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Originally Posted by Eomer  See, this is what I don't get. Here we have someone who is in favor of the "Free Market." He even used capitals! But on the other hand, free trade is bad. Wait, I thought a free market was good? Is free trade not part of a free market? |
Free Trade isn't bad at all. Jefferson and others advocated trade over interventionist policy time and time again. The problem with our current trade agreements is we import more than we export by a gross margin at the same time exporting more and more of our jobs overseas/down south while not creating new ones to take their place. Those that do find replacements do not find them at competitive wages because the influx of illegal immigrants into the US have forced salaries across the board down to artificially low levels.
So who is winning out of all of this in the end? It's not the average American citizen. It's not even the average American business owner. The big winners are large corporate businesses who already have distinct advantages (corporate welfare comes to mind for an example).
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As far as the whole NAFTA superhighway thing goes, I really don't see the problem even if it is true (which I doubt, because last map I saw of it showed it going straight into.... Manitoba??). Canada does not have some sort of artificial advantage over the US for manufacturing, we're equal competitors. Both our economies have benefited greatly from free trade with each other. Mexico, well, there's lots of arguments that could be made for and against free trade with Mexico, but I think most times they'll miss the most important point: 80 million or so consumers at comparable levels of wealth to the Americans/Canadians would be good for EVERYONE involved. Wealth generation is not a zero sum game. Having 450 million wealthy consumers in North America to trade with is better than having 350.
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Here is the current problem with NAFTA Superhighway concept. As it has been reported, it throws national security of all the countries wide open because there will be little to no road checks on the highway. Fast transportation of goods is a great thing, don't get me wrong. However, would you feel confident having a massive roadway straight from Mexico pouring into both the US and Canada that doesn't have to stop for checks at the borders to make sure they're not smuggling immigrants in let alone possible biological/chemical/nuclear weaponry? Knowing how "trustworthy" the Mexican police are to begin with, I can see MASSIVE problems right off the bat there.
And you're right, Canada has no artificial advantage over the US when it comes to manufacturing. Our problem in this country is we as a nation have lost over 3.5 million manufacturing jobs since NAFTA versus the creation of a little under 500k. This is part of the reason why our trade deficit is the way it is; we produce nothing of value to really export to other countries to sell.
Let's look at other areas of NAFTA that are of major concern. Chapter 11 that allows corporations to sue the shit out the US, Canadian and Mexican governments if those government bodies does something that adversely affects their investments. Say one company invests heavily in a substance only later to be found out that not only is it bad for you but can cause serious genetic damage. Said substance ends up being banned by all three governments for further use in products and all existing products have to be recalled. This company can sue all three governments and under the provisions in Chapter 11 win substantial amounts in payments from each government because of this one ruling. Guess where all that money will be coming from?
Last point on this and then I'm leaving it alone. Milton Friedman - probably one of the most respected and influential economists of the 20th century - put it best that this isn't Free Trade but government managed trade. Simply put, when government gets involved in creates a level of bureaucracy in the trade between nations that becomes susceptible to manipulation by parties that do not have genuine interests in maintaining market balance but undermine the market and artificially manipulate it to their advantage. This comes from your lobbyist groups, corporate benefactors and contributors, etc. where they - the lobbyist group, corporations and the politicians - are the only ones that benefit. Even the playing field and force everyone to compete is when everyone gets to enjoy the benefits and the possibilities that Free Trade can bring.
