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Sheriff Gonna Getcha · 02-24-2008, 10:52 AM

Should the United States fight global free trade, or embrace it?

In my opinion, fighting free trade is an exercise in futility. This is a quick and dirty run-down of my take on the issue, but take it for what it's worth.

If the workers in say Indonesia are willing to produce a widget for $1 and the workers in the U.S. are willing to produce the widget for $30, guess where the companies are going to set up their widget manufacturing facilities? If the U.S. government tries to persuade companies to manufacture the widgets in the United States through a variety of tax incentives etc., guess who is footing the bill for those tax incentives? The U.S. taxpayers, who will be subsidizing the production of goods that will be sold back to those taxpayers at less than ideal prices.

Moreover, the U.S. government can't stop foreign companies from manufacturing the widgets and exporting them to the U.S., unless they plan to erect various trade barriers. Guess who is hurt by trade barriers? The average consumer, who has to pay more for goods because there is less competition and/or there are more costs to companies exporting goods to the U.S. Trade barriers such as tariffs sound good when used against foreign companies, but they work both ways and hurt consumers by reducing product options and increasing prices to consumers.

I understand that some people have legitimate problems with U.S. companies going abroad and exploiting workers. First, however, let me say what is not "exploitation." It is not per se exploitation to employ people to engage in somewhat unsafe labor for $1 per hour. Everything, including cash money, is relative. $1 is a small coffee at McDonalds to us, but can feed a large family for a day in many places. Second, if a job doesn't pay well and is unsafe in the view of a foreign laborer, that foreign laborer can take that into account and either not take the job or quit. The fact is that jobs with U.S. companies abroad are usually highly coveted. It's easy to say "those foreign workers shouldn't take those unsafe and low paying jobs with U.S. companies" when you live in Santa Barbara and not so easy when you live in a poor, rural province in China.

02-24-2008, 10:52 AM	#1
Sheriff Gonna Getcha Franchise Player Join Date: Feb 2004 Age: 46 Posts: 8,317	Free Trade: Fight It, or Embrace It Should the United States fight global free trade, or embrace it? In my opinion, fighting free trade is an exercise in futility. This is a quick and dirty run-down of my take on the issue, but take it for what it's worth. If the workers in say Indonesia are willing to produce a widget for $1 and the workers in the U.S. are willing to produce the widget for $30, guess where the companies are going to set up their widget manufacturing facilities? If the U.S. government tries to persuade companies to manufacture the widgets in the United States through a variety of tax incentives etc., guess who is footing the bill for those tax incentives? The U.S. taxpayers, who will be subsidizing the production of goods that will be sold back to those taxpayers at less than ideal prices. Moreover, the U.S. government can't stop foreign companies from manufacturing the widgets and exporting them to the U.S., unless they plan to erect various trade barriers. Guess who is hurt by trade barriers? The average consumer, who has to pay more for goods because there is less competition and/or there are more costs to companies exporting goods to the U.S. Trade barriers such as tariffs sound good when used against foreign companies, but they work both ways and hurt consumers by reducing product options and increasing prices to consumers. I understand that some people have legitimate problems with U.S. companies going abroad and exploiting workers. First, however, let me say what is not "exploitation." It is not per se exploitation to employ people to engage in somewhat unsafe labor for $1 per hour. Everything, including cash money, is relative. $1 is a small coffee at McDonalds to us, but can feed a large family for a day in many places. Second, if a job doesn't pay well and is unsafe in the view of a foreign laborer, that foreign laborer can take that into account and either not take the job or quit. The fact is that jobs with U.S. companies abroad are usually highly coveted. It's easy to say "those foreign workers shouldn't take those unsafe and low paying jobs with U.S. companies" when you live in Santa Barbara and not so easy when you live in a poor, rural province in China.