Posted on 08/02/2006 8:41:11 AM PDT by tang0r
Forget the politicking on the news about tariffs and subsidies. The true advantages of free trade, toward which small political steps as the Doha trade round are vital, are to the long-term financial and social benefit of America and the world. Were free trade effectively implemented, instead of being torpedoed by the demagogic posturing of reactionary Leftists, the progress and development it inspired would improve the lives of millions of people.
(Excerpt) Read more at prometheusinstitute.net ...
Open an economics textbook and read up on comparative advantage. Then perhaps you can begin to understand how this works.
Example from Wikipedia:
Two men land alone in an isolated island. To survive they must undertake a few basic economic activities like water carrying, fishing, cooking and shelter construction and maintenance.
The first man is young, strong, and educated and is faster, better, more productive at everything. He has an absolute advantage in all activities. The second man is old, weak, and uneducated. He has an absolute disadvantage in all economic activities. In some activities the difference between the two is great; in others it is small.
Is it in the interest of either of them to work in isolation?
No, specialization and exchange (trade) can benefit both of them.
How should they divide the work? According to comparative, not absolute advantage: the young man must spend more time on the tasks in which he is much better and the old man must concentrate on the tasks in which he is only a little worse. Such an arrangement will increase total production and/or reduce total labour. It will make both of them richer.
It's funny, really. Just yesterday I was reading the Federal Regulations concerning Mexican trucks. They evaporated in less than 24 hours.
Yes.
Does this mean that the cost of goods is lower, which implies that the cost of labor is lower?
The cost of goods is lower. It involves increased efficiency and productivity.
Why doesn't the author say that the most important 'benefit' of "free trade" to transnational corporations is its deliverance of lower wages for all workers?
Is that why wages in America keep rising?
Do we really? I'd choose 1944 over 2006 anytime for raising a kid. Were you even there?
Hey hedge, I'm still waiting for you to identify one citizen of the US (living) who isn't also a consumer. If you can't, it would mean that all citizens are consumers and benefit from lower prices.
Do you just hate transnational corporations or do you hate all business?
No, but I've heard stories of relatives I never had the opportunity to meet because they died of polio and other diseases back then that are rarely seen today.
Your sentiment is just that. It's a feeling that may sound good now but, if faced with a choice of life in 1944 vs. 2006, the vast majority would opt for the comforts, safety, freedoms and life expectancy we enjoy today.
He's just joking when he talks about the 'freedoms' we have today.
Thanks for the ping. You probably don't know many African Americans, do you? Of course you don't. Do you think women have more opportunities and freedom today than they did in 1944? Does a larger percentage of our population go to college today than in 1944? We have the best military in the world today and it's all volunteer.
Do you have more choices as a consumer today? Is travel easier today than it was in 1944? Would you rather be alive in 1944 or today? Have you found one citizen who is not also a consumer? If so, please ask him/her is they like lower prices or higher prices and get back to us. Thanks in advance.
RE; #63
While they have illegals in the ER. give them vaccinations.
That will solve the problem sooner or later!
Next: Coroner.
Are you agreeing with me then that African Americans and women have more freedom and opportunities today than they did in 1944? Do you think these people are excited about the fact that their children and grandchildren have better lives and more freedom and opportunity than they did?
Since you agree with me please explain your comment in post #87. Tell us where I was joking.
I'm also waiting for you to explain how American citizens, who are also consumers, would be against the lower prices that free(r) trade delivers.
No, haven't seen it. Its interesting though, isn't it?
Bookmarked for later.
In other words, be careful of he who holds the pencil.
As I understand it, Paulson, Sec of Trea., will be devaluing the dollar slowly. It will make our trade deficit look as if it has gone down. We will see all kinds of charts and hooplas while prices rise.
So the Rio Grande doesn't flow south?
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