Thinking about free markets and free trade is stuck in the dark ages, although a win-lose paradigm persisted and applied right up to the industrial age. If one person or group won – another person or group had to lose. For those that long for the comfort of mud huts, famines, and feudal government systems; win-lose still holds appeal.

Win-win is better and is available: it’s called freedom.

Individual value systems are not primarily about wealth, in fact the eminent psychologist Abraham Maslow constructed a hierarchy of needs pyramid, starting with food and shelter and progressing to self actualization. Our goals in a negotiation vary depending on current needs within Maslow’s hierarchy, desires for the tangible, and verification of intangibles such as social recognition. The purpose of negotiation is acquiring satisfaction by receiving greater value than given – this is true for both involved parties.

Society has changed dramatically in the last few centuries. Unfortunately our emotions remain locked at a tribal relationship level. As a tribal member our ancestors would have lived as an extended family while fighting for survival. If I shared my meal with you, I lost – you gained, but our tribe was stronger and I was safer for it. If another tribe entered our forest, we fought for our territory. In scarcity the rule is win-lose. When wars, poverty, and famines were the rule; group action was a requirement for survival.

This creates wealth by mutually satisfactory negotiation, and by extension greater wealth in the world.

Every control on freedom adds to injustice. Laws and regulations always favor the scheming and well connected, looting the many, to benefit an elite few. Perhaps each inequity as conceived is small, but a constant drip of regulation and taxes ensures ever expanding looting of society. Government and society are not the same thing. As government expands it first limits and then exploits society.

We see the banksters and their too big government allies looting our taxes today. Our society will be ravished by the hidden taxes of inflation caused by excess money creation for generations.

Society has changed dramatically in the last few centuries. Unfortunately our emotions remain locked at a tribal relationship level. As a tribal member our ancestors would have lived as an extended family while fighting for survival. If I shared my meal with you, I lost – you gained, but our tribe was stronger and I was safer for it. If another tribe entered our forest, we fought for our territory. In scarcity the rule is win-lose. When wars, poverty, and famines were the rule; group action was a requirement for survival.

Since the industrial revolution a new philosophy of relationships has become available. Win-win does not work in scarcity, but in abundance. With each win-win interaction wealth is created, wealth that becomes available to all by reason of exchange. That creates a win-win-win opportunity every time free exchange is initiated. This does not feel natural to a tribal mind, nor can it be grasped by an educated mind that clings to a-priori reasoning.

Let’s make it simple.

If Shoes have a 100% tariff to protect the shoe industry everyone will pay twice as much for their shoes.

The shoe industry temporarily prospers – and those that receive their political donations. The government also keeps the tariff money as another hidden tax. After years of numbing protection; having no need to innovate, and rife with growing inefficiencies, the local shoe industry will be allowed to quietly die. Everyone but those in power has paid for fair trade favors given to the few. Some immediately – others will pay later.

Free trade in contrast benefits all, you get what you want for what you want to pay, or you find another supplier. If there is no reasonable supplier but a perceived demand, you can develop a marketable solution. Innovation and efficiency are rewarded. Prices go down, quality goes up. Lifestyles will improve for generations. Simple!