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Far-left activists are relentlessly opposing the Trump administration for imposing and revising economic and trade tariffs with other countries to establish a fair economic practices and balanced reciprocity.
Perhaps these radical leftists must be reminded or educated about basic principles of social and economic exchanges of human societies from sociological and anthropological perspectives.
Humans are the only living species involved in social integration through exchange of goods, services and values. Exchange plays a vital part in our daily life, permeating through the social system and holding society together. Evidently, in every society people are guided by the general rules of reciprocal exchanges: (1) people should help those who have helped them, and (2) people should not injure those who have helped them.
Undoubtedly, in all societies people act within the framework of their social structure and cultural context, maximizing their gains and minimizing their risks, modifying the manner of their performances, and adapting to a given biophysical and socio-economic environment by various means, including exchanges guided by the norms of reciprocity.
These norms of reciprocity regulate human behavior in direct and indirect interactions; they establish or reinforce social relationships between societies. The norms of reciprocity influence an actor’s behavior rather than determining it. A gift received or services performed create an obligation to reciprocate, unless the recipient does not feel obligated to reciprocate. When reciprocity between two parties breaks down, it is often replaced by animosity or conflict.
In short, the exchanges of goods and services between parts of a system produces social integration only if both parties to the transaction feel that the values exchanged are roughly equivalent. In other words, rationality in the sense of action based upon prior calculation of expected returns forms one part of a larger subject matter of social and economic exchange. Exchange (e.g., economic trade—imports and exports of goods and services) is any interaction process that emerges as individuals, corporations or countries seek rewards in social relations; a mutually beneficial exchange requires a reciprocal movement of goods and services.
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It is imperative not to confuse economic reciprocal exchanges with a gift (e.g., foreign aid). Gifts are a unidirectional transaction of donated surplus without expectation of equal monetary or value return. Gift exchange is an obligatory act to create social solidarity and collective conscience.
There are several basic forms of reciprocity that our political leaders must understand and apply in their decision making, especially when it is related to international trade, common sense tariffs and national security:
Generalized reciprocity is a predominantly one-way exchange. No return of a gift or value is required to balance any gift; the donor gains prestige and respect in return for his/her generosity. Generalized reciprocity is putatively altruistic, transactions on the line of assistance given, and if possible and necessary, assistance returned – e.g., parent and child relationships. When a parent serves a bowl of soup to a child, he/she does not expect a monetary return of the same value; perhaps a smile and thank you would suffice.
Balanced reciprocity is a form of direct exchange in which goods and services flow in two ways. One party gives a gift to another party with expectation of return of a gift of equivalent value within a particular period. These relationships decrease and eventually disappear among peoples that are geographically remote from each other, e.g., Northwest Inupiaq and Tlingit Indians in Southeast Alaska.
Negative reciprocity is the attempt to get something for nothing with impunity. It is an impersonal exchange in which participants confront each other as opposed interests, each looking to maximize utility at the other’s expense. The objective of negative reciprocity is self-interest and profit-making. Negative reciprocity is the kind of economic interaction in which kin and friends are not engaged in an exchange network, e.g., consumer and retailer relationships.
Redistribution refers to a mode of exchange in which goods and services are relocated by authorities, e.g., taxation, tribute, mandatory requirements, and then redistributed throughout the population in the forms of services, social benefits, welfare, police and military protection, etc. Redistribution between societies is a peaceful exchange relationship, like negative reciprocity.
Market exchange is the engagement of societies in trade based on market principles in which exchanges of goods and services are conducted through the medium of a cash economy. In short, it is a form of exchange based on the principle of “supply and demand” of a state system.
Indeed, each country bears in mind their own socio-economic interests and national protection. Our country exports goods and services that we have in surplus, and we import goods and services that are limited or in demand in our country. Let’s keep this balanced reciprocity always in check – to be constantly under control, monitored, or restrained, so that something doesn’t get out of hand or become excessive.
The views expressed here are those of the author.
2 Comments
Dolitsky lays out with marvelous clarity the principles of trade and exchange between nations. Whether Trump’s Tariffs are good or bad ideas, the FIRST question that must be asked is, “Are they Constitutional”? Only Congress has this power. The Congressional Research Service typically makes an egregious error when it states, “The U.S. Constitution empowers Congress to set import tariffs, a power that Congress has partially delegated to the President.” This is nonsense. Congress has no power to surrender its powers, majority votes be damned. The reason we are in such a mess is because all of our elected officials since DAY ONE in the 1790s have cheated on their oaths to a document that is only as effective as “We the people” hold them to it. But because the cheating has always pleased a faction (usually the majority) of the people, they got away with it. This dynamic continues. The Constitution looks like a shiny new Cadillac that has been rolled, bashed, crashed, smashed and dashed. Whenever one faction or the other screams “Unconstitutional!” you can bet that they are ignoring what the overall looks like, and concentrate on one item that still survives. Trump is trying to return sanity to foreign and domestic affairs, and has only four years to do it. What he does must have a constitutional lens of scrutiny in hopes that “The People” can make the corrections in the long run. If we don’t do at least THAT, the mess will continue. Ron Paul’s legacy has likely influenced Trump. Let’s keep reminding ourselves … and him … of that.
Here’s your first error . “Fair economic practices and balanced reciprocity.” You didn’t define that nor give us any evidence that it’s true.