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First, the relationships are voluntary. Second, the relationships are mutually beneficial else one party would end them. Lastly, free trade doesn’t create a w
by valuearb 6y ago
First, the relationships are voluntary. Second, the relationships are mutually beneficial else one party would end them.
Lastly, free trade doesn’t create a wealth transfer, it creates new wealth for both parties. Chinese assembling iPhones lifted a huge number of Chinese laborers out of rural poverty working in much more physically demanding and dangerous jobs at a fraction of the pay. A significant part of Apples market share, market cap, and tens of thousands of US iOS developer jobs are owed to cheaper iPhones enabled by Chinese labor.
The only time “wealth transfer” occurs is when free trade breaks down a monopoly. Like if we ended sugar tariffs, the wealth would be transferred from certain politically connected families in Florida, to US consumers and foreign workers.