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by ConfuciusSay
3787 days ago
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This paper shows how there's negative affects from free trade with China, and your conclusion is "oh it was negative with China, but all those other free trade deals were positive"? Sorry, but NAFTA was a massive job killer. Just ask anyone in Detroit. Also, the idea that China has no regulation on business is ridiculous. Obviously you've never worked there! |
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In economics, "free trade creates additional wealth for all involved" is closer to consensus among economists than is "the Earth is warming" is among climatologists. The paper [1] that the OP references does itself say that their conclusion is peculiar to the circumstances of China:
"While these results do not at all suggest that international trade is in the aggregate harmful to nations--indeed, China's unprecedented rise from widespread poverty bears testimony to trade's transformative economic power--it makes clear that trade not only has benefits but also significant costs."
but NAFTA was a massive job killer
As it happens, Don Boudreaux [2] just published something relating directly to this:
"since NAFTA took effect Mexicans have invested more – 59 percent more, to be precise – in manufacturing activities in the U.S. than Americans have invested in manufacturing activities in Mexico."
Quoting Confucius again:
Obviously you've never worked there!
No, I haven't. But I've been there many times, and know many people who do work there. What I've observed myself is that for the average person on the street in Shanghai - say, someone making and selling pork buns, or a farmer bringing in a cart of vegetables from the country - there seems to be a significant laissez-faire attitude. At a larger scale - what we're talking about for international trade - my perception is that while China may have many barriers, knowing the right people and being able to "grease the wheels", makes things proceed relatively easily. In America our regulations are taken much more seriously - we don't have anything like their degree of corruption, but we also don't have that as a means to get around onerous rules.
[1] http://www.ddorn.net/papers/Autor-Dorn-Hanson-ChinaShock.pdf
[2] http://cafehayek.com/2016/01/which-way-flow-the-equity-inves...
EDIT: formatting