Anne McElvoy, an executive editor at Politico, joins a panel that includes Ash Sarkar, a journalist from Navara Media, and Mariana Mazzucato, an economist from UCL. They dive into the moral implications of free trade amidst global economic tensions. Topics include the ethical dilemmas of tariffs set by Trump, the adverse impact on American workers, and wealth inequality. The discussion highlights the chasm between economic metrics and everyday realities, questioning how trade policies can be both a source of poverty alleviation and a mechanism of exploitation.
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Shifting Political Alliances on Trade
It's now difficult to predict trade policy positions based on traditional political alignments.
The right-wing US administration advocates trade policies historically championed by the radical left.
insights INSIGHT
Tariffs: A Power Play, Not Economic Strategy
Trump's tariffs are driven by power, not economic principles, and will likely hurt American workers.
Tariffs are only justifiable when supporting developing industries, not dismantling existing industrial strategies.
insights INSIGHT
Government's Role in Shaping the Economy
Governments should have a clear economic agenda.
They can shape market tools and institutions rather than being strictly bound by them.
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Published in 1776, 'The Wealth of Nations' is Adam Smith's magnum opus that laid the groundwork for modern economics. The book critiques mercantilist economic theories and introduces the concept of the 'invisible hand,' which describes how individual self-interest leads to societal benefit. It emphasizes the division of labor, the accumulation of capital, and the importance of free markets. Smith argues that a nation's wealth is not measured by its gold and silver reserves but by the stream of goods and services it produces. The book also outlines the core functions of government, such as maintaining defense, enforcing civil law, and promoting education, while advocating for limited government intervention in market activities.
President Trump has imposed tariffs on all America’s trade; China has hit back; other nations, including our own, are working out how to cope with what Sir Keir Starmer has called a “new world” governed by “deals and alliances” rather than rules. In this crisis, we have turned to the economists, who argue about percentages. But shouldn't we be asking – what is the moral thing to do?
Trump’s ‘MAGA’ project always said it wanted tariff barriers to revive US industry and rebalance world trade; the American voters chose that strong medicine; now they – and the rest of the world – must swallow it. The first question is not whether it will work; time will tell. The first question is: given the consequences for the whole world, does Trump have a moral right to exercise that mandate?
The second question is the one that confronts Britain, and all the other nations that have been reliant (perhaps too reliant) on trade and co-operation with America. It is not about numbers but about morality. The three most influential economic philosophers in history – Adam Smith, Karl Marx and J.M.Keynes – reached different conclusions about it.
Is free trade a moral good?
Chair: Michael Buerk
Producers: Peter Everett and Dan Tierney
Editor: Tim Pemberton
Panel:
Anne McElvoy
Ash Sarkar
Matthew Taylor
James Orr
Witnesses:
Mariana Mazzucato
Hamish McRae
Maxwell Marlow
Sir Dieter Helm
Moral Maze 
