| A late reply, it says I'm posting "too fast"... > Forbid companies to outsource labor outside their target market country, or impose heavy tariffs, and voila. This is nonsense economics, straight out of Donald Trumps playbook. It hurts everyone involved in the process. If unskilled labor becomes too expensive, it's simply eliminated. Business looks elsewhere. This hurts the people in the rich country less, there are more opportunities for people there. The people in the poorer countries stay poor, because they don't get the kind of foreign capital they need to advance. You know, the kind of money that buys things on the global market, the kind of money that the US just gets to print. > That will mean less cheap gadgets in said market country (e.g. US), but more actual jobs, and a healthier middle class (and thus economy), and thus better access to necessities. Not just "cheap gadgets" will be more expensive, everything will be, because the whole economy is intertwined in subtle ways. This makes everyone poorer, but it especially hurts those people that can afford the least. They'll be able to afford even less. You're not helping a middle class by raising prices on low-end jobs. Those jobs will disappear when they become too expensive. They can not become middle-class jobs by fiat. > This will also force third world countries to actually become competitive in quality and delivery, not just throw sweatshop-like labor (including from children and in some cases, slaves) and cheaper dangerous working conditions at the problem. If you have sweatshop-like conditions, which I don't think is the case here, then that is still a better alternative than whatever other jobs these people could've had instead - otherwise they would do those. Remember, the government can't just decide everyone gets to have a good job. Isolating these third world countries from the global market doesn't help them become more competitive. It's not like it hasn't been tried, mind you. |
That's a facile response. The truth is that tariffs and similar restrictions have been used by every major economic power on its way to the top, the US perhaps more than others:
"Britain was the first country to successfully use a large-scale infant industry promotion strategy. However, its most ardent user was the U.S.; the economic historian Paul Bairoch once called it "the homeland and bastion of modern protectionism" (Economics and World History: Myths and Paradoxes, Bairoch)." [1]
Of course once they got there, they suddenly find protectionism "not working" anymore, and other countries shouldn't use it -- like someone who got to the top kicks out the ladder he used lest others use it too.
In other words, the interests of the 10% are taken as economic gospel (after all economists always belong to the 10% and cater to that crowd, especially anybody who's let anywhere near policy makers and top universities) -- and let the middle class and the bottom 30% be damned.
>Not just "cheap gadgets" will be more expensive, everything will be, because the whole economy is intertwined in subtle ways. This makes everyone poorer, but it especially hurts those people that can afford the least.
Everyone needs to be "poorer" when it comes to affording consumerism anyway (from smartphones to the tons of clothes [2]), and "richer" in affording rent, healthcare, education, job, and other such necessities, that is, the opposite of the trends for the last 30+ years.
>If you have sweatshop-like conditions, which I don't think is the case here, then that is still a better alternative than whatever other jobs these people could've had instead - otherwise they would do those.
The same could be said for child labor (better than the kids/families starving), and yet we outlawed that (at least in theory).
[1] https://en.wikipedia.org/wiki/Protectionism_in_the_United_St...
[2] https://www.huffingtonpost.com/entry/transforming-the-fashio...