Free Trade Versus Supply management

 Free Trade Versus Supply management

Let us get something right from the get go.  It is that free trade does not exist and never has.  How can it? Trade is always a ttransaction between peers mediated by communication of needs.  That is about as close to free as one ever gets. freedom is not freedom from needs.

After saying that we have regulated or organized trade or alternatively unregulated trade usually superceded by regulated trade. A lot of the regulation is government induced to provide revenue.  Obviously getting the government or chief pig out of the equation is often called free trade as it perhaps should.

What i am saying though is that you cannot build a supply business without managing consumption access and thus protecting down stream margins.  government protects this process with anti dumping rules.  What that means in practise is no Washington State cherries while harvesting Okanagon Cherries otherwise thousands of orchards go bankrupt and all that.

I use agriculture, but exactly the same applies to aspirin and any and all comodities. Bayer still sells aspirin whose patents ran out in the nineteenth century.

The long term problem is that regulated supply management has induced capital accumulation that works against weaker competators.  Capital induced Gigantism then develops it own weaknesses which creates serious vulnerabilities often postponed by capital access.

The long term solution will be implementation of the Rule of Twelve along with fiat management under its control.  Gigantism is heading toward a surcharge to obviate risk.  TOO BIG to FAIL is an OXYMORON.  Ask Russia.