[A. Pole]

An analogy may make it easier to see. Suppose you have a big department store in a town that was very popular. This store offered a place for the local clothing and goods suppliers to sell their products, and in return asked for a 30% cut for the store. Now this system worked fine for many years, then one day some suppliers came in from out of town and, because of a quirk in the contracts, didn’t have to pay the store their 30% cut. At first these out-of-towners only made a few lower quality, inexpensive products and nobody was very concerned about them. After a while though, these out-of-towners started to improve. They slowly got into the higher priced and higher quality products and because they didn’t have to give the store a cut, they could beat everyone on price. The local suppliers worked feverishly to compete by cutting costs, then wages, then staffs, then products, but they couldn’t overcome the advantage the out-of-towners had on pricing. Then the store told the remaining local suppliers that they had to increase their cut to the store to 40% to keep it open. Soon the local suppliers were so financially weak that the out-of-towners could get any business they went after and the local suppliers started to disappear. In the end, the out-of-town suppliers had nearly all the business, and the store went bankrupt.

Free trade bump.

[neutrino]

Thanks for the ping! Also, take a look at what Warren Buffet said - here

[Happy2BMe]

That story describes perfectly the scenario of "the out-of-towners" undercutting the "locals" into bankruptcy.

"Out-of-towners" being cheap foreign labor and products and "locals" being native American businesses and people going bankrupt.

What we are witnessing is the fortunes of America being sucked off to overseas with the blessings of our own government.

IMHO, this will continue, regardless of whatever regime sits in the Oval Office.