Is ‘fair trade’ a scam to boost profits for major coffee retailers?

MRUniversity is out with a new “Everyday Economics” video that attempts to answer the question: does fair trade help poor workers in poor countries?

The short answer is no, and the video explains why. One of the reasons being is that companies with fair trade policies tend to select richest of the impoverished list of countries (Costa Rica vs. Ethiopia). Also, there hasn’t been any evidence to suggest the workers are earning more money. But the retailers, so far, are cashing in on this labeling.

Check out more from the video!