Happy to see people talking about “trade mindset” as a thing!
When you’re proposing a trade that gives the poor a fungible resource, you should wonder whether rent extraction will, in the long run, keep pace with their ability to pay.
That seems like an argument for a social safety net—a government guarantee that rent extractors can’t push you below a certain standard of living. (Though it can’t be basic income, because basic income can be rent-extracted away. Something like free healthcare for all is a better idea.) Safety nets are compatible with free trade, e.g. Krugman advocates for both.
Happy to see people talking about “trade mindset” as a thing!
That seems like an argument for a social safety net—a government guarantee that rent extractors can’t push you below a certain standard of living. (Though it can’t be basic income, because basic income can be rent-extracted away. Something like free healthcare for all is a better idea.) Safety nets are compatible with free trade, e.g. Krugman advocates for both.