why is free trade so bad?

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yllus

Elite Member & Lifer
Aug 20, 2000
20,577
432
126
Originally posted by: MadRat
If people are going to have benefits from free trade then we need to remove patent protection and other artificial barriers. We also need to require products coming into each market to be cleared at the border in clearinghouses, eliminating the idea of 'exclusivity agreements'. The idea of a clearinghouse is an auction house for products made in foreign countries. This would eliminate the abuse of certain meglo-corporations that currently use exclusivities to wedge themselves as sole market providers. The only way to have open and free trade is to eliminate the conditions that allow the abuse of these circumstances to destroy one's economy in the first place.



What does the removal of intellectual property protections have to do with trade? Research and development of a product can cost thousands, millions or billions - money that is only recouped by taking advantage of the exclusivity to build that product in the future. What point would there be to innovate and create new products if the second you did so, someone backwards engineers it and sells it at a loss until the debt you've incurred to do R&D crushes you? What a terrible idea.
 

dmcowen674

No Lifer
Oct 13, 1999
54,894
47
91
www.alienbabeltech.com
Originally posted by: yllus
Originally posted by: MadRat
If people are going to have benefits from free trade then we need to remove patent protection and other artificial barriers. We also need to require products coming into each market to be cleared at the border in clearinghouses, eliminating the idea of 'exclusivity agreements'. The idea of a clearinghouse is an auction house for products made in foreign countries. This would eliminate the abuse of certain meglo-corporations that currently use exclusivities to wedge themselves as sole market providers. The only way to have open and free trade is to eliminate the conditions that allow the abuse of these circumstances to destroy one's economy in the first place.



What does the removal of intellectual property protections have to do with trade?

Because the big corporate heads that have taken control have changed the game.

Take for example the Blue Jeans Cable Company issue that just came up.

Monster took a plain RCA cable connector and tried to stop another company from producing connectors. It's your boys causing the problems.
 

Vic

Elite Member
Jun 12, 2001
50,415
14,307
136
Originally posted by: dmcowen674
Originally posted by: yllus
Originally posted by: MadRat
If people are going to have benefits from free trade then we need to remove patent protection and other artificial barriers. We also need to require products coming into each market to be cleared at the border in clearinghouses, eliminating the idea of 'exclusivity agreements'. The idea of a clearinghouse is an auction house for products made in foreign countries. This would eliminate the abuse of certain meglo-corporations that currently use exclusivities to wedge themselves as sole market providers. The only way to have open and free trade is to eliminate the conditions that allow the abuse of these circumstances to destroy one's economy in the first place.



What does the removal of intellectual property protections have to do with trade?

Because the big corporate heads that have taken control have changed the game.

Take for example the Blue Jeans Cable Company issue that just came up.

Monster took a plain RCA cable connector and tried to stop another company from producing connectors. It's your boys causing the problems.

Could it actually be possible for you to have misunderstood that situation any worse?
 

piasabird

Lifer
Feb 6, 2002
17,168
60
91
There is no such thing as free trade. It only protects foreign trade not US Trade. There is nothing fair about it.
 

Braznor

Diamond Member
Oct 9, 2005
4,514
351
126
Originally posted by: piasabird
There is no such thing as free trade. It only protects foreign trade not US Trade. There is nothing fair about it.

 

Craig234

Lifer
May 1, 2006
38,548
349
126
Originally posted by: daishi5
Originally posted by: Craig234
Originally posted by: Atreus21
It's simplified on purpose. Premises generally are.

Free trade is good. The reason for this is that generally the individual is more capable in dictating his needs than having them provided for by an external party. Is regulation necessary to some extent? Yes, of course. But it's something that is wisely undertaken in measured steps.

As I said in my post, the success of the west is testament in part to the success of capitalism. I provided for the fact that its successes are attributable also to other sources. But I place much of it at the feet of the wisdom in the general understanding that free trade is good.

