06-04-2015, 01:58 AM
With computers and automation killing a lot of jobs, I'm not sure the same assumptions/dynamics espousing the advantages of trade and specialization apply. There simply are too many people, globally, and not enough jobs.
If the US cares about its standard of living, it will do something about the redistribution of that living standard to places like India, China, etc.. There's quite simply not enough jobs and wealth to share. Theory would say as everyone becomes wealthier, you just have more goods being produced and traded...but that assumes there aren't limits on resources (but outside of energy, I'm not sure there is).
Problem is the exchange of benefits isn't balanced in timing. You ship jobs over to India or China, but it will take decades before their consumers are strong enough to be shipping jobs back here, and buying a lot of our goods. So free trade agreements need to manage that timing imbalance.
If the US cares about its standard of living, it will do something about the redistribution of that living standard to places like India, China, etc.. There's quite simply not enough jobs and wealth to share. Theory would say as everyone becomes wealthier, you just have more goods being produced and traded...but that assumes there aren't limits on resources (but outside of energy, I'm not sure there is).
Problem is the exchange of benefits isn't balanced in timing. You ship jobs over to India or China, but it will take decades before their consumers are strong enough to be shipping jobs back here, and buying a lot of our goods. So free trade agreements need to manage that timing imbalance.
