Monday, January 23, 2017

Free Trade/Movement vs Protectionism in a Global Society

There are many reasons for people who feel free trade agreements like the approved North America Free Trade Agreement (N.A.F.T.A.) or the recently deceased (from the United States Perspective) Trans Pacific Partnership (T.P.P.) are bad for them and the country in general. Jobs going to countries with cheaper wages is the main one. Products like domestic automobiles not being manufactured at the rates last seen in the 1970's is another.

While Free Trade and Movement does cause adjustments and pain in some circumstances, protectionism in an increasingly global economy is not the answer. While perhaps providing a short term solution, it is a foolish strategy in the long term that will not bring long term economic and social benefits to the country as a whole. Protectionist policies helped bring on the Depression of the 1930s. 

What our leaders around the world need to do is implement policies that invest in assisting people and families displaced by free trade agreements and train/relocate them into fields/regions that will provide well paying positions and dignity. Both parties have been remiss in this and need to do better. Immigration policies also need to be reformed. Illegal Immigration should be addressed and attended to. MOST PEOPLE, even most  legal immigrants, believes illegal immigration should not  be allowed. However, legal immigration opportunities should be encouraged for people that can contribute to the American Dream. If strategies like these were adopted, would Brexit have squeaked by? Would Donald Trump have eked out an electoral college victory despite losing the popular vote to Hillary Clinton by close to three million votes and ten million votes when you include the other candidates? Would radical populist movements in Europe like Len Pen in France or the Northern League in Italy thrive and threaten their nations. 

Free Trade also enables the countries of the world to become increasingly integrated and interdependent with one another where goods and information are transported/transmitted at a more rapid rate. Legal Immigration helps reinvigorate societies. These should be encouraged as long as public policy has measures in place to help those adversely affected by them and adjust agreements like NAFTA that are over 20 years old and may need tweaking. Abandoning measures like TPP only makes potential adversaries like China (whose bank are tenants at Trump Tower) more powerful because they will move in and fill the void of what we leave behind.

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