I don't care whether any of my statements are damaging the discussion. I only care that I'm making as factual a statement as I know how. Again, no economic system prevents or cures all societal ills. To date, capitalism comes the closest.

I don't see how anyone can argue that capitalism and communism/socialism/or any other economic system to date are two sides of the same coin, except to say that they are polar opposites. One works in human society. The other doesn't. Period.

There's not much point in a detailed response, since you show no interest in the actual issues.

So, suffice it to say to your last summarizing comment, you are claiming that no matter how repressive the situation for most people, with or without any democracy, as long as it's capitalism, it 'works', period for people, and that countries like Sweden which are relatively socialist simply 'don't work for people'.

You are not interested in the facts, the truth, the issue, so why you post, I don't know. But good luck.

If you believe fair trade is bad, and allows other people to be taken advantage of, please go write you state senator and have him raise tariffs on any state that has a lower median wage than you to protect those workers.

If that statement sounds stupid to you, replace state with nation. If you think protectionism is good for our nation, than it should be just as good for your state, or even your city.

Free trade is just trade that is more efficient, without protectionist barriers. And, trade is good, and has been good for every nation that participates. Do you remember when hong kong made our cheap crap? Now they have a much higher standard of living. I am not going to tell you that every nation we trade with is going to immediately become paradise, but can you please name me one nation that over more than 20 years of trading with us, their workers lives have gotten worse instead of better?

I know trade benefitted, south korea, pakistan, hong kong, malaysia, and mexico off the top of my head. If free trade hurts other people, please name a nation where people are worse off after trade than before. We have plenty of examples of nations trading, by this time you should no longer need hypothetical situations, you should have proof.

You make some good points, but also some weak ones. Your better points are the reminders of the potential benefits of trade; weaker ones include attempting to equate the issues the competition between the labor forces of the wealthy United States and of poor nations, with the 'issues' you try to claim exist between the labor forces of states which have much lower levels of inequality.

I'm also confused by your use of the phrase 'fair trade' for what appears to be where you should use 'free trade'; fair trade means something else.

In short:

We agree that there are benefits to 'globalization', to trade. That's the clearest way to change some of the huge inequities in wealth in the world, to help poorer countries.

So, my points are not simply to advocate protected trade. Rather, they are to call for well-managed moves to globalization.

You can do it in a way which harms many Americans, or you can do it in a way which provides some protections for American workers for a more gradual transition, where the workers are provided other opportunities, and training, etc. while still creating opportunities for the other countries' workers. The idea is for the poor countries to increase their productivity and wealth, not to simply reduce America's.

You say that everyone has benefitted from free trade as it's done now. I've seen documentary footage of the pollution around some of these free trade areas - pollution incented by the competition for the factories - which the workers' families live in and suffer from. I've seen the footage inside a poor hospital filled with lines of parents carrying children sickened by the pollution, I've seen the statistics about the pollution-caused illnesses shooting up. Those people are not so clearly benefitting.

I've seen reports of disruptions from the factories; even those who are not involved can be affected, as the economics change; the injections of cash can raise prices for farm families, for example, create new wealthy classes who buy up the resources in the nation, and others can suffer.

What I've said is better is not to oppose globalization, but to implement it with some protections. Protect workers' rights to organize rather than undermining them with regional competition for factories. Provide protections for reducing pollution, rather than incenting the companies to pollute.

Free trade is just trade that is more efficient, without protectionist barriers.

That's an overly simplistic description, ignoring many aspects of 'free trade'. You could call for the repeal of anti-slavery laws with the same simplistic argument - it's just 'more efficient' labor 'without protectionist barriers'. Efficiency isn't the only important issue in economic policies. There are people issues that matter.

 

BigDH01

Golden Member
Jul 8, 2005
1,630
82
91
Free trade should increase the wealth of the world as a whole as nations that are good in one "factor" basically specialize in that factor and can use those resources better than a nation that is factor weak in that resource.

