TRADE AND WELL-BEING

1. TRADE AND WELL-BEING Non-empirical Observations Bryson, Marriott School

2. PART I: Observation from Scripture

3. Trade Cycles in the Book of Mormon THE BOOK OF HELAMAN CHAPTER 6, from the chapter heading. The righteous Lamanites preach to the wicked Nephites. Both peoples prosper during an era of peace and plenty. [Between 29 and 24 B.C.]

4. Trade Cycles in the Book of Mormon 1 AND it came to pass that when the sixty and second year of the reign of the judges had ended, all these things had happened and the Lamanites had become, the more part of them, a righteous people, insomuch that their righteousness did exceed that of the Nephites, because of their firmness and their steadiness in the faith.

5. Trade Cycles in the Book of Mormon 6 And it came to pass that many of the Lamanites did go into the land northward; and also Nephi and Lehi went into the land northward, to preach unto the people. And thus ended the sixty and third year.

6. Trade Cycles in the Book of Mormon 7 And behold, there was peace in all the land, insomuch that the Nephites did go into whatsoever part of the land they would, whether among the Nephites or the Lamanites.

7. Trade Cycles in the Book of Mormon 8 And it came to pass that the Lamanites did also go whithersoever they would, whether it were among the Lamanites or among the Nephites; and thus they did have free intercourse one with another, to buy and to sell, and to get gain, according to their desire.

8. Trade Cycles in the Book of Mormon 9 And it came to pass that they became exceedingly rich, both the Lamanites and the Nephites; and they did have an exceeding plenty of gold, and of silver, and of all manner of precious metals, both in the land south and in the land north.

9. Trade Cycles in the Book of Mormon 10 Now the land south was called Lehi and the land north was called Mulek, which was after the son of Zedekiah; for the Lord did bring Mulek into the land north, and Lehi into the land south.

10. Trade Cycles in the Book of Mormon 11 And behold, there was all manner of gold in both these lands, and of silver, and of precious ore of every kind; and there were also curious workmen, who did work all kinds of ore and did refine it; and thus they did become rich.

11. Trade Cycles in the Book of Mormon 13 Behold their women did toil and spin, and did make all manner of cloth, of fine‑twined linen and cloth of every kind, to clothe their nakedness. And thus the sixty and fourth year did pass away in peace.

12. Trade Cycles in the Book of Mormon 15 And it came to pass that in the sixty and sixth year of the reign of the judges, behold, Cezoram was murdered by an unknown hand as he sat upon the judgment‑seat. And it came to pass that in the same year, that his son, who had been appointed by the people in his stead, was also murdered. And thus ended the sixty and sixth year.

13. Trade Cycles in the Book of Mormon 16 And in the commencement of the sixty and seventh year the people began to grow exceedingly wicked again.

14. Trade Cycles in the Book of Mormon 17 For behold, the Lord had blessed them so long with the riches of the world that they had not been stirred up to anger, to wars, nor to bloodshed; therefore they began to set their hearts upon their riches; yea, they began to seek to get gain that they might be lifted up one above another; therefore they began to commit secret murders, and to rob and to plunder, that they might get gain.

15. Emer, Coriantum, and Com Ether 914. And it came to pass that Omer began to be old; nevertheless, in his old age he begat Emer; and he anointed Emer to be king to reign in his stead.15. And after that he had anointed Emer to be king he saw peace in the land for the space of two years, and he died, having seen exceedingly many days, which were full of sorrow. And it came to pass that Emer did reign in his stead, and did fill the steps of his father.

16. Emer, Coriantum, and Com 16 And…the house of Emer did prosper exceedingly under the reign of Emer; and in the space of sixty and two years they had become exceedingly strong, insomuch that they became exceedingly rich—

17. Emer, Coriantum, and Com 17. Having all manner of fruit, and of grain, and of silks, and of fine linen, and of gold, and of silver, and of precious things; 18. And also all manner of cattle, of oxen, and cows, and of sheep, and of swine, and of goats, and also many other kinds of animals which were useful for the food of man.

18. Emer, Coriantum, and Com 21. And Emer did execute judgment in righteousness all his days, and he begat many sons and daughters; and he begat Coriantum, and he anointed Coriantum to reign in his stead.

19. Emer, Coriantum, and Com 23. And it came to pass that Coriantum did walk in the steps of his father, and did build many mighty cities, and did administer that which was good unto his people in all his days. And it came to pass that he had no children even until he was exceedingly old.

