The new economics - Post 7

Does free trade and globalization work? Depends on the objective. Are we talking amassing owned wealth for the few or creating a resource-rich community of nations for the many?

One thing it does NOT do is preserve higher labor costs for work that can be performed somewhere else at a lower labor cost. But, you might say, that is rational. But, I would counter, it is not rational if rationally determined ethical values (labor rights) regulate one labor source and laissez-faire values regulate the competing source of labor. Slavery, child labor, or 72 hour work weeks should not be options for civilized trading partners. (For that matter, neither should global pollution be an option.)

Another point—it would seem to me—is that in a fluid situation where a commodity such as labor cost is free to flow between disparate settings, equilibrium will be achieved at the lowest common level ... all else being equal. Here the "gravity" factor is the tendency for the buyer of a commodity to seek the lowest price ... all else being equal.

For the life of me, I cannot understand how Democrats let Bill Clinton pursue globalization, giving up our market leverage that could have been applied to rational labor rights and environmental regulations in the trade agreements. Except that Bill was never a democrat (small "d") but rather a moderate (Rockefeller) Republican.