You’re Speaking My Language
This is the kind of piece I love to see – from Donald Boudreaux in the Christian Science Monitor:
Everyone knows that a key to the Democrats’ big electoral win was their opposition to the Iraq war. But also, as the Wall Street Journal reported recently, “Democrats’ stances against free trade helped build the party’s success at the polls and could tip the balance on trade matters. The new dynamic could put a definitive end to the already troubled effort to reach a global agreement to reduce tariffs and open markets….”
Protectionists (of whatever party) believe that consumers who buy goods and services from foreigners cause domestic employment – and wages – to fall. Economists since before Adam Smith have shown that this belief is mistaken, largely because foreigners sell things to us only because they either want to buy things from us or invest in our economy.
These activities employ workers here at home and raise their wages. Mountains of empirical evidence show that protectionism is economically destructive. The facts also show that protectionism is inconsistent with a desire for peace – a desire admirably expressed by many Democrats during the recent campaigns.
…Senators-elect Sherrod Brown (D) of Ohio and Jim Webb (D) of Virginia probably don’t realize it, but by endorsing trade protection, they actually work against the long-run prospects for peace that they so fervently desire.
Amen to that…
I’m a free trade firebrand, but the editorial slips on the same “aggregate fallacy” (to coin a phrase) that plagued discussions of the domestic economy. Just because the economy as a whole is doing better doesn’t mean that everyone, or even most people, are doing better. Same applies to the gains from free trade: the gains are broadly distributed, while the losses are heavily concentrated (not coincidentally in rust belt states where protectionist Dems did quite well).
And the whole bit about peace is really too silly to even go in to.
And watch for the corresponding rise in inflation & cost of living. What knuckleheads — “we demand worker’s rights or it’s nada” is not a zero-sum game. he only way to improve those ‘poor’ workers is to give them trade so that their standard of living will rise and in turn increase their clout to eventually enjoy the same rights that these knuckleheads take for granted. It won’t happen overnight simply by wishing it so and certainly won’t happen if they just up and take their marbles home.
Fair Trade? Yeah, right. Earth to Socialist Donks & Rockefella Repubs, Grow up and get a clue!!
jpe, I don’t think the peace part is wrong…it’s a fact that countries with close economic ties are far less likely to go to war…just look at North Korea and China!…