http://www.economist.com/news/leaders/21596934-barack-obamas-unwillingness-fight-free-trade-expensive-mistake-how-make-world
"No nation was ever ruined by trade." - Ben Franklin
Trade between nations is a key to global economic prosperity and all of the benefits that come along with it. In this article from The Economist the writer discusses the state of free trade among the major world economic players. America, who has been at the forefront of promoting an open global economy, has been particularly bad recently by seeming almost reclusive. Congress has failed to honor commitments and the Federal Reserve has put forth regulations that could hurt foreign banks.
President Obama has also had a major roll in this issue. Prior to being elected, he was cited in saying "America cannot turn inward" but many of his actions do not fit these words. Specific examples are described in the article, but overall The United States and its leaders are negatively impacting the global economy by not employing easily-done trade boosters.
Trade is absolutely essential if we are to achieve a healthy global economy. If America wants to return to the economic prosperity that we achieved before 2008 then we need stimulate trade. Even if it means helping China out in the process.
ReplyDeleteI found this article very interesting. Free trade is overwhelmingly good for the world. Yes some may get hurt but the gains are far greater than the loss. More trade is what the world need, not less.
ReplyDeleteI disagree with the notion that President Obama has established policies that are mostly bad for free trade. Throughout the years he has been in office, he has encouraged trade between the United States and Canada over oil agreements. Most importantly, the Obama administration is working hard on finalizing a free trade agreement between the U.S. and Europe, which is called the Transatlantic Trade and Investment Partnership. It is likely to be done in 2014, and it will be a significant step for encouraging free trade in the world.
ReplyDeleteThe main thing President Obama's administration has attempted to deepen trade agreements with existing trade partners in addition to forging new relationships (specifically the "Trans-Pacific Partnership"). We currently only have 20 free-trade agreements, but they are far from completely "free." The service liberalization is key to the advancement of liberal trade, and will benefit all people in the US who purchase services...so everyone. We all know lower prices results from greater competition.
ReplyDeleteI honestly feel like total and complete "free trade" is a very theoretical concept that is hard to apply in real life. Due to human concerns like poverty and inequality, engaging in total free trade is impossible. The US, I feel, ranks pretty high in being a mixed economy closer to the free trade side. Some degree of protectionism and isolationism is understandable.
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