“Trickle-down economics is a myth. Enriching corporations — as the TPP (Trans-Pacific Partnership) would — will not necessarily help those in the middle, let alone those at the bottom.” On the Wrong Side of Globalization, New York Times, March 15, 2014
Free trade does not work if you are dealing with a country that uses slave labor or sacrifices other important issues like the environment or safety. Improving the environment does not happen without costs. The United States invests in technology to help improve our air quality and purity of our drinking water. Saving our forest land comes with a price. Investing in solar energy helps future generations to live in a better environment but presently it is expensive compared to fossil fuels.
Slavery was banned 150 years ago, even though treating the future generations of the slaves equally is still a work in progress. If other countries still use slaves, we effectively are supporting their bondage and putting our work force at a competitive disadvantage by buying the goods and services they produce. The same is true with a minimum wage law. The company with a domestic production facility that uses unskilled workers is at a competitive disadvantage over other companies that use unskilled workers in other countries that will work for lower wages because of the forces of supply and demand and no minimum wage laws. Continue reading