Free trade and no full employment
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Free trade and no full employment book
This chapter deals with the wealthy European countries: Austria, Benelux, France, Germany, Italy, Scandinavia, Switzerland and the UK. In affluent countries the unemployment catastrophe has led to changed government policies. Several of these are listed – some have already been adopted while others are in the pipeline. The father of Free Trade was of course opposed to export subsidies. These might induce an increase in exports but they 'must be altogether at the expense of the home market; as every bushel of corn which is exported by means of the bounty, and which would have remained in the home market to increase the consumption, and to lower the price of that commodity. Writings on international trade, and particularly post-1975 Free Trade hosannas, should be scrutinised to ascertain whether they mention the basic assumption of full employment without which the Free Trade arguments make no sense.