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The hidden cost of free trade
THE WASHINGTON TIMES ^ | September 18, 2005 | Jeffrey Sparshott

Posted on 09/18/2005 9:19:51 AM PDT by Willie Green

Angel Mills worked at GST AutoLeather in Williamsport, Md., most of her adult life. She cut, inspected, packed and shipped leather upholstery until she was laid off in June 2003 as the company scaled back local operations and shifted production to Mexico.

"It's sad. It's scary. I've been a factory worker all my life, and I didn't know what I wanted to do," said Ms. Mills, a 38-year-old Williamsport resident with a teenage son.

But by March 2004 she was taking a half-year course to become a state-licensed massage therapist. A federal program that helps workers who lose jobs owing to foreign competition paid for her training and offered extended unemployment benefits.

In July, she started working at Venetian Salon and Spa in Hagerstown, Md.

~~~SNIP~~~

Mr. Thomas said that for all trade adjustment program workers passing through the consortium, the average wage was $14.36 an hour before the layoffs, while after retraining it was $11.87 an hour, a decline that is common for factory workers who have to restart their lives.

U.S. Labor Department figures indicate that among the retrained, those that find new jobs end up making only 70 percent to 80 percent of their old wages on average.

(Excerpt) Read more at washtimes.com ...


TOPICS: Business/Economy; Culture/Society; Foreign Affairs; Government
KEYWORDS: cafta; corporatism; freetrade; freetraitors; globalism; nafta; offshoring; protectmeplease; racetothebottom; thebusheconomy; wagesandbenefits
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To: Ninian Dryhope
"...no one has answered you incisive question, which goes right to the heart of the matter. They would rather quibble..."

I keep trying to get back to values and facts too, but I think the harsh reality is that the weekend isn't over yet and food fights are a heck of a lot more fun then that old boring "incisive question" stuff..

141 posted on 09/18/2005 4:27:26 PM PDT by expat_panama
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To: JasonC

"The value of the work is set by its usefulness to consumers now, not by what a given worker did for consumers 10 years previously."

One would think that that would be intuitively obvious, but it seems not to be on this thread.


142 posted on 09/18/2005 4:27:43 PM PDT by Ninian Dryhope
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To: Dittohead68

"I'm sure the "clock puncher" comment is supposed to be a put-down, right?"
Yor write, sorry. No more clock puncher. But I'm still gona mispell words. I can run spell check and still screw up.


143 posted on 09/18/2005 4:29:39 PM PDT by PositiveCogins
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To: A. Pole
I did not say that socialism will help workers or not

Why avoid the obvious question?

What I said us that the dislocation and suffering caused by policy favoring the wealthiest might result in a socialist reaction.

Oops, too late. You just answered.

If the rich in Russia were more willing to support the land reform ie redistribution of property directed at creating the independent and prosperous farmers, very likely the Bolsheviks would not win

Are you saying that we need to adopt more aggressive policies forcing the redistribution of wealth to successfully avoid the inevitable proletariat revolution?

Is it your belief that freer trade causes wealth to accumulate in fewer hands? Or, do you think that additional government regulation, advocated by elitists to protect their interests, is more responsible for wealth creation being limited to the few who happen to be well connected?

144 posted on 09/18/2005 4:36:29 PM PDT by Mase
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To: PositiveCogins

"Yor write, sorry. No more clock puncher. But I'm still gona mispell words. I can run spell check and still screw up."


Tweek.


145 posted on 09/18/2005 4:40:05 PM PDT by Dittohead68
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To: v. crow
If Americans instead chose or were forced (by tariffs) to buy products made from leather from GST AutoLeather's plant in Maryland, they would pay a higher price for a less efficient plant, and on the average, America would be poorer. Instead of being able to afford both a leather couch and a massage, they would only be able to afford the leather couch.

You've got this pretty much backwards...The couch price didn't change...The manufacturer took the wages he paid to Americans and put it in his own pocket...He didn't drop the price of the couch...He didn't move to Mexico to be nice to Americans...

And now the lady with considerably reduced wages can't afford the couch...She can't afford a massage either...But she NEEDS the couch...So she buys cheaper groceries...Doesn't drive as much and gives up on going to the movies...

And now, she won't be buying a new car (which puts more Americans out of work)...

146 posted on 09/18/2005 4:43:52 PM PDT by Iscool
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To: Iscool
You've got this pretty much backwards...The couch price didn't change...The manufacturer took the wages he paid to Americans and put it in his own pocket...

Or possibly stayed in business and saved jobs. Not everyone is relocated in such a move.

147 posted on 09/18/2005 4:53:13 PM PDT by bkepley
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To: Mase
Are you saying that we need to adopt more aggressive policies forcing the redistribution of wealth to successfully avoid the inevitable proletariat revolution?

The redistribution of wealth was the key method of keeping Western democracies safe and stable.

148 posted on 09/18/2005 5:00:09 PM PDT by A. Pole (Michel Faber: "Build a better mousetrap and the mousetrap corporations will beat the sh** out of you)
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To: Iscool
And now, she won't be buying a new car (which puts more Americans out of work)...

This is the picture the tariff people paint --lower the tariff and people loose their jobs.   The tariff people even have actual case histories to make it sound even more realistic.  What they don't have is the actual headcounts of the job-losers compared to actual head counts of the job-gainers, along with the stacks of payrolls showing higher wages for all.   It's a picture that simply doesn't match with reality.

