Free trade has won: adapt or die is the only option left to us

Guardian UK ^ | 16 April 2016 | Miriam González

[Lorianne]

The Tata Steel sale has revived the battle between protectionists and free traders, a debate that became particularly acute in the run-up to the creation of the World Trade Organisation in 1995, which marked the success of “free traders” all around the world.

In the protectionist camp, there is now a wide range of political parties from the extreme left to the extreme right: from Syriza to Ukip, from the Front National to Podemos. The common element for all these parties is that they dream of returning to a time when “we were in control”; when we could easily open or close our borders; when the world was manageable and small and we did not have to compromise. That is why they want national rules rather than international ones; and that is also why ultimately most of them despise the EU, because it is based not on direct control but on compromise.

The problem with that notion is that such a cosy world does not exist any more. The new generations expect to talk, travel and trade with each other all over the world, no matter where they are. My children, for example, know more about startup products released for crowdfunding around the world than about what is sold in shops in our high street;

Fluidity, speed, seamlessness and complexity define the 21st century. Fighting those trends makes sense only if you are of such an age and means that you can afford the luxury of whingeing about the present and dreaming nostalgically about the past, but if you are still trying to make your way in life, you have to embrace change and adapt.

[Lorianne]

DSTM

[xzins]

Not yet.

Free trade is a myth.

[Buckeye McFrog]

Free Trade is not even going to win the next election.

[Resolute Conservative]

Always has an always will be as long as we trade outside the US. You cannot control the rules in other places.

[Mase]

A global trade war is on the horizon? Great. That ought to do wonders for everyone's retirement fund.

Then, when the cacophony of cries at the result is heard by government, they can, once again, attempt to confiscate our savings - in our best interest of course - and place it into safe investments that allow for even greater transfers of wealth.

[dfwgator]

This ain’t Free Trade.

[eyeamok]

Offshoring all means of production to use Labor Wages a Slave only dreams about, and then importing those products duty free, is Not FREE and It is not TRADE either, it is National Suicide.

[eyeamok]

I almost forgot, The WORLD needs the USA just to EAT, WE DON’T NEED THEM for ANYTHING. This Country is fully capable of being Self Sufficient.

[JediJones]

Wrong, it is a national boon to our standard of living.

Having the government force us to pay more for a product that we can get cheaper another way is economic suicide.

[Lorianne]

I agree. I’m not to worried as I believe things are going to get a lot more local. And we are largely self-sufficient (if we want to be).

[eyeamok]

Maybe you should compare the Standard of Living regarding the Middle Class today with the 50’s and early 60’s.

Every Man with a regular decent Job, could afford to BUY a House, Boat, RV, Motorcycles,... while his Wife stayed Home and reared Children.

Are you saying that is the norm today?? and if not, then how exactly has our Standard of Living improved, especially when it takes 2 incomes now to just survive.

We may have more modern goodies that make life easier, but Our STANDARD of LIVING is Much. Much Worse than 50-60 years ago.

I don’t define Standard of Living by Modern Goodies, it is much much deeper than that.

[impimp]

Free Trade is critical. Ultimately the right may wind up splitting over this. I could care less about protecting the hard working American worker by implementing common sense protections to make sure we have fair trade. Note how I used the language of the Trumpette in the preceding paragraph.

[4rcane]

Free trade does not require an agreement between governments. What we have is NOT Free trade, but another government program called Free Trade. Its not more free than OPbamacare is Affordable Healthcare.

[dfwgator]

A “Free Trade” agreement should not require 20,000+ pages.

[Soul of the South]

“Having the government force us to pay more for a product that we can get cheaper another way is economic suicide.”

Having the government mandate wages and benefits US companies must pay, working conditions they most provide, environmental regulations they must meet, taxing them at higher levels than any other major industrial country, stifling them with a tort system that encourages the filing of frivolous law suits that amount to legalized shakedowns, and tying them up in numerous “fair” hiring, promoting, and firing rules is national suicide when other countries do not require the same of their factories.

[Forward the Light Brigade]

Trade war will not happen—We can Tax their imports but as we trade nothing for them to Tax (that they do not tax now) they will have to pay up or-—Build Factories in America—hire Americans and sell stuff without an import duty. Maybe use American Parts-—Build cars here and put Goodyear tires on them.

[xzins]

Free trade has never existed. The whole point is to gain an advantage.

[SaraJohnson]

Miriam González enjoys writing while gazing at her false image of superiority and invincibility in the mirror.

[Ozark Tom]

At the root of all national wealth is finding or making something of value. Mining, agriculture, or manufacturing cover the gamut. All the other jobs (support positions) within the economy are just shuffling the deck chairs.

The economic flip side of allowing the manufacturing to go away, is the earning power stagnated at best, and often declined with competition for the remaining positions. For decades the economy has been coasting down-—an ever smaller pool of wealth creating jobs keeping the country afloat-—the less expensive imported goods masking the weakness of stagnant earnings.

The costs of making things in the US would possibly have risen; but, previously the workforce had risen to the challenges. With increases in average productivity, wages did rise sufficient to allow sharing the prosperity. The lure of an economic windfall, the moving of operations out of country for an edge, started the downfall.

A consequence of a curtailment of manufacturing is a loss of the development of expert knowledge, and a broken lineage within which to instill the lore. The guiding structure was dissolved, the traditions laid aside, with only the memories remaining. We depend on another to supply the needs for which we no longer grasp the how. Rome is burning.

[kabar]

Wrong, it is a national boon to our standard of living.

Wrong. It has been a boon to special interests and a disaster for American workers who have seen their jobs outsourced and factories moved abroad. American wages have actually declined since 1969. Our labor participation rates are at a 38 year low.

Good paying jobs are leaving this country. We have a surplus of labor and the jobs that have been created are part-time and lower level service jobs. We bring in 1.1 million legal permanent immigrants a year along with 640,000 guest workers annually. Immigrants are depressing wages and taking American jobs.

Having the government force us to pay more for a product that we can get cheaper another way is economic suicide.

NAFTA at 20: One Million U.S. Jobs Lost, Higher Income Inequality

The study makes for a blood-boiling read. For instance, we track the specific promises made by U.S. corporations like GE, Chrysler and Caterpillar to create specific numbers of American jobs if NAFTA was approved, and reveal government data showing that instead, they fired U.S. workers and moved operations to Mexico.

The data also show how post-NAFTA trade and investment trends have contributed to middle-class pay cuts, which in turn contributed to growing income inequality; how since NAFTA, U.S. trade deficit growth with Mexico and Canada has been 45 percent higher than with countries not party to a U.S. Free Trade Agreement, and how U.S. manufacturing exports to Canada and Mexico have grown at less than half the pre-NAFTA rate.