Then why is Boeing shipping manufacturing to China? And why is JDSUniphase shipping fabs to China?It is an economic fact that free trade benefits the general welfare. This is not a normative question. With free trade, the gain in value for consumers will always be greater than the loss in value to producers. It is a mathematical certainty. Any undergraduate-level Microeconomics book will show you the graphs.
Even if those consumers now have lower paying service sector jobs? Those econ books were pretty convincing back when regurgitation assured an A grade, but now that reality has set in it seems to be mostly theory.I fail to see how we give up sovereignty by lowering our tariffs. Please explain how this happens.
When we lower tarrifs even though we run a trade deficit, we are letting other countries determine our future. I hope you remember what oil cartels did to us in the 70's. Free trade is also done in large part through the WTO, which often crosses the line by determining what our economic policies should be. By the same token, we are trying to tell other economies what to do, which is really none of our business.As for other nations, even if they don't accept free trade, we will still benefit when we lower our own tariffs.
Please explain how this happens.Most of those cheap Japanese cars are produced in the U.S. now.
And guess why that is.But at any rate, the point isn't that prices get cheaper over time with free trade (no one would want deflation anyway). The point is that they are cheaper at any given moment with free trade than they would be without it.
That sounds like a Jedi mind trick.That is extra money in the consumer's pocket to buy even more goods. And the extra domestic resources no longer devoted to car production will be allocated by the market to a usage that grants greater wealth to society.
What?
General welfare and been counting evaluation are two VERY different things. I will give you example:
Imagine the society consisting of two families - one making 100K per year (doing some advanced staff) and second making 30K per year (doing some primitive staff). Then you introduce free market/free trade reform. As a result the more afluent family gains 30K and poorer family has to go by with 10K less. The total goes 20K up - and the whole economy goes up from 130K to 150K.
This is a huge gain from been counter point of view and a decline in general welfare as quality of life of richer people went up a little (or maybe not as they need to pay more for various side effects) while for the poorer people it is a disaster. And in the long run the income of the richer might decline as well as a result.
It is an economic fact that free trade benefits the general welfare. This is not a normative question. With free trade, the gain in value for consumers will always be greater than the loss in value to producers. It is a mathematical certainty. Any undergraduate-level Microeconomics book will show you the graphs.
General welfare and been counting eveluation are two VERY different things. I will give you example:
Imagine the society consisting of two families - one making 100K per year (doing some advanced staff) and second making 30K per year (doing some primitive staff). Then you introduce free market/free trade reform. As a result the more afluent family gains 30K and poorer family has to go by with 10K less. The total goes 20K up - and the whole economy goes up from 130K to 150K.
This is a huge gain from been counter point of view and a decline in general welfare as quality of life of richer people went up a little (or maybe not as they need to pay more for verious side effects) while for the poorer people it is a disaster.