1 post tagged “free trade and the "great recession"”
General Motors and the entire auto industry is trying to survive now. America needs to support our industries. And, it appears that Libertarians may be wrong on the economy. Free trade has now come into question.
Even though I believe in free trade, I am becoming more skeptical as this Great Recession develops. Why? Because, it appears that most countries support their own home grown industries with various tax and reward subsidies.
On the other hand, America does a poor job promoting home grown enterprises. Now, it is time to reconsider our open door policy toward imports.
Low wage countries have an advantage in exporting their products. And, our corporations continue to outsource to low wage countries. Then, the products are sent back to America to be sold to Americans who are losing their jobs to low wage countries. This is a crazy way to manage an economy. Will the concept of free trade survive this "Great Recession"?
Libertarians of the Milton Friedman school may be unforgiving of Bush. But what has their free-trade globalism given us, but $5 trillion in trade deficits since Bush 1 and a new dependency on foreigners for the necessities of our national life and the loans to pay for them?
