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US trade deficits.

PostPosted: Mon Mar 26, 2007 6:01 am
by spithray
I just read this article about good old Bush. Admittedly the link to Enron is fairly tenuous but, either way, it just shows how he's been talking crap about jobs lost to changes in the trade balance for several years.

PostPosted: Mon Mar 26, 2007 7:26 am
by Yogi
Free trade is a necessary evil when you consider the alternatives. Discounting the effects on domestic employment for a moment, the cost of most consumer goods would be out of reach for the average person if we did not have the scale of imports that we do. Many companies would go out of business because people could not afford to pay for goods manufactured domestically. Very few Americans would own cell phones if we could not import them is just one example.

While I think Bush is an imbecile at economics, at least part of the problem is that the agreements are not enforced as written. Many trade partners restrict the number of imports from here even though there is no tariff on goods that are imported. That policy severely limits our access to foreign markets.

Free trade works well when enforced properly. I only need point to the EU as an example of success when administered properly. We don't export as much to the EU as we would like, but that is primarily due to consumer preference over there and not the way agreements are enforced, or not.