The trading nation concept is the economic philosophy that believes that all nations should be free to trade freely in order for all nations to have free market economies. A trading nation is simply a nation in which foreign trade constitutes a large portion of its gross domestic product. Because the United States is a trading nation, this is something that we take for granted and accept as the way things should be. Unfortunately, the system that was developed by the US government did not work and the reason that this happened is because our politicians have failed to teach the people what capitalism really means. In this article I will be discussing why it is necessary for anyone to learn the true principles of free enterprise.
The fact of the matter is that if we continue to allow our nation to follow the trading nation paradigm, we will continue to suffer from economic turmoil. For example, when China joined the World Trade Organization (WTO), everybody was excited and everybody said that this would bring about more exports for the United States. However, nothing happened as China’s economy became too strong and they began to take over other countries that were not in their sphere of influence. China has become a major player on global markets and they are not going to stop just because we want them to. The best thing that we can do right now is to start educating the American people so that they will fully understand the threats that come from an unchecked Chinese economy.
As a result, the United States needs to start giving China a reason not to overcharge and devalue their currency, otherwise the whole process will be ineffective. China’s current growth path is causing problems for the American economy, but if we start giving them enough reasons to increase exports, then that will be good for everybody, including our American exporters. Please consider all this.