Republican free trade VS Democratic free trade
July 02, 2008
Sean Lewis
Democratic free trade is
The foreign country opens it borders for US goods,
and the US opens it borders to foreign goods.
That is it, that is free trade.
Republican free trade is
The foreign country opens it borders to BOTH
US companies and the ability to exchange goods.
However, this is the problem. Republicans believe
US companies should be able to open plants in the
foreign country to exploit the cheaper labor, create
goods at low costs and then sell those products in
the US market at greater earnings to the US Corps.
If Americans have anything that the foreign country
needs the US is free to try to sell these goods.
The Republican free trade agreements destroy the
US middle class, while creating a middle class in the
foreign countries. It is also shortsighted in respect to
the fact that eventually the foreign nationals will
eventually learn to manufacture the products themselves
and be able to produce the goods cheaper than the
US companies. This means an entire industry will
be lost. Think of the current US Auto market,
or the appliance industry.
The end result will be what is occurring now,
stagnant US wages if not falling wages, fewer
well paying jobs and slower GDP growth.
The foreign countries will have a higher standard
of living, a growing middle class, rising GDP growth,
and expanding industrialize industries. Eventually
the US will become an UN-NEEDED trade partner.