20. Emer, Coriantum, and Com 25. And it came to pass that he begat Com, and Com reigned in his stead; and he reigned forty and nine years, and he begat Heth; and he also begat other sons and daughters.

21. Trade Cycles in the Book of MormonEther, Chapter 10 19. And it came to pass that Lib also did that which was good in the sight of the Lord. 20. And they built a great city by the narrow neck of land, by the place where the sea divides the land. 22. And they were exceedingly industrious, and they did buy and sell and traffic one with another, that they might get gain.

22. Trade Cycles in the Book of MormonEther, Chapter 10 23. And they did work in all manner of ore, and they did make gold, and silver, and iron, and brass, and all manner of metals; and they did dig it out of the earth; wherefore, they did cast up mighty heaps of earth to get ore, of gold, and of silver, and of iron, and of copper. And they did work all manner of fine work.

23. Trade Cycles in the Book of MormonEther, Chapter 10 25. And they did make all manner of tools to till the earth, both to plow and to sow, to reap and to hoe, and also to thrash. 27. And they did make all manner of weapons of war. And they did work all manner of work of exceedingly curious workmanship.

24. Trade Cycles in the Book of MormonEther, Chapter 10 28. And never could be a people more blessed than were they, and more prospered by the hand of the Lord. And they were in a land that was choice above all lands, for the Lord had spoken it.29. And it came to pass that Lib did live many years, and begat sons and daughters; and he also begat Hearthom.

25. Trade Cycles in the Book of MormonEther, Chapter 10 31. And he begat Heth, and Heth lived in captivity all his days. And Heth begat Aaron, and Aaron dwelt in captivity all his days; and he begat Amnigaddah, and Amnigaddah also dwelt in captivity all his days; and he begat Coriantum, and Coriantum dwelt in captivity all his days; and he begat Com. (By the time we get to Com, all of the Jaredites had become wicked. PJB)

26. PART II: OBSERVATIONS FROM THE SOVIET ERA

27. The Embargo • In the period directly after the 1917 revolution, the western nations embargoed the hostile Soviets and aided the “White” faction financially to promote a counter-revolution against the “Red” faction while Lenin consolidated power.

28. The Embargo • The Soviets were in abysmal conditions financially, but they neither wanted nor sought outside assistance. • To be dependent on hostile capitalists for trade or aid had no appeal.

29. Rediscovering Ricardo • Through the regimes of Stalin and into the Khruschev era, the only cooperation enjoyed by the Soviets was with the CEMA states of the Soviet Bloc. • As plan failure began to be apparent, it occurred to the Soviets that they could greatly benefit by participating in international trade. They invited western businessmen to invest.

30. Rediscovering Ricardo • It was already basically too late. • Planning problems meant that the quality of most Soviet products was not adequate for western markets. • Planning rigidities meant that after the publication of the annual and five-year plans, all prospective production was committed to the domestic plan and to the socialist brother countries of CMEA.

31. Soviet Isolation from World Markets • Lacking competitive interaction with world markets, the planned economy could not benefit from the healthy stimulus of competition.

32. PART III OBSERVATIONS FROM THE EEC

33. From the ECSC Onward • When France, Germany, Italy, and the Benelux Countries decided to begin an integration experiment, countries around the periphery of central Europe watched with interest.

34. From the ECSC Onward • But not with excessive interest. • They were unwilling to join the EEC when it was formed in 1957. But they were impressed with the rapid recovery and economic growth of the ECSC countries, so they decided they would form a more modest arrangement of their own.

35. Founding the EFTA • In 1960 at the Stockholm Convention, the European Free Trade Area (EFTA) was established. • Participants were Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom.

36. Founding The EFTA • This was a good compromise for England, a country which wished to preserve a “special relationship” with the U.S., yet be a part of its European neighbors in a less intensive institutional arrangement.

37. Spectacular EEC Success • The economic growth of EEC markets surprised and impressed the world. The EFTA countries felt themselves falling behind rapidly. The EEC began to incorporate EFTA members. The UK was for a long time a holdout.

38. Spectacular EEC Success • In 1972-73 Denmark, Ireland, and the UK joined the EC, converting the six into nine. • Trade within the EEC grew twice as fast as world trade as a whole during the 1960s. Drastic economic dislocation did not occur, all parties benefited. As the area of free trade expanded, the benefits of economic growth were enjoyed.

39. Large Markets Are Beneficial • The Europeans have perceived that U.S. growth and prosperity have largely been the result of having a large market with a single currency and trade regulations. • For this we are indebted to the founding fathers and Abraham Lincoln, who were determined to keep the country unified as “one nation under God.”