Jonathan Schlefer
This lack of direct disagreement between advocates and critics of NAFTA reflects standard economic theory, which predicts both “gains from trade,” meaning higher total income and more efficient production, and “trade adjustments,” including job losses and salary cuts for some. “Trade adjustments” sounds pleasantly minor and temporary, but though economists do not like to say so out loud, their texts explicitly confirm that losses can … [ Read more ]
Content: Quotation | Author: Jonathan Schlefer | Source: The Atlantic Monthly | Subject: Economics
What Price Economic Growth?
To judge by the example of Canada, which began an experiment in free trade with the United States in 1989, the proposed U.S. free-trade agreement with Mexico is a threat to the social comity on which prosperity depends.
Editor’s Note: this was written back in 1992 but the analysis it provides is really interesting and of long-lasting value when evaluating free trade concepts (thanks to … [ Read more ]
Content: Article | Author: Jonathan Schlefer | Source: The Atlantic Monthly | Subjects: Economics, Trade