Capitalism Versus Fair Trade

One of the many topics for discussion among Anarchists, at least those I tend to speak with regularly, is that of Anarchism and economics. We live in a capitalistic economic system, sometimes referred to as "free trade". Although free trade is typically limited to international definitions, I hear it often in regards to national economics as well. Meaning, we are free to trade our goods and services, for a price, with few legal restrictions. The capitalist market is supposedly the last word in freedom of trade, businesses are generally free to charge whatever they deem appropriate for goods, and they allow the consumers to dictate if that price is too high, or just right. The government limits companies on pay rates, so that we, the employees aren't treated as slaves, and are able to earn a fair wage and work in safe conditions.

But is this the truth?

Capitalism may make trading free from too many restrictions, but it doesn't in fact, guarantee that said trades are fair. What I mean by this is that what we trade - our services for currency, our currency for goods - isn't equal in value, thus not a "fair trade".

Think about it like this. Let's say you work for a grocery store for $8 per hour. You collect your check at the end of the week, put it in the bank, then head right back to the grocery store to buy the food you need to survive. You spend around $80 for the basic foods you need to last you a week.

You have just purchased ten hours of your time, and hard work. The company gives you money, then takes it back at a higher rate then which they are willing to pay you, for the very products you've helped them to sell.

To make matters worse, "market conditions" can dictate inflationary costs - thus costing you more time, and more hard work, for the very same products. While your earnings stay relatively the same. There is also, of course, the illusion of a competitive market. While you may think you have the freedom to choose one store over the other, with regards to costs they are all about the same. As one store goes up in prices, so too, do all of the others. It never seems to go in the other direction, save for a large amount of promotional sales, a marketing trick that barely brings the overpriced items down to a reasonable level. Thus rendering your contribution to competitive pricing, null and void.

Is there a better option?

Yes, there is. it's called fair trade, and it is attainable. Desirable, even. Fair trade is also done freely. Some call it bartering, others, "freecycling". Whatever you'd like to call it, I call it preferable.

With fair trading you still barter your time, or your products, but instead of receiving a relatively worthless piece of paper, you get something you actually need. Our currency is rather meaningless. What is it? It's paper, with numbers on it. An IOU, essentially that has literally no backing to it. Our currency hasn't been backed by gold in a number of years, and even if it was, so what? Exactly how much is a bar of gold worth to a hungry child? Nothing. The feudalistic attempts to make rare items such as gold into something of value is a topic for another post, however. Let's suffice it to say for the moment, that you can't eat money. You can't build a house with it, you can't protect yourself with it, you can't do much with it other than trade it in for the goods you actually need, at an ever increasing rate due to it's fluctuating value. Food's intrinsic value to a human however, never fluctuates.

With that said, let's get back to fair trade. Let's say my car needs new tires. Well, what do I have? I have skills in thus and such industry. I have time, I have something of value to trade. Great! Who do I know? So and so has some tires he no longer needs, let's see if he needs what I have to offer. He does? Great! Let's trade.

Now, the capitalist market would have you believe that those tires are worth a specific price at an inflated cost (no pun intended!). But to someone who no longer needs them, they have little value, other than for trading. So, you come to an agreed upon trade, one that both folks are happy with, and viola! a fair, and free trade has just occurred sans any currency whatsoever.

This kind of trade can occur on many, many levels. Goods for goods, services for goods, goods for services. Many items for trading can be found locally, and freely, too. I went to the beach today and collected bucket fulls of shells and seaweed. Both have value to certain groups of people, some for jewelry making, others for sustenance, etc...either way, for about an hour of my time, I can now go to someone else and trade the goods for something I need.

But, but but! What about production costs?! What about imports! Exports! Taxes!! yes, yes I hear the objections already. On a large national and global scale fair trade hasn't found it's niche. But it will. Eventually, as trade deficits get too high, and taxes and tariffs become too burdensome, and all around costs skyrocket, people will become creative in getting the goods and services they need, sans currency.

It's time to ditch the dollar, my friends, and start working on a way to cooperatively get what you need without being driven into insanity trying to find a way to pay for it.

The thought of having a company pay me a marginal wage to make large profits for them so I can turn around and give them too much of my money by purchasing their over priced products is absurd.

More to come on this subject, as the inner workings of Anarchist economics is simple, yet complicated!