The US is factor rich in capital. Capital in the US can outcompete capital coming from Asia or Africa because we have more of it and can offer it cheaper. Free trade theory basically states that capital in the US will do well. Unfortunately for Americans, the single greatest asset most of us own are our homes. Most Americans basically have little to negative net worth. Most of us are laborers.

Places like southeast Asia are labor rich. Labor will move to these countries where laborers will enjoy an increased standard of living. Capitalists in these countries will suffer.

With free trade conditions, there is no stopping the above. We are certainly seeing the truth of it. Capitalists in the US are doing better than ever while most of the population is becoming poorer. This is the natural evolution of things, and unfortunately, many Americans have been convinced that this is best for them.
 

silverpig

Lifer
Jul 29, 2001
27,709
11
81
Originally posted by: Harvey
Bullshit! We can and should worry about what other countries do. Manufacturing goods for the American market in countries with exploitive working conditions kills American jobs, which is reflected in higher unemployment, in turn reducing tax revenues and raising the costs of dealing with the resulting problems.

It's funny, I see people arguing this point a lot. In my university's student council election debates several years ago, someone asked the question of the candidates: "I have noticed that the <student run campus clothing store> sells clothes primarily made in Guatemala and Honduras. It is well known that these countries exploit workers in sweat shops to produce their goods and I want to know what you will do about it."

Most of the candidates gave the "safe" answer: "I... uh... didn't know about that. Well I'd encourage that store, and all student owned stores to buy goods made in Canada."

The last candidate was hispanic. Her answer: "I'm from Guatemala. My family still lives there. People here feel bad that their clothes come from my country, and they want to take those jobs away. The fact is, while people work long hours for little pay, it's better than the alternative. If you take those jobs away, some people in my family would have nothing and they would starve. Yes it isn't the greatest situation right now, but the solution isn't to take their jobs away, but to help their economy go forward."
 

MadRat

Lifer
Oct 14, 1999
11,924
259
126
Let us look at the latest high tech toys in the military for a second. America could afford to spend 3x the labor that went into a World War 2 bomber to make 20,000 copies of just one type in a span of a few years. The F-22 is relatively 20x the cost of said bomber although the actual labor factor is what they cite as the most significant cost. This doesn't make sense until you factor in the intellectual costs of these kinds of projects. The materials and engineering costs are significantly higher today for the F-22 than they were in comparison to say the B-29 of WW2. Instead of the blue collar worker getting the majority of the labor wages for the project, the vast majority of the money is sucked up by a relative smaller number of white collar workers. It is hard to believe that the much smaller population base of 1945 was able to support 20,000 copies of a single warplane when in today's technology we will barely want to afford 183 of the F-22.

But the skewing of the economy for the F-22 program is a just a sign of the times. Every major industrial product is turning into the same deal. The middle class worker is getting washed out of the system. Your highly paid engineer is at the top end and your exploited human laborer in a foreign country is at the other end. The traditional middle class worker is being thrown to the wild forces of nature and expected to scratch and claw a living against the shrinking base of jobs.
 

orangat

Golden Member
Jun 7, 2004
1,579
0
0
Originally posted by: daishi5
Originally posted by: Craig234
Originally posted by: Atreus21
It's simplified on purpose. Premises generally are.

Free trade is good. The reason for this is that generally the individual is more capable in dictating his needs than having them provided for by an external party. Is regulation necessary to some extent? Yes, of course. But it's something that is wisely undertaken in measured steps.

As I said in my post, the success of the west is testament in part to the success of capitalism. I provided for the fact that its successes are attributable also to other sources. But I place much of it at the feet of the wisdom in the general understanding that free trade is good.

I don't care whether any of my statements are damaging the discussion. I only care that I'm making as factual a statement as I know how. Again, no economic system prevents or cures all societal ills. To date, capitalism comes the closest.

I don't see how anyone can argue that capitalism and communism/socialism/or any other economic system to date are two sides of the same coin, except to say that they are polar opposites. One works in human society. The other doesn't. Period.

