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3 Cato J. 751 (1983-1984)
The Political Economy of Trade Policy: A Comment

handle is hein.journals/catoj3 and id is 759 raw text is: THE POLITICAL ECONOMY OF TRADE POLICY: A COMMENT Subroto Roy Michael Finger has given us a most engaging paper.' The funda- mental paradox he sets before us is one that is both ancient and simple to state. The intellectual case for free trade and against mer- cantilism appears clear, compelling, and conclusive. From Adam Smith, Ricardo, and Torrens to Haberler, Heckscher, and Ohlin, it has been among the most obvious contributions that economics has made to objective knowledge. Yet, at the same time, nowhere is the academic economist more at a loss in explaining to his students how it is that the theory on the blackboard and the reality outside the window are so widely at odds with one another. For, in practice, it appears almost always and everywhere that it is the argument for free trade that has to be made over and over again. There are, it seems to me, two ways to respond to this paradox. The first is to think that the theory must be mistaken, or at least that the descriptions the theory is based upon are seriously incomplete. The second is to think that there are dark forces of power and interest that prevent truth and reason from coming to light. Mr. Finger's arguments seem to tilt heavily-perhaps too heavily-toward the second explanation. He offers us a vivid picture of society. On the one hand is the Great Anonymous Consuming Public, consisting of the multitudes of gro- cers, bricklayers, watchmakers, carpenters, truck drivers, cooks, shop assistants, plumbers, and so on. On the other hand is the tiny group of the educated and the powerful whom Mr. Finger calls the policy community. Within this community are first, the academic econo- mists who teach and publish in the field of international trade, and Cato journal, Vol. 3, No. 3 (Winter 1983/84). Copyright Q Cato Institute. All rights reserved. The author is Assistant Professor of Economics at Virginia Polytechnic Institute and State University, Blacksburg, Va. 24061. 'The Political Economy of Trade Policy, Cato journal 3 (Winter 1983/84): 743-50. 751

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