Tuesday, February 19, 2008

Free Trade

Let's consider this idea that totally free trade is "crushing" the little guy. If you believe that, then you can not believe that "a rising tide raises all boats." Protectionist policy that keeps a non-competitive factory operational also keeps the tide from rising. Thereby keeping all boats (including that of laid off factory workers) from rising. If ChinaFactory can produce a good for half the cost of USFactory and the government keeps USFactory afloat somehow, then American citizens loose money. There's no way around it, those goods are produced and bought at higher cost, and you can bet that the Chinese didn't just send us money to offset our loss for not buying from them. I'm describing the breakdown of market capitalism. If you don't think that free market capitalism is the best system yet devised my man to make efficient use of our resources, then I can understand being against completely free trade. But what alternative system do you want?
The conservative/libertarian view isn't "tough nouggies" to the factory worker who is laid off because China devalues its currency (not that I know they do, I'm just willing to accept the premise for now). The free trade argument is that while there will be people who are disadvantaged in the short term (as with any system), _everyone_ will be advantaged in the long term. Everyone who is willing to work for it, that is. If that factory worker is unwilling to learn a new skill, then he/she may well have to accept a lower standard of living. This is their choice. The theme is personal responsibility. So long as everyone is willing to take personal responsibility and learn new skills as required to keep up with new technologies and a dynamic world, free trade is best for everyone.

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