There's not much point in a detailed response, since you show no interest in the actual issues.

So, suffice it to say to your last summarizing comment, you are claiming that no matter how repressive the situation for most people, with or without any democracy, as long as it's capitalism, it 'works', period for people, and that countries like Sweden which are relatively socialist simply 'don't work for people'.

You are not interested in the facts, the truth, the issue, so why you post, I don't know. But good luck.

If you believe fair trade is bad, and allows other people to be taken advantage of, please go write you state senator and have him raise tariffs on any state that has a lower median wage than you to protect those workers.

If that statement sounds stupid to you, replace state with nation. If you think protectionism is good for our nation, than it should be just as good for your state, or even your city.

Free trade is just trade that is more efficient, without protectionist barriers. And, trade is good, and has been good for every nation that participates. Do you remember when hong kong made our cheap crap? Now they have a much higher standard of living. I am not going to tell you that every nation we trade with is going to immediately become paradise, but can you please name me one nation that over more than 20 years of trading with us, their workers lives have gotten worse instead of better?

I know trade benefitted, south korea, pakistan, hong kong, malaysia, and mexico off the top of my head. If free trade hurts other people, please name a nation where people are worse off after trade than before. We have plenty of examples of nations trading, by this time you should no longer need hypothetical situations, you should have proof.

Almost all the examples you quoted do not implement free trade. South Korea, Hong Kong, Malaysia protect their markets at least in certain sectors. Mexico embraced free trade and got totally burnt and is now in the doghouse.

You are right, we don't need to discuss purely hypothetical scenarios anymore. Latin America and Africa had their lost decades in the 80s after following neoliberal economic policies dictated by the IMF/WB/WTO. Some countries there continued into a second lost decade. Congress set up a commission around 2000 to investigate the dismal failure and found out that globalization interests were driven by western countries at the expense of the poor.

Indonesia, Philippines, Thailand (to a lesser extent) are among the ones that come to mind among South east Asian countries which didn't make much progress despite decades of free trade.

As some other posters repeatedly keep telling, free trade is not a yes/no option. Free trade is simply that. Free trade does not concern itself with environmental health, human rights or national sovereignity which is why all countries have industry regulations to safeguard their citizens. All wealthy western countries practise a mixed economy not one that is strictly capitalist. Nordic countries do extremely well with their more socialist economies because it works for them. All wealthy western countries open up their markets carefully and weigh the benefits/costs before doing so.

The US can't even feed itself by purely capitalist methods. It needs the socialism of farm subsidies to survive. Then it overdoes it and exports its surplus to a poor country and drives out a million farmers out of a job. Free trade does not work for those farmers because the social cost of those farmers being jobless far far outweighs whatever benefits that might accrue with some of them retraining to work as fast food or car wash workers.

The talk about free trade being 'the future' and 'unstoppable' is clearly false. Its not what successful economies in the west or east are doing.
 

Vic

Elite Member
Jun 12, 2001
50,415
14,307
136
Originally posted by: silverpig
Originally posted by: Harvey
Bullshit! We can and should worry about what other countries do. Manufacturing goods for the American market in countries with exploitive working conditions kills American jobs, which is reflected in higher unemployment, in turn reducing tax revenues and raising the costs of dealing with the resulting problems.

It's funny, I see people arguing this point a lot. In my university's student council election debates several years ago, someone asked the question of the candidates: "I have noticed that the <student run campus clothing store> sells clothes primarily made in Guatemala and Honduras. It is well known that these countries exploit workers in sweat shops to produce their goods and I want to know what you will do about it."

Most of the candidates gave the "safe" answer: "I... uh... didn't know about that. Well I'd encourage that store, and all student owned stores to buy goods made in Canada."

