Monday, June 06, 2005

A Potential Contender for Adam Smith Prize for the Solution of the Month

William P. McGowan PhD might be a contender for the Adam Smith Solution Prize of the Month (depending on who else contributes in June) with his piece in Canyon News, Beverley Hills, California on 5 June 2005.

I quote below a paragraph from his article lauding the 'No' vote in France and the tendfency to protectionism in the EU (he does not mention the USA, however, which is as highly protectionist an economy as the EU (and to be frank, almost all other countries too):

"Smith’s main point was that protectionism was a fallacy, and that while many believed it “protected” this or that industry, it did so at the expense of the common good by forcing everyone to pay higher prices for goods and services. Examining the price of bread, Smith found that British bread was significantly more expensive than bread made with French, Russian, or Polish wheat. Since the cost of food consumed an inordinately high percentage of a poor person’s wages, the cost of this protectionism did (and still does) fall heaviest on those least able to afford it. "

But despite the above defects (plus some others, such as saying Smith favoured Britain dumping the Corn Laws and buying its food instead more cheaply from the "United States and Australia", neither of which existed as states in 1776), McGowan writes forcefully and accurately about Smith's views. This makes him a contender, at least, for the June Prize.


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