Re: Here comes the Big One?

On Aug 10, 2007, at 2:44 PM, Robert Wrubel wrote:

Since Glblzn is widely associated with “free trade” laws like NAFTA and WTO, and since these have pummelled American workers, should we support the reverse of free trade, i.e. restrictive tariffs, protectionist measures, tax breaks for domestic job creation, etc.? Will these, as conventional wisdom has it, lead directly to a collapse of global trade, and Depression, as they did in the 30’s?

Not impossible. Trade is often given a starring role even though
there are many homegrown roots of our problems (I tried to argue this
point with Ralph Nader on The Nation cruise, but he wouldn’t hear
it). Higher minimum wages, better labor laws, a civilized welfare
state (I know I’m annoying Angelus Novus with this list) would do a
lot more to improve the status of the American working class than
repealing NAFTA ever would. Much of the damage done to American
manufacturing jobs by NAFTA probably would have happened anyway
without the agreement. And precisely what effect has the WTO had on
American workers? Very little, I’d say. NAFTA has probably done most
of its harm in Mexico - not that Mexico would be a booming paradise
without NAFTA. As long as there are 5 or 10 to 1 wage disparities
right here in our own hemisphere capital will feel an irresistible
pull southwards. So the solution is to do everything we can to help
raise wages in the South - for which our unions are doing close to
nothing.

Doug

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