149 posted on 09/18/2005 5:09:00 PM PDT by expat_panama
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To: WOSG
"Given that it is false, the amazing thing are the adherents to it not the skeptics."

LOL!! So very true! It is amazing that anyone could believe that free trade is government subsidized labor.
150 posted on 09/18/2005 5:12:41 PM PDT by Ninian Dryhope
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To: A. Pole; Ninian Dryhope
I read Milton Freedman - I find him a moron and an intellectual fraud.

You are certainly entitled to your opinion, but Ninian was referring to conservatives not having read Friedman - not those who think government holds all the answers and that only government can create equity within society.

I'm sure there are many other socialists, and communists as well, who think Friedman is moronic.

151 posted on 09/18/2005 5:15:05 PM PDT by Mase
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To: elbucko

"This all sounds like something for nothing to me."

No, it is the history of the world. Trade has always increased the wealth of societies. Have you ever read anything by Milton Friedman? I suspect that you have not.

Read the following:

http://www.hooverdigest.org/974/friedman.html

and get back to me.


152 posted on 09/18/2005 5:20:11 PM PDT by Ninian Dryhope
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To: superiorslots
Have you ever had to meet payroll?

I met payroll for twenty years, before I retired.

A large portion of the world is entering the industrial age and we cannot stop them.

If we can't compete with them, we will get left behind. The best we can hope for is a marginally level playing field.

Over time these things tend to balance out, remember the Japanese in the 1980's ? For awhile they were buying up everything in sight, now they are being undercut by the competition.

153 posted on 09/18/2005 5:26:49 PM PDT by oldbrowser (A living, breathing constitution is a usurpation of the people's sovereignty)
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To: expat_panama
It's weird how the Washington Times has been coming up with op-ed's like these

I was surprised as well to see this tripe coming from the Times. Maybe they're just trying to give the appearance of being balanced by offering more from the other side, such as it is. The WSJ has Al Hunt and I've never understood why they let him spew his nonsense - other than to appear fair and avoid criticism.

You're right though, Kudlow should know better.

154 posted on 09/18/2005 5:49:26 PM PDT by Mase
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To: oldbrowser
The best we can hope for is a marginally level playing field.

But the rhetoric around here is not so restrained. It's the rhetoric of the old left.

155 posted on 09/18/2005 5:49:58 PM PDT by bkepley
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To: Mase
You're right though, Kudlow should know better.

Kudlow does know better and he does not "run" the Times.

156 posted on 09/18/2005 5:51:47 PM PDT by bkepley
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To: WOSG
The government has the power to inject new labor inputs into the production cycle. Those inputs sustain the consumer market (and tax base) in this country. Robbing Peter to pay Paul doesn't seem like a balanced plan to me. Maybe we need more incentives and penalties to insure corporations are giving back what they take from the local economy in a balanced way (not just dividends on equity).

Something needs to be done to make sure average American's can compete in a global market. If they are willing to throw the populous into the global market they should at least make sure they can survive in that market. The ol' survival of the fittest sounds good to some but in practice most people cannot keep up and will end up on the government dole.
157 posted on 09/18/2005 6:05:34 PM PDT by RockyMtnMan
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To: WOSG

"You're lucky just to keep 'em off the wagon."

I think you meant on the wagon and off the booze.


158 posted on 09/18/2005 6:16:30 PM PDT by Ninian Dryhope
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To: Iscool
You've got this pretty much backwards...The couch price didn't change...The manufacturer took the wages he paid to Americans and put it in his own pocket...He didn't drop the price of the couch...

In the short term, the manufacturer will either pocket the difference and spend it on a new Lexus or diamond necklace for his wife (employing more people); or he'll lower his price to undercut his competitors, increase his market share and make more profits anyway. In the end, the money doesn't disappear into a bourgeoise black hole. The manufacturer is human, therefore his wants are unlimited, therefore he will employ people in the process of meeting his wants.

By the way, if he doesn't drop the price of his couches, he's not very competitive; one of his competitors will wise up, make his own business more efficient in some way, and undercut his prices to increase his own market share and profits. If no one does this, or if they collude between themselves to keep prices higher than what they might be, than I, or someone just like me, will enter the market and take their market share by virtue of a better and more efficient business. That's what keeps the free market honest and efficient. In fact, the only thing that makes the system break down is when the interested parties collude with the government to protect them via things like tariffs on their products or new regulations to keep newcomers away (see the steel industry and the oil refineries).

He didn't move to Mexico to be nice to Americans...

No, but it's funny how the system works to make it seem like everybody loves us, isn't it?

159 posted on 09/18/2005 6:23:09 PM PDT by v. crow
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To: mississippi red-neck
At exactly what point did the American standard of living begin to decline, according to your observations? Can you give me a date when the tipping point was reached?

I suppose I can believe your analysis or I could believe Nobel Prize Winning Economist, Milton Friedman on the value of tariffs. Tough choice for me.

Could you please read Friedman's THE CASE FOR FREE TRADE and let me know just where he got it wrong?

http://www.hooverdigest.org/974/friedman.html

Thanks so much.
160 posted on 09/18/2005 6:26:07 PM PDT by Ninian Dryhope
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