Principle

We all live on one planet with a limited amount of natural resources. The way we share those resources will determine whether or not civilization thrives or collapses.  The authors on this blog believe that free people will share the world’s resources best.

Free People Share Best

Adam Smith stated in his 1776 treatise “On The Wealth of Nations” that trade creates wealth.  More specifically, voluntary trade between two parties MUST create value for both parties because, if it didn’t, they would simply not make a transaction.  This means that by trading, people generate more value in the world.  They create a net gain.

This net gain is described by the economic law of comparative advantage which “explains how trade can create value for both parties even when one can produce all goods with fewer resources than the other.”  Comparative advantage ensures that everyone, from the weakest peasant to the stronger titan of industry creates value in the marketplace through trade.