Hi Folks!
Dave G's source and Rick W's thoughts really won't touch the "hearts"
of 99%
of the economists in the world. If you read over my previous e-mail on the
subject, there is a implicitly powerful economic and political reality
presented. That is; When the short term political and economic costs (the
domestic costs of the subsequent unemployment, training, rural economic
upheavals, etc.----ie. the price associated with reallocating scarce
resources) of implementing "free" trade practices passes a certain
domestic
threshold----"WALLS' are quickly built (and/or not lowered).
Therefore, I believe NAFTA and WTO will only work (and be supported) up to
this important threshold, which differs in each nation. If I'm correct,
countries like New Zealand (large % exporters, without the benefits of huge
domestic consumption) better emphasize bilateral agreements with their
"natural" trading partners, rather than placing all their cards on
free
trade.
Regards,
Tom Wrchota, Proprietor
Cattleana Ranch
near Omro, Wisconsin
> In the space of just five years, 97 per cent of the people who were
supposed
> to benefit from globalization vanished from the bank's projection.
>
> By their calculations, half of the developing world's gains would go to
> eight rapidly growing countries: China, India, Brazil, Argentina, Mexico,
> Thailand, Turkey and Vietnam.
>
> A purist would argue that there is nothing wrong with the theory of trade
> liberalization. It is the implementation that is flawed.
>
> > They don't live in an economics textbook. They live in a world where
rich
> nations jockey for advantage in a trading system they designed and
control.
>
> Economists can deliver all the sermons they like about openness and
> productivity and entrepreneurship and comparative advantage.
>
> What experience has taught Africans and their impoverished Asian
neighbours
> is that life was better before globalization; trade deals do more harm
than
> good; and Western governments can't be trusted.
>
> Under those circumstances, protectionism is a perfectly rational economic
> strategy.
>
