From destructive to creative trade through economic democracy

Abstract

During the great depression of the 1930s, facing drastic unemployment and declining incomes, many of the European countries affected engaged in protecting their national markets through import protection. This beggar-thy-neighbor policy gave the economists’ profession an impetus to show what was happening and to conclude that restriction of free trade – the beggar-thy-neighbor policy based on repetitive retaliation – is detrimental to the economy, and thence the conclusion and recommendation of free trade.

Citation

Vanek, J. (2010), "From destructive to creative trade through economic democracy", Eriksson, T. (Ed.) Advances in the Economic Analysis of Participatory & Labor-Managed Firms (Advances in the Economic Analysis of Participatory & Labor-Managed Firms, Vol. 11), Emerald Group Publishing Limited, Leeds, pp. 247-253. https://doi.org/10.1108/S0885-3339(2010)0000011014