The last candidate was hispanic. Her answer: "I'm from Guatemala. My family still lives there. People here feel bad that their clothes come from my country, and they want to take those jobs away. The fact is, while people work long hours for little pay, it's better than the alternative. If you take those jobs away, some people in my family would have nothing and they would starve. Yes it isn't the greatest situation right now, but the solution isn't to take their jobs away, but to help their economy go forward."

How dare that politician deprive people of their black-and-white views of the world!!
 

Jhhnn

IN MEMORIAM
Nov 11, 1999
62,365
14,681
136
Commerce is a way to circulate wealth and resources, with trade simply extending that beyond national borders. And there are a variety of circulatory paths involved, some of which benefit a few, some of which benefit many, some of which ultimately transfer wealth from one group to another. Which is not to say that growth isn't a factor.

Cutting taxes for those at the top encourages investment, for sure, but that investment isn't occuring in this country, but rather overseas where a variety of factors improve profit margins when selling consumer goods back into the US market. Instead of the classic closed loop theory of economics, we have an open loop at the national level, where increased profits are increasingly invested elsewhere and where balance of trade deficits slowly transfer even more wealth out of the nation. When those funds eventually return, they aren't used to buy comsumer goods, but rather as investments in money-making propositions, further enhancing the wealth extraction effect. Even as the economy grows, true wealth concentrates into the hands of fewer and fewer entities, many of them foreign.

It's not rocket science, at all, but something based on the whole capitalist concept of ownership. When a company's domestic workers do a great job, allowing sufficient capital accumulation to open a new division in China and that new division in China becomes highly profitable, the domestic workers don't get a bonus, don't share in the success they've helped to create (beyond their wage+benefits)- they get laid off... because they have no ownership. The only way that the public, the workers, can express any sort of ownership is in terms of restrictions on capital exports, and as taxes redistributed in the domestic economy. Which is, in a democracy, their right.

And, of course, factory closings have a larger effect on the local economy- overall business activity decreases, capital dries up. The rust belt is testimony to this.

Eventually, the situation is self correcting via the mechanism of currency devaluation, which is what we're starting to see. We've flooded the world markets with dollars at a rate that the rest of the world can't properly absorb. The supply is greater than the demand, so the value goes down... but that devaluation doesn't undo the wealth transfer that has already occurred, but rather strengthens and entrenches it... As the dollar falls, the value of foreign holdings goes up in relative terms... Who wins? Who loses? the answers are obvious, as Craig234 points out, above...
 

HombrePequeno

Diamond Member
Mar 7, 2001
4,657
0
0
Free trade is bad? That's news to me.

I always hear talk of exploitation, poor environmental standards, poor labor practices and of course the always popular "they took ur jebs!" To be honest some of those do actually have merit, particularly the last one. Yes, there are losers in free trade. Overall the pie is bigger but the distribution of who gets that pie is going to skew toward the higher educated for the US. Free trade for the most part won't cause unemployment, it'll just shuffle around the make up of the job market making the unskilled jobs lower paying and the skilled jobs more attractive. This is actually one thing our government can directly deal with. I know redistribution of wealth via the government is kind of a dirty phrase if you want everyone to be on board with free trade, the losers from free trade are going to have to see at least part of that bigger pie.

Exploitation and poor labor standards is not something we can directly effect. Major labor movements will come forth when the supply of labor stops being nearly perfectly elastic. Wages will rise and with that comes more power to the worker who then can demand better working conditions. Taking away free trade depresses their wages and gives them less power.

The word exploitation is overused, me thinks. While yes, corporations do take advantage of the fact that the people in developing nations are willing to work for ridiculously low wages, there is a reason the people are willing to accept them. These people can get better, more stable pay than subsistence farming where they are likely horribly indebted to the local money lender. The health hazards are similar so the choice is clear for a lot of them.

