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What to Expect When You’re Free Trading
New York Times ^ | January 16, 2008 | STEVEN E. LANDSBURG

Posted on 01/16/2008 4:01:09 AM PST by LowCountryJoe

Rochester

IN the days before Tuesday’s Republican presidential primary in Michigan, Mitt Romney and John McCain battled over what the government owes to workers who lose their jobs because of the foreign competition unleashed by free trade. Their rhetoric differed — Mr. Romney said he would “fight for every single job,” while Mr. McCain said some jobs “are not coming back” — but their proposed policies were remarkably similar: educate and retrain the workers for new jobs.

All economists know that when American jobs are outsourced, Americans as a group are net winners. What we lose through lower wages is more than offset by what we gain through lower prices. In other words, the winners can more than afford to compensate the losers. Does that mean they ought to? Does it create a moral mandate for the taxpayer-subsidized retraining programs proposed by Mr. McCain and Mr. Romney?

Um, no. Even if you’ve just lost your job, there’s something fundamentally churlish about blaming the very phenomenon that’s elevated you above the subsistence level since the day you were born. If the world owes you compensation for enduring the downside of trade, what do you owe the world for enjoying the upside?

[Snip]

One way to think about that is to ask what your moral instincts tell you in analogous situations. Suppose, after years of buying shampoo at your local pharmacy, you discover you can order the same shampoo for less money on the Web. Do you have an obligation to compensate your pharmacist? If you move to a cheaper apartment, should you compensate your landlord? When you eat at McDonald’s, should you compensate the owners of the diner next door? Public policy should not be designed to advance moral instincts that we all reject every day of our lives.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Editorial; Government; Philosophy
KEYWORDS:
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To: am452

“So how many of the 3 million manufacturing jobs were lost to productivity versus companies closing down plants and offshoring them?”

Great question, however, I don’t think that kind of statistic exists, if it does, please provide a link. (anyone?) I’d love to see the numbers.

I believe that Todd’s numbers (dollars of manufactured finished goods shipped) are distorted by aircraft sales in the last 3-4 years as Boeing has had a substantial increase in deliveries, but the local content of Boeing Aircraft (labor and materials) has been reduced substantially....I tried to find stats less aircraft and I couldn’t find them.

Aircraft with a list price of $80 to $120 million or more per frame, would have a great impact on dollars of finished goods shipped.

I doubt that Todd can prove that productivity gains amount to more than a few percentage points of total mfg job losses.


141 posted on 01/16/2008 10:04:08 AM PST by Halgr (Once a Marine, always a Marine - Semper Fi)
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To: Mase
You're the one who defended using EPI as a source. My comments were directed specifically to your defense of them. Period.

Sorry if it upsets you that I posted from two sides of the spectrum and they came to the same conclusions. All it does is solidify the concerns about globalistic goals.

Lou Dobbs is a fraud who's in this for his own personal gain.

lol....that settles it then....according to you. But your opinion I take with a grain of salt.

142 posted on 01/16/2008 10:09:26 AM PST by nicmarlo (I hereby declare my support for Duncan Hunter. 1/10/08; late to the party, but I have arrived!)
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To: nicmarlo; Mase
lol....that settles it then....according to you. But your opinion I take with a grain of salt.

Mase works for a company that has 2 plants in China. No bias there. ROTFLMAO.

143 posted on 01/16/2008 10:15:40 AM PST by am452 (Globalist: Converting the American people to the Democrat party since 1992)
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To: am452

CNN broadcasts to China. Where’s your ire at Lou Dobbs?


144 posted on 01/16/2008 10:17:20 AM PST by 1rudeboy
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To: am452; Mase
Mase works for a company that has 2 plants in China. No bias there.

If Mase works for a company with a history of outsourcing to China, wouldn't protectionism be in his personal best interest? His job could be next? I respect that he doesn't demand that I pay higher prices to protect HIS job.

145 posted on 01/16/2008 10:19:16 AM PST by Fan of Fiat
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To: am452; Mase
Mase works for a company that has 2 plants in China. No bias there. ROTFLMAO.

Nope. None whatsoever. Thanks for that little tidbit of information, hehehe.

146 posted on 01/16/2008 10:20:08 AM PST by nicmarlo (I hereby declare my support for Duncan Hunter. 1/10/08; late to the party, but I have arrived!)
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To: am452

Now that I think about it, doesn’t Ted Turner still own CNN? That would place his signature on Lou Dobbs’ paycheck. If you guys feel the need to try the guilt-by-association angle, you really need to think it through.


147 posted on 01/16/2008 10:21:21 AM PST by 1rudeboy
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To: nicmarlo
Nope. None whatsoever. Thanks for that little tidbit of information, hehehe.

