06.09.11
Distaste for free trade — economic functionaries venture their opinion on what to do
In 2011, free trade to most Americans — anyone in my demographic — means you’re going to be taking it in the slats.
The chemistry, physics and energy of making a Les Paul guitar in China, as opposed to Nashville, has not changed. The skills and talents of Chinese or other foreign workers are not better than average Americans for the 21st century, as some free-traders argue. The difference with regards to the Les Paul is that Chinese labor is much cheaper, the cost of living is much less there, and the Chinese government — in effect — subsidizes lots of overhead and energy costs because there is no regulation.
Two economic adviser functionaries, formerly for the GWB and Clinton administrations, proffer an opinion piece in today’s New York Times.
It’s purpose is to aid in breaking an impasse on pending free trade agreements with Colombia, Panama and South Korea.
Matthew J. Slaughter and Robert Z. Lawrence write that free trade must be increased along with a social safety net for American workers fucked over by it. It’s easy to see the first happening. But not the latter because it needs to be packaged as unemployment insurance expansion. And there’s no societal generosity at all in the US now.
Three principles guide our proposal. First, trade is indeed worth it for America … [Wow. Followed by dollar amount originally American but now multinational outsourced companies have apparently brought in.]
Second, trade is not worth it for every individual American. Trade creates unemployment for some and wage losses for others; its gains do not directly accrue to every worker and community. Indeed, there has been a steep drop in public support for trade; a recent Wall Street Journal/NBC poll found that only 17 percent of respondents said free-trade deals have helped America.
Third, Trade Adjustment Assistance, created in 1962 to supplement unemployment insurance, cannot adequately help displaced workers.
Our proposal to resolve the trade impasse: more trade and more aid.
Voter support for engagement with the world economy is strongly linked to labor-market performance. If American workers continue to fear change, their support for free trade will not return.
More trade and more aid. A pretty wan exhortation.
I can’t see any return to support for free trade in my lifetime. Note — having to buy the products brought in by free trade because there are no other options or choices is not the same as enthusiasm for it. (All readers who use iKit and mobile gadgets are excused from reading this.)
While it holds no appeal for teenagers and lovers of pop music, China Toilet Blooz continues to get a steady trickle of new listeners every month.
Foreign made fractured toilet seat as metaphor for US economy.
Chuck said,
June 9, 2011 at 7:04 pm
When it comes to the economy, I have this mental image of our leaders as a bunch of little old Southern belles sitting around on the veranda drinking mint juleps, tsk-tsk-ing about the whole economic affair. “Land’s sakes, I don’t know how those poor people can manage.”
There are certainly things that can be done. How about outlawing the export of raw logs?. Much of this timber comes out of our national forests, so it’s certainly under the government’s purview.
It might take a few thousand of those out-of-work millworkers off the welfare rolls.
It would be a start.