Would open borders and free markets result in prosperity?

Question

I've heard that true globlisation allows for the absolute free movement of goods, labor, and capital. I've also heard that labor mobility would do more to alleviate global poverty in a year than foreign aid over five years. Is this true? Why hasn't it happened yet?

Answer 1

Most probably it would result in relative prosperity for many of the worlds poorest people and, like you say, alleviate global poverty. The problem is that lots and lots of people in our part of the world have jobs that could very easily be replaced by some poor person who'd be willing to do the same job for 5% or less, of what the "rich" person is being paid. That, of course, would be devastating for many, many people here in the US and in rich countries elsewhere. Which is why you always see the labor unions fight for tariffs and protectionism. Most all of the labor union members live sheltered lives and would never be able to compete in a open market for labor. The same is also true for most all farmers in rich countries, that are very heavily subsidized.

Answer 2

NO. Unless you define who prospers and who doesn't. Sure, the poor from any country going to a wealthy prosperous country will benefit, no matter what the pay is; because some pay is better than no pay. While that creates prosperity for the poorest, the middle class suffers because their pay gets cut because of competition from the poorest.

What is ideal is for governments to be moderately uncorrputed such that economic factors can operate freely in their countries. In most countries with natural resources, those natural economic factors will create wealth and jobs.

Answer 3

By itself will not create prosperity automatically.The country management must utilize free market economy for the prosperity of the country with best country management policies and practices.