Economic arguments for repealing Britain's Corn Laws

¶ … Corn Laws should be Repealed

The Corn Laws represent a distortion on the market price of corn. The price of corn is kept artificially high, which distorts the natural flow of capital to its most efficient use. Repealing the Corn Laws will induce a more efficient economy for the betterment of the British people.

The Corn Laws are a series of laws that grant trade protection to agricultural producers. While higher corn prices benefit landowners, they do not benefit consumers. In practice, the Corn Laws have also harmed farmers, who have not seen the benefit of the higher prices. The Corn Laws also harm the economy as a whole, by reducing trade and distorting the flow of capital in the economy.

The Corn Laws establish a sliding scale tariff on the importation of corn and this keeps the market price of corn artificially high. The producers of corn benefit, but the consumers of corn suffer. In this way, the Corn Laws represent a transfer of wealth from the poor to the landowners.

The Corn Laws also distort the flow of capital. One of Britain's greatest strengths is its manufacturing sector, but that sector is harmed by the excessive flow of capital, land and labour into agriculture that results from protectionist laws governing that sector. Corn laws reduce Britain's manufacturing strength.

Some have argued that the Corn Laws are important for maintaining food security. The Corn Laws do not equate to national security. Food security is a concern, yes, but we can increase the amount of total food in the economy through trade. With more capital invested in industry, British exports can be sold to buy more food. Britain has already increased its corn importations, even with the tariffs (see Exhibit A).

Britain should take a leadership role in the promotion of free trade. Agriculture is not an infant industry in need of protection. Indeed, Britain's agriculture sector is among the world's most efficient, and technologically advanced. If we espouse a system of free trade, we should lead by example. As the most powerful nation on Earth, we are least likely to be harmed by taking this position -- once we lower our trade barriers, other nations will follow.