Many people have looked though history and wondered why over thousands of years significant technical progress has not happened until America came into being. 

American exceptionalism is about many reforms regarding government allowing liberty, that allowed this country to flourish and advance like no others in thousands of years or across the globe.
One of the many reasons was a great free trade zone.  The US constitution: The United States Congress shall have power "To regulate Commerce … among the several States… gave the federal government the power to stop trade barriers between the states creating one very large free trade zone.  While this causes disruption when one state's production is undermined by other states lower price, the great benefits overwhelm the disruptions. 
This was one of great impetus that advanced this country further and faster than any time or place in history.  There is great pressure on politicians from certain industries to create trade barriers when they are losing to competition.  These trade barriers are sold as “saving Jobs”, however this is very short sighted. 
The competition has jobs also and the people in your state could benefit from lower consumer prices. There are many businesses in your state that need the lowest cost raw material and non-consumer goods to make them competitive and keep their jobs.  Thinking past stage one or the counterfactual is hard for most people because there are too many variable to consider.
Trade barriers harm overall economic activity and make the vast percentage of the people less wealthy and have less opportunities.  Over the decades, greater trade barriers have been constructed because of political pressure, and campaign money have elected many politicians who either do not realize the harm they are doing or just want the power to control. 
Education is far from free trade. State rates verses out of state tuition is a barrier that needs to stop.  State funding of education moves the needle away from free enterprise towards socialism.  

Insurance of all kinds have long been state controlled and with major barriers that result in hirer prices and worse service.  It is hard to impossible to see the counterfactuals of no barriers, however right now competition is greatly curtailed. 

The farm bill in congress is full of very harmful trade barriers, from subsidies, bans, and paying people not to be productive.  The farm bill is one of the best examples of bad economics doing great harm.  People see that we have an abundance of food and claim the farm bill must be doing good.  This is short sighted, the counterfactual cannot be seen and is unknowable.
However, freedom and free markets always yields better results.  Many claim astronomical commodity prices if the law did not provide subsidies, they clearly cannot think past stage one.       

There are many more barriers out there and this article can cover them all.   

Whether across state lines or worldwide, everyone would be better off with lower and ultimately no trade barriers. I am in the camp that says that states and America will do a lot better if they stop all trade barriers regardless of whether other states or nations drop their barriers.  Our example of doing better after dropping barriers will influence other states and nations to drop theirs.    


03/17/2015 2:32am

This is a really good read for me, Must admit that you are one of the best bloggers I ever saw. Thanks for posting this informative article.

08/19/2015 7:09am

This is a very useful post, thank you! I agree that innovations are the most important thing for most businesses, because with today’s fast changing world we need to stay on top of the changes, if we want to survive.


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    Competitive Regulatory Agencies Blog

    Bill Haley

    Bill Haley started Haley2024 in the spring of 2013 in an effort to his part of restoring freedom to America.


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