Posted on 03/17/2016 1:15:58 AM PDT by Cincinatus' Wife
Donald Trump and his fellow liberals Hillary Clinton and Bernie Sanders are lambasting free trade as the scourge of the American working man. How odd it is that an economic activity so beneficial to almost every American, indeed to the vast majority of the human race, suffers such attacks with only half-hearted defenses raised by politicians who should know better and economists who do know better.
I stipulate: in trade, as in any economic endeavor, there are losers in the short run. Capitalism is, after all, fundamentally a system of creative destruction. But if there is any area of agreement among economists of all political stripes — a group among whom finding agreement is exceptionally difficult given their unique decision-making anatomy — it is that free trade provides large net benefits to the societies that engage in it, even if other nations do not lower trade barriers to the same degree.
Furthermore, the benefits of trade accrue in large measure to the lower economic echelons of society in an extension of Schumpeter’s profound observation that “the capitalist achievement does not typically consist in providing more silk stockings for queens but in bringing them within the reach of factory girls in return for steadily decreasing amounts of effort.”
Allow me to offer a few quotes (emphasis added) from one prominent economist, at the time a professor at an elite university, who was lamenting the poor understanding of international trade in the United States:
(Excerpt) Read more at spectator.org ...
1. In any financial transaction, buyers will seek the lowest price possible. At the same time, sellers will look for the highest price possible.
2. An employment arrangement involves a "buyer" (the employer) and a "seller" (a worker).
3. One of the simple realities of an economy is that a worker will usually demand far more for his/her services than he/she would ever pay another worker for the same services.
Point #3 underlies almost every policy decision that is made by a government in a modern, advanced country like ours where labor costs are extremely high. "Free trade" gives us the ability to do things in a foreign trade situation that we'd never be allowed to do under the law right here in the U.S. -- namely, paying workers less than our statutory minimum wages, buying products that are made in factories that violate every environmental standard under our laws and fail to meet minimal worker safety standards, etc.
That's what Trump has been part of and what he's used to game the system all these years.
It's akin to Willie Sutton telling us he'll "Make Bank Vaults Safe Again."
He's great at marketing and selling his brand.
But what has Trump done to earn the honor of leading Americans, done to gain the trust of the nation or the world, or given him the right to lead from the Bully Pulpit?
He's the poster-boy - the show horse - of buying access; he is not the draft horse who will resort our economy.
Youngstown, Detroit, and Cleveland will all lead the cheer.
This guy is insane. He approves of unfair trade.
We have had more economic freedom/less barriers to imports than any large nation on Earth for over 200 years. Wealthy tiny countries like Switzerland and Singapore exempted.
Trump,with his implied trade war against all countries that have a trade surplus with the US, will make us more like Cuba,Venezuela, Bolivia and Brazil.
Closed or less open economies with high tariffs and trade barriers “to protect jobs.”
Much like East Germany had the highest standard of living amongst the Communist Bloc the US,if it joins, will have the highest standard of living amongst the Stupid Bloc of countries because of the inherent skills of American workers.
He’s the poster-boy - the show horse - of buying access; he is not the draft horse who will resort our economy.
why again do we need a draft horse to resort our economy ?
Cruz will not change this. He is a globalist starting before he was with Bush.
Imo a vote for Cruz is a vote for a North American Union, increased immigration, albeit legal, then more until we lose our country’s sovreignty.
Perhaps you have not had and do not understand the phenomenon of metanoia. One can be involved in an enterprise which is flawed and yet become its strongest reformer as the flaws are revealed to you.
We know Cruz will sell us out. There is some hope with Trump.
You put too much faith in data. Sometimes a cigar is you know.
Why do you think a show horse that’s been drinking from the Crony Capitalist trough is your winning ticket out from under?
A “work horse” Trump isn’t.
First, how "free" is free trade? Second exactly why do Trump, Clinton, and Sanders lambast free trade? All for the same reasons? Are there any differences?
A responsible journalist would actually provide the context of their article about free trade, rather than assuming that the reader will "buy" such an outlandish opening statement.
Or, is this just another hit piece on the Donald?
I guess you’ll have to read the piece to understand the piece.
Tell me how a 70-year old pitchman and trust fund baby (who’s engaged in all that he’s raging against) - who’s re-invented himself into the “Make America Great Again” Pied Piper - has successfully morphed into your savior?
Your comment defies all logic.
There ain't nothing "FREE" about it, and we are all paying the price.
Trump’s or Cruz’s?
I say Cruz’s.
Cruz was for TPP before he was against it. If it weren't for Trump, there would be no talk about a wall, jobs in mexico because of nafta nor jobs exported because of currency manipulation and china tariffs.
Cruz is a life long politician that has never had a job producing anything.
We are all shocked that you say Cruz.
BTW, how did Super Tuesday 3 go for you?
I'm not sure about 'earning the honor of leading Americans' but he's gained the trust and votes of most primary voters.
Before you start telling me that 60% have voted against Trump, remember, Trump has 2,000,000 more votes than Cruz.
73% of primary votes have REJECTED CRUZ.
Trump’s good at talking.
Problems (and red flags) surface though, when he’s held accountable for what he says (said) and what he does (did).
You want to ignore all that Trump has stood for, who he supports and has supported.
Why the convenient huge blind spot?
Does the implementation of NAFTA have anything to do with the loss of industrial manufacturing capability in the USA? Or is it just unions, regulations, and politicians?
Has the U.S. economy grown in the past 20 years despite NAFTA, or because of NAFTA?
What’s good for business is good for all Americans. Businesses don’t survive if they don’t have happy customers. Trickle-down economics work. Free trade rules. Capitalism rocks.
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