $3,000 or $4,000, and often even less. Continuing to deny them access to world markets only condemns them to remain at this unacceptably low level of income. On the other hand encouraging trade, even with already wealthy countries, offers them the opportunity to raise their standard of living. This will not happen overnight, but without free trade, it may not happen at all.

Patrick Blaney

senior

off-campus

April 3, 2001

• Having the readiness to sacrifice
  
• Thank you for support in our tragedy
  
• Show Saint Mary's the money
  
• In defense of free trade
  
• People cannot be contained by race
  
• Take charge of your taco
  
• Quote of the Day