Now the environment...that is a tough one. The problem with the environment is that maintaining it is more costly (excluding cost externalities). Heck, the US hasn't really been huge on the environment until fairly recently. Maybe instead of raising trade barriers we could possibly provide aid geared toward more environmentally friendly companies. I mean, it's our planet too, right? Considering we're the ones that can afford it the best, shouldn't the western countries be ponying up some cash to clean up developing environments as well?
 

blackangst1

Lifer
Feb 23, 2005
22,914
2,359
126
Originally posted by: orangat
Indonesia, Philippines, Thailand (to a lesser extent) are among the ones that come to mind among South east Asian countries which didn't make much progress despite decades of free trade.


Although I agree with most everything you said, but this statement is catagorically wrong. The Philippines is the fastest growing country for call centers and financial centers in the world, due to english literacy rates, favorable pricing, and quality of applicants. Viet Nam is a rising star also.

There's a ton of articles as support, and as for myself, someone who travels to SE Asia a few times/year, I can tell you Makati PI, for example, grows noticable every time I go. It's very high end, and very wealthy.

just FYI.
 

1EZduzit

Lifer
Feb 4, 2002
11,834
1
0
Originally posted by: HombrePequeno
Free trade is bad? That's news to me.

I always hear talk of exploitation, poor environmental standards, poor labor practices and of course the always popular "they took ur jebs!" To be honest some of those do actually have merit, particularly the last one. Yes, there are losers in free trade. Overall the pie is bigger but the distribution of who gets that pie is going to skew toward the higher educated for the US. Free trade for the most part won't cause unemployment, it'll just shuffle around the make up of the job market making the unskilled jobs lower paying and the skilled jobs more attractive. This is actually one thing our government can directly deal with. I know redistribution of wealth via the government is kind of a dirty phrase if you want everyone to be on board with free trade, the losers from free trade are going to have to see at least part of that bigger pie.

Exploitation and poor labor standards is not something we can directly effect. Major labor movements will come forth when the supply of labor stops being nearly perfectly elastic. Wages will rise and with that comes more power to the worker who then can demand better working conditions. Taking away free trade depresses their wages and gives them less power.

The word exploitation is overused, me thinks. While yes, corporations do take advantage of the fact that the people in developing nations are willing to work for ridiculously low wages, there is a reason the people are willing to accept them. These people can get better, more stable pay than subsistence farming where they are likely horribly indebted to the local money lender. The health hazards are similar so the choice is clear for a lot of them.

Now the environment...that is a tough one. The problem with the environment is that maintaining it is more costly (excluding cost externalities). Heck, the US hasn't really been huge on the environment until fairly recently. Maybe instead of raising trade barriers we could possibly provide aid geared toward more environmentally friendly companies. I mean, it's our planet too, right? Considering we're the ones that can afford it the best, shouldn't the western countries be ponying up some cash to clean up developing environments as well?

Say what??

You laugh at the people who've lost there jobs because companies outsource to places where the cost of living is so much cheaper then turn around and want this country to pony up the cash to clean up developing countries messes caused by greedy coporations?

Your brain obviously isn't hitting on all of it's cylinders.
 

piasabird

Lifer
Feb 6, 2002
17,168
60
91
When the US Govt bails out the housing industry that is a violation of Free Trade. Any time the Government helps a business this is a violation of Free Trade. When Korea tried to subsidise the Computer Memory Industry, that was a violation of free trade, because that meant they were not competing on the open market. In Germany AMD was bailed out by the Government of Germany to help bring their new Quad Processors to market when they were having trouble. That is not free trade. Free Trade does not exist.
 

Genx87

Lifer
Apr 8, 2002
41,095
513
126
Originally posted by: silverpig
Originally posted by: Harvey
Bullshit! We can and should worry about what other countries do. Manufacturing goods for the American market in countries with exploitive working conditions kills American jobs, which is reflected in higher unemployment, in turn reducing tax revenues and raising the costs of dealing with the resulting problems.

It's funny, I see people arguing this point a lot. In my university's student council election debates several years ago, someone asked the question of the candidates: "I have noticed that the <student run campus clothing store> sells clothes primarily made in Guatemala and Honduras. It is well known that these countries exploit workers in sweat shops to produce their goods and I want to know what you will do about it."

