When a country sees a benefit with its employment source being exported it should re-examine it's real effect on GNP. Its corporate sector is gaining but the government sector is eating the cost of unemployment. If the gains made by the corporation are offset by the costs to government, this would be a national loser. What the consumer saves in product cost, is made up by increased taxes. A bummer.
Trade deal should have a JOB IMPACT STUDY to see if it is a winner or a loser.
All of these laid of tin workers are going to retrain as brain surgeons and rocket scientists.
Exactly, and in our case, government loses two ways.
It loses the employment taxes on the labor that was off shored. Those taxes are huge compared to the paltry import tariffs we charge. And then it loses again when it has to support the unemployed.
State and local governments lose out on the sales taxes that would have been spent by the formerly employed. And businesses lose them as customers.
Exactly, and in our case, government loses two ways.
It loses the employment taxes on the labor that was off shored. Those taxes are huge compared to the paltry import tariffs we charge. And then it loses again when it has to support the unemployed.
State and local governments lose out on the sales taxes that would have been spent by the formerly employed. And businesses lose them as customers.