3 ms·
I've never heard a good argument for why we should allow cheap foreign t-shirts into the country but not cheap foreign workers. Is it even a good idea to allow
by TheMagicHorsey 11y ago
I've never heard a good argument for why we should allow cheap foreign t-shirts into the country but not cheap foreign workers. Is it even a good idea to allow in cheap lumber, oil, rubber, tea ... if we can't allow in cheap labor? What arguments apply to the former, but not to the latter?
In terms of inputs to generate national wealth, there is not much technical distinction between cheap raw materials and cheap labor--although possibly there is an effect on human beings.
Cato Institute's studies would suggest that immigration--especially H1B immigration has not had an appreciable effect on American wages.
But lets say that Cato is wrong .... even so ... the problem that must be solved is making sure that the gains from cheap inputs for growth are spread across everyone, and not concentrated only amongst a few. We should discuss things basic income. Not cutting off cheap inputs. Making more for less is not inherently bad.
Ultimately tariffs and labor controls are all along a sliding scale towards closed borders. The ones that make the most noise are insulated the most from external competition. But the insulation is not good for the rest of consumers in America ... only for the noise makers. And even for them, I don't think its good ... as auto unions in Detroit will tell you ... eventually reality catches up no matter how much Washington does to insulate you from the world.
I don't think a country is better off with closed borders. Various countries have tried that in history (Tokugawa Japan, China before the Opium wars, etc.) I think if everyone is trading and competing, and you isolate yourself behind tall walls, the world leaves you behind.
On a small scale that happened to our auto industry. Too much insulation from hot competition is bad in the long run. You might wake up from your Rip Van Winkle nap and find that decades later your technology and society are woefully outdated.