The big lie about free trade

NAFTA increased wages in all three countries.

What were the welfare e¤ects of NAFTA? Real wages increased in all NAFTA countries and Mexico had the largest gains. Almost 90% of the welfare gains and half of the increase in real wages for Mexico can be attributed to having access to cheaper intermediate goods. Canada and the United States gained relatively more than Mexico from liberalizing against the rest of the world.

According to the authors, NAFTA led to a 3.9% gain in real wages in Mexico, 1.1% in Canada and 1.0% in the US. All three countries also saw increased levels of trade because of NAFTA.


http://faculty.som.yale.edu/lorenzocaliendo/ETWENAFTA042511.pdf
 
That's why it's called "Free Trade" and not "Fair Trade".

Who wants fair trade? I want politicians to be looking out for Americans.

Imposing tariffs on american consumers isn't "looking out for them." It's screwing them.

Putting tariffs on foreign goods is looking out for America.

500px-US_Trade_Balance_1980_2011.svg.png
 
This article summarizes the economic payoff to the United States from its postwar trade opening and estimates the potential future gains from more opening going forward. To quantify these gains, we survey different methodologies and estimates. We find that trade opening since World War II has added between $800 billion to $1.4 trillion to the US economy, or about $7,000 to $13,000 per household. More speculative estimates of the potential additional gains from removing the rest of US trade barriers range from $400 billion to $1.3 trillion, or about $4,000 to $12,000 per household. Since trade opening permanently raises national income, these gains are enjoyed annually. Trade opening inevitably entails adjustment costs. We estimate that the lifetime cost of all worker dislocations that have been triggered by expanded trade in the United States could be as high as $54 billion, although probably less. The permanent gains from past and potential liberalization easily swamp the modest sums necessary to alleviate the temporary pains of adjustment. In the future as in the past, free trade can significantly raise income - and quality of life - in America.

The Payoff to America from Globalisation
 
The implementation of NAFTA benefited the United States by increasing competition in product and resource markets, as well as by lowering the prices of many commodities to U.S. consumers. Because the U.S. economy is so much larger than Mexico’s, however, U.S. gains from NAFTA as a proportion of its GDP were much smaller. Canada was the least affected by NAFTA because Canada had already negotiated a free trade agreement with the United States in 1988, and so most of its economic effects had already taken place by the time NAFTA came into effect in 1994.

http://cafehayek.typepad.com/hayek/2007/03/economic_conseq.html
 
According to our projections, a generalized 10 percent hike against emerging Asia improves the US current account balance as a share of GDP by a mere 0.1 percentage point. The effect disappears after about two years, and in the absence of further adjustment in net saving, it may even revert sign. Similar effects hold in the rest of the world. Moreover, there are unintended third-country effects on ‘bystander’ countries, opening the likely possibility that any such actions would be matched by countervailing trade policy actions in partner countries, undermining the initial gains and leaving the world worse off than before. And the world contraction would be even more substantial if protectionist pressures took the form of a backlash against competition-friendly reforms in import-competing sectors. At the end of the day, a protectionist surge would lower global growth leaving global imbalances unresolved.

http://www.newyorkfed.org/research/staff_reports/sr268.pdf
 
NAFTA increased wages in all three countries.

What were the welfare e¤ects of NAFTA? Real wages increased in all NAFTA countries and Mexico had the largest gains. Almost 90% of the welfare gains and half of the increase in real wages for Mexico can be attributed to having access to cheaper intermediate goods. Canada and the United States gained relatively more than Mexico from liberalizing against the rest of the world.

According to the authors, NAFTA led to a 3.9% gain in real wages in Mexico, 1.1% in Canada and 1.0% in the US. All three countries also saw increased levels of trade because of NAFTA.


http://faculty.som.yale.edu/lorenzocaliendo/ETWENAFTA042511.pdf
Uh-huh...The wage increases in Mexico were so bountiful that millions of Mexicans flooded "al norte" to escape all that prosperity! :rolleyes:
 
NAFTA increased wages in all three countries.

What were the welfare e¤ects of NAFTA? Real wages increased in all NAFTA countries and Mexico had the largest gains. Almost 90% of the welfare gains and half of the increase in real wages for Mexico can be attributed to having access to cheaper intermediate goods. Canada and the United States gained relatively more than Mexico from liberalizing against the rest of the world.

According to the authors, NAFTA led to a 3.9% gain in real wages in Mexico, 1.1% in Canada and 1.0% in the US. All three countries also saw increased levels of trade because of NAFTA.


http://faculty.som.yale.edu/lorenzocaliendo/ETWENAFTA042511.pdf
Uh-huh...The wage increases in Mexico were so bountiful that millions of Mexicans flooded "al norte" to escape all that prosperity! :rolleyes:

Is that the GOP plan? Make things so horrible in America that Mexicans will stay home.
 
Putting tariffs on foreign goods is looking out for America.

500px-US_Trade_Balance_1980_2011.svg.png

Wrong, turd. American consumers pay tariffs. How does paying more for the same stuff benefit them?

Prices didn't go down, what went up was transnational corporation profit.

Of course they went down. Have you been to Walmart lately? Turds like you are always whining that Walmart is running all the other retail stores out of town. How do you think they do that, with high prices?
 

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