Global free market: Pro or Con?

Question

When Ross Perot ran for president, he said the sucking sound you'd hear if NAFTA was adopted would be US jobs leaving the country. His prediction seemed correct, yet the USA continues to expand free trade agreements.
Are we better off after more than a decade of free trade? Are you for or against continued free trade?

Answer 1

The global Free Market is a myth. It's used by Multi-National corporations to skirt the law... nothing more. There's nothing free about it, countries who protect their economies with Tariffs (Japan, Sweden, Germany) do well and flourish, while those who don't (The US, and all the 3rd world countries) fall under such a system.
It's misnamed. What it is is a lawless market.

Answer 2

I am doing quite well, my sons are doing quite well. Unemployment is at record lows. Ross Perot said a lot of things that "seemed correct" to some people. However, the facts do not support this line of thinking.

There are certain manufacturing jobs that are simply not do-able in America for many reasons. One of these reasons is the high minimum wage. Congress may enjoy mandating higher and higher wage increases but part of the result is that labor becomes too expensive to manufacture things and sell them at a price anyone is willing to pay.

One of the few natural resources many third world countries have is a cheap labor pool. The result of global trade is employment for the unskilled poor in third world countries. In America the result is low priced goods and as has been demonstrated, changing of jobs but not unemployment. This is the progress and the way to bring the rest of the world out of the dark ages.

As these other countries embrace Capitalism more and more you will gradually see an important thing created. That thing is a large and powerful middle class. Large middle class people are a product of Capitalism. You will not find middle class people in socialist or communist countries. There you will always find only a small, wealthy ruling class and abject poverty.

We are in an ever changing world. Do not fear change. We are the United States of America and we can compete with anyone. We keep raising the bar. Do not side with the buggy-whip maker types as they rail against the automobile. They, too, lamented the loss of demand for their skill. However, America did just fine.

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Answer 3

Global Free market is a good concept. The European Union was able to achieved this within its sphere. However, when USA products are exported in any countries within the EU, a protectionist tariff is imposed. But products exported from one country to another country within the EU no tariff is imposed, this is called free trade, though, it is not global yet, we can glimpse what this is all about. Another country that has an open market is Singapore, no tariff are imposed on imported product in their country. By the way they are one of the leading economies in South East Asia. Global free market will only work if the protectionist attitude of business, agricultural, manufacturing blocks will change by facing the challanges of a free market head on. Our automobile industry took a nose dive because of the Protectionist attitude of European and Asian countries. Imagine being imposed a tariff equivalent to 75% of the original cost plus shipping and handling cost the price of the Product becomes restrictive to the citizen of the said country and would therefore opt to buy cars that are cheaper.

It will take additional investment on production efficiency, in terms of quantity and quality for our corporation to be able to compete. If market barriers will all be removed, the prices of American products will no longer be restrictive to foreign buyers, then more production will be required, more production means more jobs.

Answer 4

I am totally against a "free market". The middle class is being eliminated. Ross Perot was right. "Free trade" allows all jobs to flow to the least common denominator in terms of wages and benefits. The US is the only industrialized country that shares a common border with a third world county. We have lost millions of good paying jobs.

Answer 5

over production of demerit goods. Such as alcohol or cigarettes. Negative externalities to health and welfare of society are not considered, so causing welfare loss. This can be showing in a negative externalities diagram. Also there's under provision of merit goods, such as education or health care. So positive externalities of them are ignored. This will cause welfare loss to and so a market failure.. You get my drift. Furthermore there's no provision of public goods due to the free rider problem so more welfare loss. For example street lamps, if they are non excludable and non rivalrous, no one will buy them as they will be waiting for others to do so. So no demand and so no provision. So basically in short the free market economy sometimes fails to allocate resources efficiently which causes market failure. This is some short points tht can be expanded further but other things to consider are labour market problems or fluctuating prices in commodity or agriculture markets. Hope this helps :)

Answer 6

Con. Limited global trade can be useful for giving goods that aren't easily accessible, and can stimulate the economy. But sheer competition pressure forces governments to turn blind eyes to their own people and their rights.
For this reason, it tends to make people angry and in turn turn a blind eye - or even help - those who want vengeance. This anger is a main drive in fueling terrorism.

I say keep foreign trade in clearly defined limits. Absolutely no trade and unkempt free trade are both dangerous.

Answer 7

Opposed. The first person has it right. It is a myth, it only serves the interests of big money and never of ordinary people not in your country not here and not in the developing world.

How is it free that the American market or our market is flooded with cheap goods that are cheap because they depend on outright slave labor or other forms of oppression that we would never tolerate? What's free about that?

Again the only one winning is big money

Answer 8

Against. you see how many jobs have gone overseas.