CEPR - Center for Economic and Policy Research

Multimedia

En Español

Em Português

Other Languages

Home Publications Blogs Beat the Press The Post's Simplistic Editorial Criticizing "Simplistic" Thinking on Trade

The Post's Simplistic Editorial Criticizing "Simplistic" Thinking on Trade

Print
Sunday, 07 November 2010 07:25

The Washington Post editorial board, which thinks that Mexico's GDP quadrupled between 1988 and 2007 (due to NAFTA), is again pushing its trade agenda. The Post plays the usual game of calling trade agreements that increase protectionism in many areas (e.g. patents and copyrights) "free-trade" agreements. (Anyone out there opposed to "freedom?")

The "simplistic" ads against U.S. trade policy that the Post criticized reflect the fact that this policy has had the effect of redistributing income upward over the last three decades. These deals have been quite explicitly designed to put manufacturing workers in direct competition with low-paid workers in the developing world.

At the same time, these deals have done little or nothing to remove the barriers that make it difficult for students in Mexico, China, or India from training to work as doctors, lawyers, or other highly paid professionals in the United States. There would be enormous potential gains to consumers and the economy by bringing down the cost of medical care, legal services and other services provided by these workers.

This would be a trade policy that would promote both efficiency and equality, but you won't read about it in the Washington Post.

Comments (2)Add Comment
Kaldor-Hicks Compensation to be Implemented for NAFTA
written by izzatzo, November 07, 2010 7:03
This would be a trade policy that would promote both efficiency and equality, but you won't read about it in the Washington Post.


Since taking over the House of Congress, the Republicans have prayed about it and agreed that since the efficiency gains of NAFTA were so large, they will implement the Kaldor-Hicksian equality principle where winners compensate losers for income lost due to NAFTA, as well as the welfare loss to consumers for suppression of competition.

Teabaggers said they would like to join in but it was too hard to spell so they'll just skip it.
Barriers Preventing Foreigners from Entering the Legal Industry are Falling
written by LSTB, November 07, 2010 8:59
At the same time, these deals have done little or nothing to remove the barriers that make it difficult for students in Mexico, China, or India from training to work as doctors, lawyers, or other highly paid professionals in the United States. There would be enormous potential gains to consumers and the economy by bringing down the cost of medical care, legal services and other services provided by these workers.


Actually, Dean, cost of legal services is falling on its own. Indeed even the BLS, which believes the economy will recover, asserts:
Competition for job openings should be keen because of the large number of students graduating from law school each year.

http://www.bls.gov/oco/ocos053.htm
Meanwhile, the ABA has both approved accreditation of foreign law schools, and it allows outsourcing and "unbundling" of legal work to non-lawyers. There's much anxiety about outsourcing legal work to India. http://www.law.com/jsp/article...ompetitors

Statistics showing that lawyers are "highly paid professionals" are misleading because growing numbers of young legal professionals cannot break into the profession.

Write comment

(Only one link allowed per comment)

This content has been locked. You can no longer post any comments.

busy
 

CEPR.net
Support this blog, donate
Combined Federal Campaign #79613

About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

Archives