Markets are the lifeblood of entrepreneurship. But in recent weeks we have heard much political rhetoric about the "evils of the market" and tirades against free trade. This rhetoric is coming from both the left and the right, albeit for different reasons.

The rhetoric is wrong. Markets are fundamentally good. If person A pays $1,000 to buy a widget from person B in free and open markets it must be win-win - that is, both must come out better. Person A only gives up the $1,000 freely if the widget is more valuable to her than the $1,000. Person B only gives up the widget if the $1,000 is more valuable to him than the widget. They both come out ahead, or they would not trade.

Markets and trade result in higher standards of living than result without free trade.

To see this, suppose I did not allow you to trade with anyone else. You have to make your own house - bricks that you make from clay on your own land, pipes that you make from metal you mine on your own land and wood grown on your own land. You have to grow your own food, make your own clothes, build your own car. Obviously, your standard of living would be much lower without trade. Do you even know how to make your own pencil?

Suppose we restricted free trade to within your own city. Does your city have its own steel mill, textile plant or semiconductor facility? If not, then your standard of living will fall dramatically if you do not allow free trade between cities.

Maybe we should restrict free trade between states. Does your state grow its own oranges, avocados or wheat? Do you have your own automobile plant? Restricting trade means that even if there is such a plant in your state, the sales of the car the plant makes must cover its cost. It would probably triple or quadruple the cost of your car if the automobile plant had to spread the fixed costs of the plant over sales within your state only. And wouldn't you rather have the choice of a wide variety of automobiles rather than the single model built in your state?

The same logic extends to trade between nations. We are all better off doing what we do best and trading for the other items we need. Standards of living are substantially higher than they would be without free trade.

There are other benefits to free trade. First, as we become more dependent upon each other as trading partners, we tend to find ways to keep the partnership viable. Thomas Friedman noted that there has never been a war between two countries in which each has a McDonald's fast-food restaurant. National leaders are so anxious to secure the benefits of free trade that they go to great lengths to avoid war or anything else that would hurt them economically.

Second, it keeps governments from becoming corrupt. Corruption is expensive. It lays an extra burden on all economic activity. If free trade is allowed, local companies and workers must compete with companies and workers in less corrupt countries with lower costs. The companies and workers put pressure on the government to reform.

Third, sharing products leads to sharing ideas. The greatest developments of our day have germinated from ideas hatched by many people from the past and present. It is in human nature to take an innovative product and build on it with your own innovative ideas.

Fourth, larger scale reduces costs and improves quality. Free trade means that countries can build plants far larger than the needs of their own country dictate and take advantage of specialization. They can have schools that train workers in the intricate skills needed for their particular industry and create geographic areas for these specialists to share ideas and develop the technology. Silicon Valley in California is a classic example of this phenomenon.

Fifth, trade intensifies competition, which lowers prices and increases quality. The U.S. automobile industry improved quality tremendously during the past several years as intense competition from Japanese cars with higher quality ratings forced them to change.

And there are many other benefits, as well.

When it comes right down to it, that's what entrepreneurship is all about - sharing ideas through the win-win of free trade.