Free trade works well when the living standard and business costs are of the same magnitude. Canada-U.S. free trade would fit in this example. Both are industrialized nations with not too dissimilar business and living environments. The playing field is level.
More free trade dogma.
While FDR did a lot of damage to the US, do you really think the US is as socialized as Canada? Free trade with Canada subsidizes their socialist economy just like free trade with the rest of the world's socialist economies subsidizes them.
Unlevel free trade, like with China or Mexico causes problems with employment, trade imbalances, etc. For example, how many U.S. companies are shipping goods to Mexico for Mexican consumers?
This is a point most free traders like to ignore and illustrates that the US market is the market to be in for the dreaded American producers, too, not just enlightened foreign socialist countries.
posted on 04/18/2005 7:19:56 AM PDT
("I am in favor of free trade." - Karl Marx)
While FDR did a lot of damage to the US, do you really think the US is as socialized as Canada? Free trade with Canada subsidizes their socialist economy just like free trade with the rest of the world's socialist economies subsidizes them.How does free trade with Canada subsidize their economy? When free trade was first introduced, Canadians hated the idea and felt Mulroney was forcing it down their throats. It casues a loss of jobs and increased U.S. imports into Canada. American companies benefitted more than those in Canada. It actually made the Canadian economy more competitive because it opened up Canada to U.S. producers who didn't have the same level of regulation and taxation Canadian companies experienced. As a result, Canadian entrepeneurs have to be that much more savvy in order to survive the highly regulated (i.e. more restictive) business environment. The experience Canada has with respect to free trade with the U.S. under NAFTA is similar to the U.S. experience with free trade with Mexico. The big difference is that Canadians and Americans have about the same magnitude of living standards, wages and productivity per person. Mexico is very, very different from Canada and the U.S. economically. For example, how many average Mexicans can afford a vacation in the U.S. compared to average Canadians?
posted on 04/18/2005 8:02:54 AM PDT
(Democrats are to morals what and Etch-A-Sketch is to Art.)
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