Free people have an abundant amount of faith because their every action expresses two fundamental economic principles that ensure that free people share best.  These principles are ‘trade creates wealth’ and the economic law of comparative advantage.

Trade creates wealth was first expressed by Adam Smith in his 1776 treatise “On The Wealth of Nations.”  This concept is obviously true: voluntary trade between two parties MUST create value for both parties because, if it didn’t, they simply wouldn’t make a transaction.  So, simply by engaging in trade, people generate value in the world: they create a net gain.  This net gain is described by the economic law of comparative advantage.

Comparative advantage “explains how trade can create value for both parties even when one can produce all goods with fewer resources than the other.”  This ensures that everyone, from the most unskilled laborer to the most sophisticated engineer, can create value in the marketplace by voluntarily exchanging goods and services.

People often confine the principles of ‘trade creates wealth’ and ‘comparable advantage’ to economics, but they have profound spiritual implication.  They deliver in sober economic terms the message that everyone is naturally valuable and the most value is created through collaboration and voluntary trade.

It’s important to realize that these economic laws are true under EVERY circumstance.  Trade ALWAYS creates wealth. People can ALWAYS engage in trade.  Everyone can ALWAYS create wealth.

Since value is, by definition, desirable and these economic concepts are always true, than any activity that prevents trade is never a rational decision.  Peace is rational.  War is always irrational.  Trade creates peace.  Peace creates trade.