Posts Tagged ‘trade policy

02
Sep
08

Victims of globalization? I think not…

An interesting article I received from an acquaintance of mine. It touts the trade policies of the 1990’s, while remaining fixated on recent fed bailouts.

Yes, I believe it’s safe to say that emerging markets, combined with a weak dollar, have boosted commodity and energy prices, but I have difficulty seeing any validity in the argument that we as Americans have fallen victim to globalization in the recent decade.

But in this decade, rampant growth in emerging markets has mercilessly boosted prices for energy and commodities; competition from foreign workers has tamped down wage growth, and the weak dollar has made U.S. companies vulnerable to foreign buyers. “In the 1990s, we got all the upside of globalization,” said David Smick, a consultant and author of the new book “The World Is Curved: Hidden Dangers in the Global Economy.” “Now we’re getting some of the downside.”

Click here for the entire article.

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01
Sep
08

Liberalizing tariffs on capital goods accelerates growth

Antoni Estevadeordal and Alan M. Taylor report that liberalizing tariffs on capital and intermediate goods correlates directly to accelerated long-run growth.

Recent trade liberalizations—and their intellectual underpinnings, whether we label them the “Washington Consensus” or not—should take some credit for unwinding many of those inefficiencies from the 1980s to today. Where those barriers have dropped growth accelerations have been significantly higher than where barriers have remained. Some countries have reaped the benefits. More could yet do so and enjoy higher incomes and lower poverty rates—but this is less likely to happen if any new consensus says that trade policy doesn’t matter very much.

Click here for the entire report via The Custom-House.

23
Aug
08

Correlation between free trade and peace

Don Boudreaux’s article, Want world peace? Support free trade, highlights the unique correlation between free trade and peace.

Protectionists (of whatever party) believe that consumers who buy goods and services from foreigners cause domestic employment – and wages – to fall. Economists since before Adam Smith have shown that this belief is mistaken, largely because foreigners sell things to us only because they either want to buy things from us or invest in our economy.

One easily becomes aware of the contridictory stances politicians have taken in regards to trade protectionism and the long-run prospects of peace.




September 2017
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