Thursday, April 21, 2005

CAFTA Comments

OK Marco, there is no need to make it clear to everyone that I'm new to blogging and create a damn hyperlink!

I won't address the comments to my link calling it a mix between Buchanan and some other person because those are not substantive remarks.

To the person who stated that free trade is good: of course free trade is good. Nobody who has any economic background (and a brain) will doubt that. The problem is that CAFTA, NAFTA, SHMAFTA, BAFTA, DAFTA, and the upcoming FTAA... HAVE NOTHING TO DO WITH FREE TRADE. Ask yourself one question: why do certain advocates of free trade such as the Austrians, oppose these agreements? And also, why do I oppose the agreements if I am generally in favor of free trade?

Marco, so you're still not convinced... I'm going to give you a copy of an article (next time I see you) all about CAFTA that I hope you'll read...



Clara said...

I don't think you're going to convince any libertarian of the merits of protectionism. Not anytime soon.

Why not tackle something less ambitious -- like convincing Lee Bollinger that affirmative action is racist and hurts those it's aimed at helping?

marco said...

Given that different states have different levels of economic regulation, does it follow that we should close off trade between states untill all of them get rid of their economic regulation? I think not. As Clara said in another thread, you have to judge something with respect to its alternative, not the ideal,

Jeff said...

I think the biggest problem here is that these cafta opponents are, to borrow a phrase, "throwing out the baby with the bathwater." The free trade is good, but they don't like that there is no deregulation going along with it.

But using that against CAFTA is misleading. For example, if there were a bill for a tax cut, and for congress to build Ted Kennedy a new house, you might oppose it - saying that you don't want to buy Kennedy a house. But that doesn't mean that the tax cuts are bad. Only that you want the tax cuts without the Kennedy house.

So, same thing here. You want the free trade, but want the deregulation also.

The thing to remember is that even if CAFTA would hurt American wages in the near future (which is debatable), they would drive foreign wages way up, boosting the revenue of American companies, and driving up American wages in the long run.