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> Trading with China is, for now, beneficial to EVERYONE No, it's beneficial from an idealized economic perspective for economies. Economics makes no guarante
by djokkataja 7y ago
> Trading with China is, for now, beneficial to EVERYONE
No, it's beneficial from an idealized economic perspective for economies.
Economics makes no guarantee that all individuals within an economy benefit economically benefit from free trade. And if you look at the actual average effect for US workers over the past few decades (period of opening trade with China), their purchasing power hasn't increased: https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/ https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us...
How can this be? "The economy" is still growing on average because the top 1% have been getting richer and richer. Also China devalued its currency to protect its own industry (https://www.investopedia.com/terms/b/beggarthyneighbor.asp https://www.investopedia.com/terms/b/beggarthyneighbor.asp). Not exactly "free trade"...
But coming back to this:
> every working individual should be able to learn new skills and ready to move to new industries if the current industry no longer provides enough jobs.
Yes, from an economic ideal perspective, working individuals "should" do that to maximize their own income. And in the US, people have been doing it for a while, leading to a drain of talented individuals from rural communities to urban areas and repeatedly disconnecting people from their friends and families as they chase economic opportunities around the country. Now everyone is lonely and depressed, there's a huge political divide between rural and urban areas, and, well, Trump happened.
So I don't think chasing the shiny economic ideals is necessarily going to lead where we want to go as a society.