ECONOMY: Free Trade

Almost everyone seems to either hate free trade (usually if you've lost a job due to outsourcing) or love free trade (usually if you own a huge business and are making tons of money). Why do we need free trade or why do we need to get rid of it?



There is no doubt that in the last 50 years, America, and the World have gone through a major revolution. Not, the information technology revolution, but the globalization revolution. Free trade is quickly becoming the norm and no longer the exception.

Why do we need free trade? Every person has the tendency to specialize in what he or she is best at. People good with math and bad with English will probably study and become part of a technical field because it comes natural to them. Nations are the same way. Nations good at growing cabbage will grow cabbage. Nations bad at growing cabbage will not waste their time with it. What if the nation that doesn�t grow cabbage, needs cabbage? What if instead of cabbage it is every kind of food that's involved?

The only way other nations can be helped and violence can be avoided is if we let them get the resources they need through free trade. If a nation can't get the resources it needs, it will either die out or attack another nation that has the resources it needs. Free trade is a barrier against war, first and foremost. There is no incentive to go to war if you already are receiving everything you need.

Why is free trade bad? If total free trade was adopted immediately then many workers would find themselves without jobs in a market that was booming. An upper class that was involved in the specialized industry a respective nation adopted would explode, almost overnight. But, people not involved in that industry would be without a profession. While this wouldn't be a problem for young people, for older people finding an entirely new profession is tough.

The Libertarian party is often inaccurately portrayed as a group that wants total and immediate deregulation of trade. This would not work because corporations would do what they are doing now... abusing the system. Currently, corporations hold so much control over Washington they are pushing free trade legislation through that only works in their favor. The problem with the developing state of free trade is that it benefits only politically favored nations and is dictated only by massive corporations. Also, many workers would be left out in the cold.

What Libertarians do support is legislation that helps to remove, first, all of the lobbyists that have crippled our government, and second, develop free trade policies that benefit all people and all nations equally. We need free trade for a prosperous and competitive America. Global free trade would help to lessen threats of war. But an immediate switch to free trade would cripple millions.

Free trade is crucial to our future. We must support it, but not in its current state.


[edit on 8/12/2004 by lockheed]

Life, Liberty, and the pursuit of happieness, is this what you believe free trade will provide? I am skeptical.

For one, free trade would more than likely cause a massive lowering in the standard of living for so many nations. Consider this: there are less jobs now than in past centuries, because more and more work is automated. This already has caused job loss without free trade. Add to that, leaking out production to cheaper countries....you have a recipe for disaster.

I think, that free trade should be 50/50. For instance, American companies sending jobs overseas should be taxed heavily for the finished product they bring back to America. Like, Fords made in Mexico should be taxed more than say, a foreign company's import car. Thus, if we are going to have free trade, we at least need to keep companies from going crazy and taking every advantage they can to stick it to the lower orders.

I must admit that Skadi has it right. The only way for true free trade to work is to standardize cost globally.
This means Labor, Taxes, Insurance, Cost of living ect. ect..
A great yet unachievable goal.
In a moral sense I want all americans to be gainfully employed. From a strictly business sense I would outsource everything I could get away with.
The question is.....Do you listen to your heart or your head?
It's a tough and very personal decision(especially if you are religious).
I'll have to pass on free trade as it currently stands. It has only hurt my fellow Americans and for that I can't support it.

You think free trade exists today? Ask the people employed by the softwood industry in British Columbia. I would think every voter would be behind this.

Ask my friends in the computer support industry......

Originally posted by Fry2
Ask my friends in the computer support industry......

And this work would be going where?

Originally posted by intrepid

Originally posted by Fry2
Ask my friends in the computer support industry......

And this work would be going where?

India, China, Singapore, amongst others. They sent my aunt's tech support job over to India.

One of my old jobs went to Mexico, another, to Thailand.