Most of the candidates gave the "safe" answer: "I... uh... didn't know about that. Well I'd encourage that store, and all student owned stores to buy goods made in Canada."

The last candidate was hispanic. Her answer: "I'm from Guatemala. My family still lives there. People here feel bad that their clothes come from my country, and they want to take those jobs away. The fact is, while people work long hours for little pay, it's better than the alternative. If you take those jobs away, some people in my family would have nothing and they would starve. Yes it isn't the greatest situation right now, but the solution isn't to take their jobs away, but to help their economy go forward."

It shows what a idelistic view of the world many in the United States have. Maybe they should get in a dalorian and head back in time to the United States 100 years ago and see how our working conditions and pay were. However what happened was we built up enough capital to advance ourselves and increase our standards of living and working conditions.

People who have knee jerk reactions to cut off trade to these 3rd world countries because the people working in these shops work under conditions that are appaling by our standards arent doing those people any favors. You cut off the trade and where do those people go? They go back to being unemployed with little ability to advance their standard of living.
 

orangat

Golden Member
Jun 7, 2004
1,579
0
0
Originally posted by: blackangst1
Originally posted by: orangat
Indonesia, Philippines, Thailand (to a lesser extent) are among the ones that come to mind among South east Asian countries which didn't make much progress despite decades of free trade.
Although I agree with most everything you said, but this statement is catagorically wrong. The Philippines is the fastest growing country for call centers and financial centers in the world, due to english literacy rates, favorable pricing, and quality of applicants. Viet Nam is a rising star also.

There's a ton of articles as support, and as for myself, someone who travels to SE Asia a few times/year, I can tell you Makati PI, for example, grows noticable every time I go. It's very high end, and very wealthy.
just FYI.
If the history of the Philippines was only about 5 years old and totally concentrated in Makati city, you might be right. Problem is that Philippines have suffered an unequal relationship incl trade with the US since it was colonized. I'm sure the Philippines is an attractive place to invest in call centers just as the southern states in US, Australia, NZ was for a short while, perhaps India would give Philippines some competition in the race to the bottom.

I don't know if I can trust any self serving periodicals and journals anymore. Before the Asian crisis, they all proclaimed the liberalizing of financial markets which led to the meltdown was nothing to worry about and free trade was the greatest thing on earth. I've stayed at the Dusit and I know well enough that wealthy Makati is only a very tiny bit of the Philippines. The Philippines now suffers from a structural deficit in its food production and is forced to rely more on imports and the recent food prices have really hurt the average Filipino.

See my next post down.
 

orangat

Golden Member
Jun 7, 2004
1,579
0
0
Originally posted by: Genx87
Originally posted by: silverpig
Originally posted by: Harvey
Bullshit! We can and should worry about what other countries do. Manufacturing goods for the American market in countries with exploitive working conditions kills American jobs, which is reflected in higher unemployment, in turn reducing tax revenues and raising the costs of dealing with the resulting problems.
It's funny, I see people arguing this point a lot. In my university's student council election debates several years ago, someone asked the question of the candidates: "I have noticed that the <student run campus clothing store> sells clothes primarily made in Guatemala and Honduras. It is well known that these countries exploit workers in sweat shops to produce their goods and I want to know what you will do about it."

Most of the candidates gave the "safe" answer: "I... uh... didn't know about that. Well I'd encourage that store, and all student owned stores to buy goods made in Canada."

The last candidate was hispanic. Her answer: "I'm from Guatemala. My family still lives there. People here feel bad that their clothes come from my country, and they want to take those jobs away. The fact is, while people work long hours for little pay, it's better than the alternative. If you take those jobs away, some people in my family would have nothing and they would starve. Yes it isn't the greatest situation right now, but the solution isn't to take their jobs away, but to help their economy go forward."

