Re: \"understanding of economics\"
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So "understanding economics" means that the best thing for the US is to do what is worst for its workers (ie, let them try to compete against countries that trash their environment and have absolutely no worker's rights)?
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Wow. Well, I guess I have to begin somewhere. First off, understanding economics means, in the way I used it in regard to Cyrus, understanding why protectionism is bad on the whole. Certainly for a few people, protectionism helps them slightly...it will give them slightly more time before they are let go from a job they are being overpaid for. But the net effects of protectionism on the country are devastating - basically, to help those few workers keep their jobs TEMPORARILY, a number of bad things happen.
First, the price of goods goes up for everyone, depending on what goods have tariffs placed upon them. Let's start with, say, textiles from China. Say we were to place a 28% tariffs on all goods from China (something that was seriously proposed by Chuck Schumer and has significant support in the Congress.) The few thousand people working at manufacturing textiles would be relieved of the stress of changing their employment. In exchange, every one of the 250 million people in the United States would have to pay 28% MORE!!!! for their clothes. The standard of living of EVERY SINGLE PERSON IN THE NATION is reduced. Now, do this once, with one industry...and the effect isn't large...but the benefits were smaller. Do it with ten...then you start seeing noticeable effects. People on the poverty line suddenly fall below it because they have to pay $55 dollars for jeans instead of $40, $25 dollars for the new toy their kid wants instead of $20, and so on and so forth. Oh, the rich can afford protectionism, sure. But the poor can't.
Oh, and how about world poverty? Obviously it's a tragedy to put the third world through that, no? I mean, we're so much better off. But suddenly that Chinese factory worker who was making $2000 a year now makes only $1200 - because the factory owners can't sell as many goods, they aren't bringing in as much revenue, so they can't afford any more workers. The more protectionism we use, the more poverty we create in other countries.
But they are foreigners. They don't matter.
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What if, just what if, this belief in liberal economics just ISN'T the best thing right now for the US working class?
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On the contrary. I just established how protectionism pushes prices up and how free trade brings them down. The US working class would be able to get significantly more out of their incomes if we abolished all tariffs and subsidies.
That's all for now.
Will
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