Free Trade

[Tipsy]

I was watching the news today to see the results of the Puerto Rico primary, and Obama happened to be on CNN giving one of his stump speeches and he was at a part about free trade. I'll look up the exact text if any wants it, but to paraphrase he said he was in favor of free trade, but that it had to be 'fair'. His example of it not being fair was that South Korea (if I remember the country correctly) could sell thousands of cars in the United States while we could only sell hundreds of cars in South Korea. As a result, he stated, it was unfair and he would not support this.

I realize it's becoming somewhat more politically incorrect being against free trade, but his assertion that he is for free trade, but only if it is 'fair' is not free trade; he is going against the very basic concepts Ricardo lays out. Each country focuses on what it has a comparative advantage in and then through trade both countries can exceed their productions possibilities curve (what they can produce) and both countries rise in prosperity.

However, this "pro-free trade" that is "fair trade" goes against the very essence of comparative advantage - if a country is better at making cars then we shouldn't be complaining about how many cars we can sell there. That is being against free trade.

Feel free to argue against free trade in general, I just wanted to bring up this "fair trade" idea tends to just be political correctness for the new brand of protectionism.

 

[Ntrik_]

I was watching the news today to see the results of the Puerto Rico primary, and Obama happened to be on CNN giving one of his stump speeches and he was at a part about free trade. I'll look up the exact text if any wants it, but to paraphrase he said he was in favor of free trade, but that it had to be 'fair'. His example of it not being fair was that South Korea (if I remember the country correctly) could sell thousands of cars in the United States while we could only sell hundreds of cars in South Korea. As a result, he stated, it was unfair and he would not support this.

Well at the same time.. South Korea is getting all the 30 months++ old beef products, which are known to be infected with mad cow disease.... This free trade deal seems really flawed in general. But aside from that it's working out well between U.S. and Canada isn't it?

 

[Tipsy]

Well at the same time.. South Korea is getting all the 30 months++ old beef products, which are known to be infected with mad cow disease.... This free trade deal seems really flawed in general. But aside from that it's working out well between U.S. and Canada isn't it?

It's had its problems:
United States – Canada softwood lumber dispute - Wikipedia, the free encyclopedia

Generally the problem is not enough actual free trade due to the continuance of subsidies, tariffs, etc. Free trade works, it just isn't whole-heartedly applied. The softwood lumber dispute is an example of this.