Free trade vs. fair trade: the fundamental debate of contemporary economic policy. To answer this question, we must first examine circumstance. For the sake of simplicity, let's assume this policy is for the US. In the US, the divide between the rich and the impoverished is expanding rapidly. Should this gap continue to grow, the general public and the overall economy will suffer while large corporations (who have little incentive to help the general population) will gain more political and financial power. So what are the ramifications? History provides a surplus of examples with the most well-known of these being the French Revolution: general violence and ensuing chaos.
What policy best deals with this issue of expanding class division? While fair trade may sound like the correct response, true Communism (from an economical standpoint) was a terrible idea, with the early USSR standing as testimony. On the other end of the spectrum, complete free trade typically leads to individuals and corporations taking actions that allow themselves to gain power and influence at the expense of the well-being of others. In truth, some form of regulated free trade would likely expand the middle class, while still promoting economic productivity. This form of regulated free trade is already in practice in the democratic-socialist nations of Europe. Luxembourg, Norway, and Sweden, all nations which have adopted a democratic-socialist policy, are the top three nations in terms of nations with the highest median income. The word "Socialist" in America carries a negative connotation and is typically used by politicians to insult their opponents. Just maybe, Americans need to rethink their views on Socialism.
NOTICE: THIS ANSWER IS AN OPINION. THERE IS NO CORRECT NOR INCORRECT ANSWER TO THE GIVEN QUESTION. MY OPINION MAY DIFFER FROM YOURS.
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