Sunday, April 03, 2016

Free trade

Krugman's article here touches many areas that pushes people's buttons - unions, free trade, social safety nets, and Trump.  What it does not talk about and something that is outside the economist's domain  - is social order, break down of communities, and widespread anger and despair due to loss of jobs due to trade.  Free trade is not without social implications. If you are not good at anything - then you would start buying everything from the rest of the world and run huge deficits. If you don't have anything to export - then free trade will come and bite you. It will cause mass unemployment and social unrest. The same champions for free trade will turn and speak against it. So what is the problem. It is because corporate America is not investing enough in productivity and getting better at producing goods than the rest of the world. If the private sector is not getting involved and not doing what is necessary for the long term good of the country - then government should get involved - not in inefficient programs but mandating the private sector to do their share for the greater good. If mass consumers cant afford because they have no jobs - the companies wont have anything to sell or reason to serve.  
 
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