Posted on 05/26/2015 8:25:25 AM PDT by SeekAndFind
An Econ 101 course explains what the classical economist David Ricardo introduced in the early 1800s as the concept of comparative advantage.
To summarize: It's not beneficial for countries to produce everything they want to consume. Instead, they should produce what they can at a lower opportunity cost, thereby wasting fewer relative resources and advancing specialization so all parties involved can benefit from trade. Free trade provides more opportunity for people to prosper.
Without free trade since World War II, a Peterson Institute for International Economics study finds, an average American household would have almost $13,300 less in income per year. It would be particularly depressing given the stagnant wages for many in that period.
Despite numerous benefits of free trade, congressional approval to provide fast-track authority for the Trans-Pacific Partnership (TPP) has provoked concern among liberals and conservatives.
If a clean free trade agreement were made amongst the 12 TPP nations, the treaty would benefit the U.S. and especially the state of Texas.
Though research shows that countries should be cautious when joining a regional free trade agreement due to increased exposure to economic volatility among member countries, reducing trade costs is beneficial, on net, for all involved.
Nafta Success
In addition to the U.S., the TPP includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Lower trade barriers among these 11 TPP countries, with 480 million people representing 15% of global trade, would further boost prosperity in the U.S.
It's important to consider the economic gains to U.S. states from free trade.
For example, research finds that the 1994 North American Free Trade Agreement (Nafta) contributed to Texas' becoming more resilient to both oil-price fluctuations and economic volatility compared to the rest of the nation
(Excerpt) Read more at news.investors.com ...
The underlying theme here is that Federal Government Treaties fuel our American Economy and not hard working legitimately authorized state and local economies.
Texas is used here simultaneously as an excuse (by way of NAFTA for its counter-recession performance under Obama) and a diversion that only Federal Government knows what it is doing. Horsesh!t
Nobody, including the author knows anything because the whole thing is a secret. Folks hear "free" and "trade" and give it the thumbs up because all trade is good?
So, no, Americans have lost everything from these trade agreements, opening our markets to unlimited imports with little to no duties, while at the same time having our imports charged through the nose in ‘local taxes’ even for Canada. Put an end to making us a freebie for the world and sink this latest ‘deal.’ Get the federal government back to being funded by tariffs and duties.
I don’t think they’re saying that “The underlying theme here is that Federal Government Treaties fuel our American Economy and not hard working legitimately authorized state and local economies.”
I think they’re saying that the best thing the federal government can to to help the “hard working...state and local economies.” is to end restrictions imposed by national governments. IOW, get the hell out of the way.
Well...it’s hard to say... Will Texas say NAFTA was the reason their economy is better in this continuing 6 year recession or will they say something else.
My point is the purpose of the piece may be to argue for TPP even though it is so far a bill that is essentially classified SECRET. No details until the deed is approved. Does that sound familiar?
If he is trying to use NAFTA as a persuasion forget it. Thanks to NAFTA we have lost jobs and factories up the wazoo. The only place that is benefiting from NAFTA is Mexico.
“Without free trade since World War II, a Peterson Institute for International Economics study finds, an average American household would have almost $13,300 less in income per year. It would be particularly depressing given the stagnant wages for many in that period.”
ABSOLUTE 100% CERTIFIED RUBBISH!
NAFTA was not passed until 1996 or 50 years after World War II. We were the ONLY Super Power in 1996 since the collapse of the Soviet Union. At that point we were the leaders of the Free World and the only Super Power.
We have ALWAYS had trade and it’s why we were #1 in so many categories. We had Tariffs to PROTECT American jobs! We had the strongest middle class in the world. Which made us special.
All “Free Trade” today means is that they (other countries) pay no “tariffs” to us. It’s free for them to trade with us, BUT..., we still pay tariffs to them. Which in turn encourages jobs in our nation to leave. Companies realize they can AVOID paying tariffs if they leave our country. However, if they stay in America, then they will pay tariffs, have high taxes, high regulation and wages compared to slave labor in other countries with no regulation.
What it should really be called is “Rigid” Trade where one side pays tarries, we the United States Still Pay Tarriffs to China, etc and they, the other countries, get it for free.....
It’s just like playing a “Rigid” poker game where one side clearly benefits and the other side loses. There is no way you can win a rigid poker game.
So if your goal is to destroy the middle class in the United States...., which will hurt conservative base by the way, since eventually it will lead you to only Rich and Poor like every other socialist, communist, 3rd world $hit hole country in the world. THEN.. if that is your goal, to weaken the United States like a sell out Traior, then YES you should be all for it.
As a matter of fact it is so great... They are hiding it from the public because they love you???
How gullible do you have to be to not understand that when they hide it from the public..... it’s NOT GOOD!!!! Government does not love you like Barney the Dinosaur... Didn’t you learn ANYTHING after “you have to pass it in order to find out what is in it” aka Obama care?
This admin hates Texas.
Free trade is a red herring. What about the other “top secret” clauses on migration of workers?
It should really be called “Free For Them (meaning other countries) Trade
VANCE GINN = SELL OUT DECEIVING RAT TRAITOR
How does this writer know? No one has SEEN the bill!
Selling the Secret Treaty / propaganda bump for later...
“Without free trade since World War II, a Peterson Institute for International Economics study finds, an average American household would have almost $13,300 less in income per year.”
Absolutely nonsensical thing to say, because of the Jimmy Carter double-digit inflation.
This admin hates Texas.
Exactly. It’s a cookbook!
Statistics are worthless when they apply to a serial Liar like Obama.
NEVER EVER TRUST Obama with any authority. It is a Pact With The Devil.
That is all I have to know to know, this is a looser deal.
Oh, I see. The Obama administration crafted this trade agreement to benefit their great friend, Texas. Right.
As for the TPP, it will be no more "free trade" than NAFTA is. Those of us who support free trade are likely to get snookered again, as Obama negotiates a treaty that harms the USA.
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