Postwar Optimism about the Economic Benefits of International Trade (1965)

Transcript

Hide -

negotiations is that the general agreement on tariffs and tray why should a macro lot more trade especially with other developed nations when we produce so much write your goal no trade and reciprocal tariffs were down what economists call comparative advantage and specialization a function that example rescue only produces small cars are united states produces better crops and as we buy more oil cartons they buy more show it the theory is that in the long run increased world trade will benefit everybody but this is lord keynes once remarked in the long run we'll also all be dead politicians and concerned citizens are often afraid of what parrott negotiations will do in the short run from our and the immediate hardships of change changing industries change of jobs for individual workers shade of technologies are a

real hot with trading bloc's with increased world trade the developed countries of the world are richer today than they've ever been and they will pony is after world war two europeans returned if at all by its prosperity and our best reserve an increased production continues to rise i think that in nineteen forty five wasted and destroyed factories an economy long haul shattered my mom thank you

built on this economic recovery think blast from an american point of view of a great trading market in which americans as well as europeans can buy and sell once the momentum has been established prosperity bills itself as a longshoreman that the only american to profit by trade so the kansas farmers one fifth of their harvest goes oversee these men are inspecting machine so far nations american consumers know it was joyous in it the united states is the

world's greatest trading nation we sell twenty eight billion dollars worth of goods overseas to europe and the common market buys twenty three billion in nineteen fifty eight the common market was established with america's strong support six countries france west germany italy belgium the netherlands and luxembourg began the construction of a tariff free economic union expected to be completed in nineteen seventy prosperity will bring us a greater market by nineteen sixty four common market countries have already recused internal tariffs by sixty percent rate among member states more than doubled between nineteen fifty eight nineteen sixty three imports from outside countries increased by his research the figures tell only the outlines of the story on the hard bargaining a potential this allocation in certain

countries what kind of hardship will this one french week flows into italy and france with its letters so i was able to produce wheat more cheaply than italy or germany you know others face hardship and farmers will prosper

Postwar Optimism about the Economic Benefits of International Trade (1965)

In the aftermath of World War II, the ascendant United States played a central role in an economic order built on international trade. While tariffs to protect domestic manufacturing had been the norm since the 19th century, mid-century economists argued that reduction of trade barriers would promote economic prosperity for all involved. The General Agreement on Tariffs and Trade was signed by 23 major nations in 1947 with this dream in mind. The excerpt, from a 1965 news series entitled Great Decisions, embodies this optimism about international trade. At the outset, former U.S. Assistant Secretary of State Roger Hilsman cites the economic theory of comparative advantage while arguing for the long-term benefits of global trade. The succeeding portion of the clip channels the view of international commerce that prevailed among Western leaders in the postwar era: international trade created a “miracle of economic recovery” for countries recently devastated by World War II.

Great Decisions 1965; 3; Trade, Food and Dollars: What Policies for the US? | WNDT | 1965 This video clip and associated transcript appear from 03:19 - 07:18 in the full record.

View Full Record