Free trade loses lustre

The Sunday Times ^ | February 29, 2004

[sarcasm]

WASHINGTON: Free trade is losing support in the US, in particular among high-income Americans, as more professionals feel threatened by job outsourcing to low-wage nations.

A recent poll by a Washington research group found falling support for free trade but the shift was most dramatic among those earning more than $US100,000 ($A130,000) a year.

The University of Maryland's Program on International Policy Attitudes found the percentage of those earning more than $US100,000 who actively supported free trade slid from 57 per cent in 1999 to 28 per cent in January 2004.

These results surprised even the researchers.

"It is rare in any case that any demographic slice drops 20 or 30 points on any issue," said research director Clay Ramsay.

"It certainly provides evidence for the theory that job insecurity is creeping up the income scale."

The poll showed more white-collar Americans joining the blue-collar outcry against globalisation and cast a cloud on the ability of the US to remain a leader in free trade. It also suggested protectionist talk would rise during the presidential election campaign.

But researchers said the results showed a majority of Americans endorsed free trade in principle, even if they believed it was being handled poorly by Washington.

"Feelings about international trade have gone from lukewarm, to luker," said PIPA director Steven Kull.

"Two-thirds say they support the reciprocal lowering of trade barriers but feel more needs to be done to mitigate the effects on workers and the environment." But the trend towards outsourcing of software and engineering jobs to countries such as India had led to a rethink of the benefits.

Senator Charles Schumer wrote recently in the New York Times that free trade had to be reconsidered in light of new economic realities, notably that much of the outsourcing was going to "a relatively few countries with abundant cheap labour".

"When American companies replace domestic employees with lower-cost foreign workers to sell more cheaply in home markets, it seems hard to argue this is the way free trade is supposed to work," Senator Schumer wrote.

[lt.america]

Yes, trade wars are what caused the depression, but what is at hand is outsourcing of jobs, good paying jobs at that, that are not being replaced at the rate at which we are losing them. I do not agree with restrictions on trade, but we can't expect the economic situation to get any better when this is happening. The irony in the whole situation is that we are educating those who are at the receiving end of these jobs.

I don't know what needs to be done, but I know that what is happening right now is only good for the country that is on the receiving end.

[Luis Gonzalez]

Let's try working on a definition of free trade, I'll throw the first barb in.

In America, private (meaning non-governmental) companies are free to run their corporations as they see fit (within the confines of current laws) when it comes as who they hire, without regard as to where they live, as long as both parties enter into the arrangement freely.

Likewise, the American consumer is free to patronize any business they so wish to patronize, or purchase whatever commercial product best suits them, without interference from the force of government.

Is this a start?

[Luis Gonzalez]

"The irony in the whole situation is that we are educating those who are at the receiving end of these jobs."

And raising their income level, thus creating a market for our goods.

[yankeedame]

A recent poll by a Washington research group...

And the name of this group is?

[raloxk]

"When American companies replace domestic employees with lower-cost foreign workers to sell more cheaply in home markets, it seems hard to argue this is the way free trade is supposed to work,""



Except we dont have a free trade agreement with India and yet the jobs are still going.

[Doohickey]

Make no mistake, nobody here is on "the same side as Chuckie".

That quote may make a good sound bite, but you have to remember what Chuckie really means. The only reason he now has a problem with free trade is because it's now annoying his constituents. And what do you think his solution would be?

If you said "more government interference", you would be absolutely correct.

[Paul Ross]

And raising their income level, thus creating a market for our goods.

Correction. A market for their own ...i.e., Indian and Chinese goods... who, since their income is held down to .27 cents an hour, can only afford their own goods...and just laugh their rears off at U.S. priced goods.

[Paul Ross]

Except we dont have a free trade agreement with India and yet the jobs are still going.

They are members of the WTO, even though they have tariffs and import barriers up the ying yang, and have brought no fewer than 17 World Trade complaints against the U.S. Including those against U.S. government contracts requiring domestic content....! They have won many of these trade complaints thanks to the anti-U.S. composition of the World Trade Organization Court.

[MissAmericanPie]

So liberals and conservatives cannot agree that a nuclear strike on America is a bad thing? Because that is basically what Free Trade, in it's present form, is. Only without the burned out buildings.

[Doohickey]

In some cases, maybe. In most cases, I think not.

When labor cost is the only leverage you have in the market, you can't very well allow wages to increase. Indian outsourcers for skilled labor do not offer "service" or "outcome-based" billing. They offer per-hour labor only, because this is their only market advantage.

