Thread: The ideology of "Free trade" is Killing America's Economy

Originally Posted by raymondo

As long as the US competes against a country where the average working wage rate is six and a half times lower ( adjusted ), the US is doomed

Comparative advantage says otherwise

For America to survive , it needs a radically new Trade Strategy .

Utter garbage based only on not understanding trade

You are right and don't ever gie in to stupidity.

The only thing that will level the playing field is tariffs. So easy!

Originally Posted by stevenswld

The only thing that will level the playing field is tariffs. So easy!

How successful was Smoot-Hawley?

Originally Posted by Reiver

This is drivel. For economies of scale to operate we only have to refer to monopolistic competition. We are therefore talking about any manufacturing product.

Monopolistic competition? You don't subscribe to the definition of a monopoly as something lacking competition? Looks like an oxymoron to me.

Originally Posted by fmw

Monopolistic competition? You don't subscribe to the definition of a monopoly as something lacking competition? Looks like an oxymoron to me.

Monopolistic competition refers to product heterogeneity such that, due to product loyalty, there will be price making power. Its quite distinct from monopoly

Capitalism will not work across world boundaries (countries) because one country has no concern for the good of mankind or the environment while the other does. The unconcerned countries allow children and poor people to work endless hours with no protections. Should this be rewarded? Until all countries abide by the same principles, the most caring will be defeated by the uncaring due to the money they save by treating human beings as cattle and the environment as a trash dump. Unless all contries abide by the same standards, only tariffs will level the playing field so the most responsible and caring will recieve the greater benefit instead of the worst. Tariffs will be a cost (tax) incurred by the uncaring for not caring.

I think we need import and export taxes on goods AND SERVICES (IE Foreign outsourcing)

Originally Posted by stevenswld

The only thing that will level the playing field is tariffs. So easy!

totally agree, and this has to apply to both goods and services

Originally Posted by FreshAir

I think we need import and export taxes on goods AND SERVICES (IE Foreign outsourcing)

And that would be an irrational result. How did Smoot-Hawley go?