Comments on: Support Free Trade http://www.secularconservative.net/fiscal-policy/support-free-trade/ Mon, 10 May 2010 01:39:11 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: JD http://www.secularconservative.net/fiscal-policy/support-free-trade/#comment-902 JD Sun, 21 Dec 2008 16:57:18 +0000 http://www.secularconservative.net/?p=232#comment-902 The hole in free trade is this- those who lose those jobs to foreign competition are not going to be buying goods- they are unemployed. It is not going to matter how cheap those foreign goods are, either- no job = nothing to spend. Even if kept afloat by their government, their consumption will be considerably less. Not to mention that in many cases, the economic dislocations caused by free trade are essentially permanent- if we lived for hundreds of years, it might equal out. Unfortunately, our working life is considerably less. As regards peace, if your enemy has the capability to build weapons, and you don't, you are doomed. Period. Let us not fool ourselves- international politics is all about power, not money. The latter is merely an adjunct to the former. There are plenty of people willing to sell raw materials to the Chinese, for example. They can afford to buy it at a higher rate- after all, their labor costs cannot go up. The hole in free trade is this- those who lose those jobs to foreign competition are not going to be buying goods- they are unemployed. It is not going to matter how cheap those foreign goods are, either- no job = nothing to spend. Even if kept afloat by their government, their consumption will be considerably less. Not to mention that in many cases, the economic dislocations caused by free trade are essentially permanent- if we lived for hundreds of years, it might equal out. Unfortunately, our working life is considerably less.

As regards peace, if your enemy has the capability to build weapons, and you don’t, you are doomed. Period. Let us not fool ourselves- international politics is all about power, not money. The latter is merely an adjunct to the former. There are plenty of people willing to sell raw materials to the Chinese, for example. They can afford to buy it at a higher rate- after all, their labor costs cannot go up.

]]> By: Cephus http://www.secularconservative.net/fiscal-policy/support-free-trade/#comment-308 Cephus Wed, 17 Dec 2008 17:11:46 +0000 http://www.secularconservative.net/?p=232#comment-308 Well, yes and no. While on paper, free trade certainly sounds like a good idea, in practice, it lets many American manufacturing jobs go overseas (or often, over the border into Mexico), flaunt American labor and environmental laws, and produce a cheap product that they simply roll back across the border for additional profits. The whole point of NAFTA was supposed to be raising the economies of neighboring countries to our level, instead we're simply exploiting their people and their laxer laws to our advantage. If we're going to have free trade, we need to keep things on an even playing ground. American companies need to follow American laws no matter what country their operations are based in. That means they follow the same laws they'd have to follow in the United States. All the environmental laws need to be followed, all the labor laws need to be followed, they can't pay slave wages simply because the people are willing to work for a penny a day, minimum wage laws still apply, they can't employ minors for hazardous work, just because their parents are willing to allow it, etc. The simple fact is, we have lost a tremendous number of jobs because it is cheaper overseas. The only jobs that are not going anywhere are the service jobs and those traditionally don't pay all that well. You can hardly get on the phone and call a company without being routed to India anymore, that's not "a few jobs", that's an entire industry that largely, isn't American anymore. I'm all in favor of an open market, but it has to be free. It doesn't help if American companies run across the borders to make their products if nobody at home has jobs to buy them anymore. Well, yes and no. While on paper, free trade certainly sounds like a good idea, in practice, it lets many American manufacturing jobs go overseas (or often, over the border into Mexico), flaunt American labor and environmental laws, and produce a cheap product that they simply roll back across the border for additional profits. The whole point of NAFTA was supposed to be raising the economies of neighboring countries to our level, instead we’re simply exploiting their people and their laxer laws to our advantage.

If we’re going to have free trade, we need to keep things on an even playing ground. American companies need to follow American laws no matter what country their operations are based in. That means they follow the same laws they’d have to follow in the United States. All the environmental laws need to be followed, all the labor laws need to be followed, they can’t pay slave wages simply because the people are willing to work for a penny a day, minimum wage laws still apply, they can’t employ minors for hazardous work, just because their parents are willing to allow it, etc.

The simple fact is, we have lost a tremendous number of jobs because it is cheaper overseas. The only jobs that are not going anywhere are the service jobs and those traditionally don’t pay all that well. You can hardly get on the phone and call a company without being routed to India anymore, that’s not “a few jobs”, that’s an entire industry that largely, isn’t American anymore.

I’m all in favor of an open market, but it has to be free. It doesn’t help if American companies run across the borders to make their products if nobody at home has jobs to buy them anymore.

]]>