In the case of China, labor has been completely commoditized - wages will always be low because the goverment decreess that they will be low. Troublesome areas that may crop up will be squashed and replaced to perpetuate commodity-based human resources.

Meanwhile, we here in America do just the opposite. Onerous goverment regulation, a tax structure that punishes success, minimum wage...these things price Americans out of the market to the point that corporations are willing to take their chances that the money saved will offset the lack of flexibility and accountability that offshoring has.

[Walkin Man]

The University of Maryland's Program on International Policy Attitudes found the percentage of those earning more than $US100,000 who actively supported free trade slid from 57 per cent in 1999 to 28 per cent in January 2004.

Sure, well off Americans were all for destroying blue collar workers and their families so they could buy cheap communist slave labor products at the local Great Wall-Mart.

Now that their cushy jobs are being outsourced to India "free trade" is suddenly not such a good thing!

LOL!

How do you like it SUCKERS?!

You, your skills, your education, work record, experience, are all USELESS in the "free trade" paradise we now live survive in.

The ONLY criteria that matters now is, can you do the same work at a third of the wages or less??

The free traitors have not only destroyed over 2 million middle class American jobs, they may also destroy the Republican party along with them!

[jwalsh07]

Sure, well off Americans were all for destroying blue collar workers and their families so they could buy cheap communist slave labor products at the local Great Wall-Mart.

Surely you jest. The pickups in the parking lot at Wal Mart are all tagged with "International Brotherhood of this or that" on their bumpers.

Now I don't buy Chinese crap at Wal Mart or any other place but to pretend that Wal Marts' market is the wealthy and not blue collar guys, which I am one of, is ridiculous.

By the way, if imports are unethical because they take away American jobs, then exports must be unethical as well, no?

[cp124]

They are using any excuse today to threaten our exports. They have already stopped beef and poultry imports from the US.

Exactly...that and China not following the free trade rules is why it isn't working for the US. Add our taxes, regulations, and legal system we don't have a chance. Wait until people stop living off thier refinancing and credit cards.

[Iscool]

Yes, trade wars are what caused the depression

And Rudeboy says the depression was caused by protectionism...So, which is it? The jobs are leaving...High end, middle and low end...We have been infiltrated with millions of illegal aliens that will work for peanuts and will send most of the peanuts back home...Even if you're buying a burger at some joint, you can rest assured the beef in the burger likely came from Argentina or Australia...

The gov't invents (prints) the money...We get the money, spend it, and it leaves the country...It doesn't stay in circulation...So the gov't prints more money...So yesterday a Chinese trinket cost a buck...Today, it 3 bucks but our wages keep going down...

And the mainstream economists, politicians, and a few FReepers keep telling us that it's good for us...

But new jobs are coming, they say...And you ask them what jobs are coming...And they say, uh, I dunno, something will show up, it always has before...May take ten or twenty years like it did back in the 20's, but still it's good for America

[lewislynn]

"When American companies replace domestic employees with lower-cost foreign workers to sell more cheaply in home markets, it seems hard to argue this is the way free trade is supposed to work," Senator Schumer wrote.

He's absolutely right. Call it whatever else you want but "free trade" it ain't.

[Walkin Man]

Upper middle-class may not be their target group but I have seen many 40,000 dollar or so, SUV's in the Great Wall-Mart parking lot.

[lewislynn]

Then perhaps a discussion of how "hardly a liberal" finds so much in common with a real one. Happens more often than you think.

Even among Presidents.

[Doohickey]

It's a real eye-opener to listen to the soulless way management speaks of outsourcing jobs. I had to sit in a meeting just this past Friday listening to how we have to be supportive of it because it "helps the company more forward". Why do I give a rat's ass if the company moves forward if I'm not part of it?

My job isn't immediately affected, and I doubt it ever will be. Gives me the luxury of time to find something else. It's hard to look around the room though and look at all the faces that won't be there in a year.

[Doohickey]

This country is full of morons who have higher car payments than mortgage payments. Don't let $40,000 SUVs fool you into thinking their drivers can actually afford them.

[Iscool]

Now I don't buy Chinese crap at Wal Mart or any other place

Don't try to kid us...If you buy any thing any where in the US, you are buying Chinese "crap"...And I'd bet you leave your Lexus in the garage while you jump into your chevy and head to Wal-mart...