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  2. No Free Market without Rights and Rule of Law
April 17, 2025 at 11:00 PM

No Free Market without Rights and Rule of Law

Michael Minnott
@MichaelMinnott

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There has been a lot of discussion on Ricochet of late regarding free markets and free trade. I think the core problem is the naivete on the right (whether conservatives or libertarians) regarding the prerequisites for such unfettered economic associations. I was reminded of this while reading the PJ Media article below:

Georgia Factory Used Forced Labor of Trafficked Chinese Migrants

Per the more strident interpretations of free markets and trade, if we just allow the unrestricted flow of products, services and people, then the "invisible hand" of the market will unerringly lead to beneficent outcomes. This has not worked out as planned. What we have gotten instead is the immiserization of the American people while empowering oppressive slave nations like Communist China, as well as harboring slavery within the U.S. itself.

What defenders of free markets have forgotten is that any free market system requires, as an absolute, a precondition of free citizens with rights and the rule of law. Without this minimal foundation, any such free market quickly and irrevocably collapses into slavery and cronyism.

This is why I come out in favor not only of Trump's immigration enforcement domestically but also his jaundiced eye and tariffs directed at international players. A truly free trade policy can only be, and I see zero exceptions, conducted among free citizens where all parties enjoy some semblance of human rights and the rule of law. This makes trade with other Western, or Westernized, countries less problematic, but free trade with a nation like China is simply not a possibility.

This does not mean that you cannot have any trade at all with a country like China or other nations with similarly illiberal governments. It simply means that such trade must be heavily regulated, and the behavior of their business and political entities should be watched like a hawk. Such nations cannot be granted unfettered access to our economy or financial and educational institutions. What we have seen by granting this is subversion: currency manipulation, stealing IP, supporting and supplying the drug trade, Confucius Institutes on college campuses, etc. Like the Aesop fable of the Scorpion and the Frog, they cannot help themselves, for it is in their nature to harm us and to undermine our freedoms and laws.

Trade requires regulation to protect free people from the above despotic "nature". You can have free trade with free countries, but not with slave states.

This post was promoted to the Main Feed at the recommendation of Ricochet's members.

Discussion (27)

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    kedavis@kedavis·1y

    Well put.

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    Addiction Is A Choice@AddictionIsAChoice·1y
    Michael Minnott (View Post):
    No Free Market without Rights and Rule of Law

    DING-DING-DING!!!

    In his terrific book "The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else," Hernando de Soto makes the case that the rule-of-law and clearly-delineated property-rights are the keys to freedom and prosperity.

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    Mark Camp@MarkCamp·1y

    Jj

    Michael,

    I think that you must be very careful, when using the term free market to refute a given argument against protectionism, that it has precisely the same meaning in both arguments.

    I believe that if we do so, we will discover that the above welfare-economic argument against the liberty of the citizen in a republic to trade freely with residents of despotic countries is not logical, and that it unintentionally opens the door to despotism at home.

    SDG

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    Painter Jean@PainterJean·1y

    Without this minimal foundation any such free market quickly, irrevocably collapses into slavery and cronyism.

    And cronyism comes with tariffs, as has been so amply demonstrated as of late: If you're the head of Apple, you can talk to Trump and get an exemption. If you're a small manufacturer, forget it. If Trump likes what people say about him on TikTok, then it's OK that it's operated by the CCP and is a propaganda tool for them - as long as Trump likes TikTok, that's all that matters!

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    Michael Minnott@MichaelMinnott·1y
    ReplyingtoPainter Jean

    Painter Jean (View Comment):

    Without this minimal foundation any such free market quickly, irrevocably collapses into slavery and cronyism.

    And cronyism comes with tariffs, as has been so amply demonstrated as of late: If you’re the head of Apple, you can talk to Trump and get an exemption. If you’re a small manufacturer, forget it. If Trump likes what people say about him on TikTok, then it’s OK that it’s operated by the CCP and is a propaganda tool for them – as long as Trump likes TikTok, that’s all that matters!

    I don't think that's quite correct. Apple is presently working to move their production out of China to countries like India. This follows a general trend of companies divesting from the CCP. Trump cannot take all the crefit for this, but his tariffs offer a welcome assist and have lit a fire under their backsides to expedite the process.

    Trump has modified the tariffs based on countries acquiesing to his demands. I don't see any indication that it is based on personal flattery, much less TikTok videos.

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