I see quite a few posts condemning free trade on the belief that it costs us jobs. If a foreign country can produce a product, service, or commodity cheaper than we can, or one that is higher quality, then either we make changes or we can't compete. If we can't compete then those jobs are lost or reduced in number, and the affected employees will then have to find work elsewhere. But it doesn't really matter if the cheaper product, service, or commodity comes from the other side of the world or the other side of the street, people are going to buy what they want or need based on the lower price.
The problem begins when the industry that is being undercut by the foreigners goes to DC and gets some form of protectionism. When that happens, you the consumer cannot get the lower priced item, you end up paying more. Which means you got less to spend on other stuff. Which means your standard of living just went down. AND, since you can't buy as much other stuff, jobs will be lost for those things cuz demand drops for them. So, we saved some jobs via the protectionisn, but lost others in other industries.
AND - what do you think those foreign countries are going to do when the US applies some form of protectionism on their stuff? They're going to reciprocate, right? So now prices go up not just on the first thing but on other things. Downward spiral, suggest reading about the Smoot-Hawley bill that was passed back in the early 1930s. Didn't cause the depression, but it did add to the problem IMHO. Do we need to be creating more enemies around the world ?
Back in the 1980s, the steel industry was facing tough competition from foreign steel makers. So they went to Washington and cried for some form of protectionism and got it. Jobs were lost anyway, for whatever reasons, but the problem was with the many other companies who used steel to make other things. A lot more jobs were lost as a result of the protectionist policy towards steel than were saved. Most people focus only on the jobs lost by a specific company that moves ops to Mexico, or when a foreign company offers something cheaper than we can. But those jobs are going down the tubes anyway if we can't compete, unless you want to subsidize them for thousands of dollars more than they're worth.
The problem begins when the industry that is being undercut by the foreigners goes to DC and gets some form of protectionism. When that happens, you the consumer cannot get the lower priced item, you end up paying more. Which means you got less to spend on other stuff. Which means your standard of living just went down. AND, since you can't buy as much other stuff, jobs will be lost for those things cuz demand drops for them. So, we saved some jobs via the protectionisn, but lost others in other industries.
AND - what do you think those foreign countries are going to do when the US applies some form of protectionism on their stuff? They're going to reciprocate, right? So now prices go up not just on the first thing but on other things. Downward spiral, suggest reading about the Smoot-Hawley bill that was passed back in the early 1930s. Didn't cause the depression, but it did add to the problem IMHO. Do we need to be creating more enemies around the world ?
Back in the 1980s, the steel industry was facing tough competition from foreign steel makers. So they went to Washington and cried for some form of protectionism and got it. Jobs were lost anyway, for whatever reasons, but the problem was with the many other companies who used steel to make other things. A lot more jobs were lost as a result of the protectionist policy towards steel than were saved. Most people focus only on the jobs lost by a specific company that moves ops to Mexico, or when a foreign company offers something cheaper than we can. But those jobs are going down the tubes anyway if we can't compete, unless you want to subsidize them for thousands of dollars more than they're worth.
