Economic illiteracy is often linked to a lack of human decency, especially when it comes to international trade relations. Take, for example, the comparison between the American government and the Vietnamese people.
The average Vietnamese individual produces a value of $15,194 per year in GDP per capita, which equates to their income level. In contrast, the United States boasts a GDP per capita of $81,665, over five times higher than that of Vietnam. This stark difference highlights the poverty faced by the Vietnamese population.
The history of the Vietnamese people has been marred by exploitation, particularly under the communist regime in the North. The American-led war against communism in the South further compounded their struggles. Despite being abandoned by the American government, the Vietnamese have managed to improve their economic situation under a softer communist regime that allows for some entrepreneurship and free enterprise.
When it comes to getting rich or richer, there are three main avenues: looting the rich, looting the poor (as seen in communist societies), or engaging in trade. The latter is how many Americans have achieved wealth. Trade plays a crucial role in lifting people out of poverty, with around 30% of Vietnam’s growing income coming from selling goods to Americans.
The trade relationship between the US and Vietnam has been beneficial for both parties, with Vietnamese exports partially filling the gap left by the US-China trade war. While some may argue that the trade deficit with Vietnam is a cause for concern, economic theory and experience show that individuals on both sides benefit from such trade relationships.
Trade disruptions may occur, but they are necessary for economic progress and wealth creation. Protecting certain industries from competition ultimately hinders overall prosperity. Mississippi, for example, has a trade deficit with California, but this does not impede their ability to import goods at competitive prices.
In conclusion, the lack of human decency in trade relations is often rooted in economic illiteracy. Embracing the principles of free trade and allowing individuals to engage in mutually beneficial transactions is key to fostering prosperity and reducing poverty. The Christian God would likely frown upon the barriers to trade that prevent individuals from reaching their full potential and improving their standard of living.