It shows what a idelistic view of the world many in the United States have. Maybe they should get in a dalorian and head back in time to the United States 100 years ago and see how our working conditions and pay were. However what happened was we built up enough capital to advance ourselves and increase our standards of living and working conditions.

People who have knee jerk reactions to cut off trade to these 3rd world countries because the people working in these shops work under conditions that are appaling by our standards arent doing those people any favors. You cut off the trade and where do those people go? They go back to being unemployed with little ability to advance their standard of living.

If people went back in time, they would find out that European countries did not implement free trade until their economies were strong enough to compete on fairly equal terms. They erected trade barriers and didn't give a rats ass about intellectual property all in order to build up their economies. The issue is not whether free trade should be implemented or not but for developing countries to implement it on their own terms just as Europeans, US, Japan, Taiwan, Korea did and China, India are now doing to some extent.

Framing the question to only highlight the problem of workers in the 3rd world losing their sweatshop jobs is misleading. They might not be working in a sweatshop if subsidized US grain was not dumped in their country below the cost of production and driving them out of their original farming jobs. Pundits claim sweatshops are supposedly how far east countries like Japan got it made and even necessary as an initial stage of development. But they don't know or don't tell is that their low wages were higher in real terms back then and Japan built up its own local industry through govt subsidies, protection, restriction, many very unfree trade-like measures.
 

HombrePequeno

Diamond Member
Mar 7, 2001
4,657
0
0
Originally posted by: 1EZduzit
Originally posted by: HombrePequeno
Free trade is bad? That's news to me.

I always hear talk of exploitation, poor environmental standards, poor labor practices and of course the always popular "they took ur jebs!" To be honest some of those do actually have merit, particularly the last one. Yes, there are losers in free trade. Overall the pie is bigger but the distribution of who gets that pie is going to skew toward the higher educated for the US. Free trade for the most part won't cause unemployment, it'll just shuffle around the make up of the job market making the unskilled jobs lower paying and the skilled jobs more attractive. This is actually one thing our government can directly deal with. I know redistribution of wealth via the government is kind of a dirty phrase if you want everyone to be on board with free trade, the losers from free trade are going to have to see at least part of that bigger pie.

Exploitation and poor labor standards is not something we can directly effect. Major labor movements will come forth when the supply of labor stops being nearly perfectly elastic. Wages will rise and with that comes more power to the worker who then can demand better working conditions. Taking away free trade depresses their wages and gives them less power.

The word exploitation is overused, me thinks. While yes, corporations do take advantage of the fact that the people in developing nations are willing to work for ridiculously low wages, there is a reason the people are willing to accept them. These people can get better, more stable pay than subsistence farming where they are likely horribly indebted to the local money lender. The health hazards are similar so the choice is clear for a lot of them.

Now the environment...that is a tough one. The problem with the environment is that maintaining it is more costly (excluding cost externalities). Heck, the US hasn't really been huge on the environment until fairly recently. Maybe instead of raising trade barriers we could possibly provide aid geared toward more environmentally friendly companies. I mean, it's our planet too, right? Considering we're the ones that can afford it the best, shouldn't the western countries be ponying up some cash to clean up developing environments as well?

Say what??

You laugh at the people who've lost there jobs because companies outsource to places where the cost of living is so much cheaper then turn around and want this country to pony up the cash to clean up developing countries messes caused by greedy coporations?

Your brain obviously isn't hitting on all of it's cylinders.

Yeah, I must be crazy. Given the choice between raising the poors' wages (the real poor, not the relatively poor) and helping pay to have a cleaner environment or lowering the poors' wages and allowing them to pollute the environment, I choose the former. We gain both ways on the former one (better environment and larger economy) and lose both ways on the second one (lower growth and worse overall economy).

These developing countries, whether we allow free trade with them are not, are going to have poor environmental standards either way until they can afford to implement more environmentally friendly solutions. Chances are they aren't going to be able to afford that if the larger economies put up trade barriers to block what they have an advantage in.

But hell, I must be crazy to want a clean environment and a better economy.
 
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