Free Trade vs. Forced Charity

Tyler Cowen writes:

Total tsunami foreign aid from the U.S.: $908 million

U.S. tariff revenue from Sri Lanka, Thailand, India, and Indonesia: $1.87 billion

That is from Foreign Policy, September/October issue.

Which is true compassion, allowing people to trade freely or "gifts" of foreign aid? Let's examine two states of the world, one in which the US allows Southeast Asian countries to trade without tariffs but does not give foreign aid and the current state of the world.

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No-tariffs, no aid:

Winners: US taxpayers, US consumers, foreign business owners and wage earners.

Losers: US government, foreign governments

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Tariffs with Foreign Aid:

Winners: US government and friends, foreign governments and friends.

Losers: US taxpayers, US consumers, foreign business owners and wage earners.

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If the policy is made by the US government you know the little guy has to get screwed.