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wadavis comments on Open thread, 9-15 June 2014 - Less Wrong Discussion

3 Post author: Tenoke 09 June 2014 01:07PM

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Comment author: wadavis 09 June 2014 04:50:23PM *  2 points [-]

This is a big issue, the root of protectionism vs. free trade.

My first example is the National Energy Program from the 1970s to 1980s in Canada. Left Canada (Alice) legislated the prices Right Canada (Bob) could sell their oil to Alice while the World (Charlie) was offering higher prices.

The second example is a little more convoluted but have a look at the Canada–United States softwood lumber dispute. In this case Bob and Alice are producing newspapers for $5 and $7 respectively. Charlie is a newspaper distributer wants to protect Alice who is his sister, so he charges the buyers an extra $2 for Bob's papers to keep things fair.

Edited for spelling.

Comment author: Slider 09 June 2014 06:03:11PM 2 points [-]

Don't you mean free trade? Fair trade is about ensuring a non-poverty compensation to workers in poor production countries which wouln't be that opposed to protectionism.