LOL! So says he who sources from "Bought and Paid for by Union Bosses" EPI.

148 posted on 01/16/2008 10:23:50 AM PST by Fan of Fiat
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To: Fan of Fiat

Yeah...amazing how their information reaches the same conclusion as conservative patriot Phyllis Schalfy’s from Eagle Forum and Lou Dobb’s, who’s against lawbreaking illegal aliens and the U.S. employers who illegal hire them.

FOFLOL


149 posted on 01/16/2008 10:25:33 AM PST by nicmarlo (I hereby declare my support for Duncan Hunter. 1/10/08; late to the party, but I have arrived!)
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To: nicmarlo

It’s not amazing at all (except to you, perhaps). Both favor expanding governmental power at the expense of individual liberty.


150 posted on 01/16/2008 10:27:51 AM PST by 1rudeboy
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To: 1rudeboy; processing please hold; calcowgirl

Schlafly, a conservative patriot, and Lou Dobbs, who is campaigning to have U.S. laws enforced against illegals and the employers who illegally hire them, favor expanding governmental power? at the expense of individual liberty?

Wow....what an accusation. Please link to your sources to back up your claims.


151 posted on 01/16/2008 10:33:18 AM PST by nicmarlo (I hereby declare my support for Duncan Hunter. 1/10/08; late to the party, but I have arrived!)
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To: nicmarlo

We’re talking trade and the economy, not illegal immigration. Please stay focused.


152 posted on 01/16/2008 10:36:06 AM PST by 1rudeboy
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To: 1rudeboy
I don't understand how globalists can call themselves conservatives and hang out at FReepers?

But the numbers just kinda speak for themselves don't they?

I also wonder why they fight so hard here to rationalize their positions????

153 posted on 01/16/2008 10:38:08 AM PST by Halgr (Once a Marine, always a Marine - Semper Fi)
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To: nicmarlo
Sorry if it upsets you that I posted from two sides of the spectrum and they came to the same conclusions.

The only thing sorry is your lame attempt at trying to explain it away.

All it does is solidify the concerns about globalistic goals

There's that word again. It's seems to be a very convenient term for you. You can use it pejoratively without ever having to define what is means. Convenient indeed.

But your opinion I take with a grain of salt.

Other than borders what is Lou right about? Be specific.

154 posted on 01/16/2008 10:38:11 AM PST by Mase (Save me from the people who would save me from myself!)
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To: Fan of Fiat
If Mase works for a company with a history of outsourcing to China, wouldn't protectionism be in his personal best interest? His job could be next? I respect that he doesn't demand that I pay higher prices to protect HIS job.

Depends on how high the food chain he is within that company. Also he may be the one doing the outsourcing. He won't outsource his own job.

155 posted on 01/16/2008 10:39:52 AM PST by am452 (Globalist: Converting the American people to the Democrat party since 1992)
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To: Halgr

I wonder how “anti” globalists don’t know that manufacturing jobs have been declining worldwide for more than 30 years. You’d think FReepers would read a book now and then.


156 posted on 01/16/2008 10:40:03 AM PST by 1rudeboy
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To: Mase
Globalistic goals that I never defined? Oh, those goals I posted earlier, from an Eagle Forum article? Did you want a DIFFERENT definition than the one I posted? Sorry, not going to do that.

I agree with the definition I earlier posted, just fine.

Sorry if it upsets you that I posted from two sides of the spectrum and they came to the same conclusions.

157 posted on 01/16/2008 10:40:55 AM PST by nicmarlo (I hereby declare my support for Duncan Hunter. 1/10/08; late to the party, but I have arrived!)
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To: am452

Say, help remind me . . . weren’t you the guy supporting the Chinese military machine because to do otherwise was inconvenient and more expensive?


158 posted on 01/16/2008 10:41:30 AM PST by 1rudeboy
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To: 1rudeboy

Illegals and trade are interlinked and intertwined.

Sorry if that makes you uncomfortable or exposes your inability to focus.


159 posted on 01/16/2008 10:42:23 AM PST by nicmarlo (I hereby declare my support for Duncan Hunter. 1/10/08; late to the party, but I have arrived!)
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To: am452
Mase works for a company that has 2 plants in China. No bias there. ROTFLMAO.

Three plants in China actually, and 25 others around the globe. We have to go where our customers go. It's just another reality of running a large business. Something, no doubt, you know nothing about.

It's been pointed out by many of your opponents on these threads that when someone doesn't have the intellectual wherewithal to support their argument, or disprove the assertions of their opponents, they resort to questioning the motives of their opponents. Well done.

160 posted on 01/16/2008 10:44:42 AM PST by Mase (Save me from the people who would save me from myself!)
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