Free trade versus community: Social and environmental consequences of free trade in a world with capital mobility and overpopulated regions

Free trade based on comparative advantage is a widely accepted economic doctrine. The pure logic of comparative advantage, within the context of its assumptions, is unassailable. However, in a world characterized by demographic explosion, ecological stress, and free capital mobility, free trade does not serve the interests of wage-earners in countries with a relatively higher standard of living; it tends to undermine the national community that embraces both labor and capital.For a more extended discussion of some of the issues raised here, see Herman E. Daly and John B. Cobb, Jr. (1989).For the common good: redirecting the economy toward community, the environment, and A sustainable future. Boston: Beacon Press.