I think the significant degree of globalization today, versus in the 1930s, is definitely a huge part of the lack of calls for protectionism. Why certainly there may still be some week calls for it in US manufacturing, it seems likely that many of the goods that don't have a locational advantage for the US are high-tech, and as such are more likely to have to worry about being taxed by foreign governments instead of needed domestic protection from foreign industries.
Furthermore, consumers love free trade. Everyone knows that free trade is a boon for material wealth (or, at least almost everyone). And if there's one thing capitalist societies love, it's stuff... cheap stuff. And in a society where the average consumer spends himself into debt to keep up with the Joneses (or the characters on TV), higher prices on imported goods will make that credit limit creep closer faster and faster. Which means less stuff. Which presumably means less utility if he's the economic man.
Good points, but on the first sentence of your second paragraph ("consumers love free trade"), how would you explain that a Gallup poll from February 2013 found this:
"What do you think foreign trade means for America? Do you see foreign trade more as--an opportunity for economic growth through increased US (United States) exports or a threat to the economy from foreign imports?"
57% Opportunity for economic growth
35% Threat to the economy
3% Both (Vol.)
1% Neither (Vol.)
3% No opinion
[Gallup Poll, Feb, 2013. Retrieved Apr-30-2013 from the iPOLL Databank, The Roper Center for Public Opinion Research, University of Connecticut. http://www.ropercenter.uconn.edu/data_access/ipoll/ipoll.html ]
It seems like "outsourcing" became a buzzword in the last election, which grew into a sort of political rhetoric about being "tough on China". Maybe the poll reflects that people conflate foreign trade with the loss of American jobs.
I think the significant degree of globalization today, versus in the 1930s, is definitely a huge part of the lack of calls for protectionism. Why certainly there may still be some week calls for it in US manufacturing, it seems likely that many of the goods that don't have a locational advantage for the US are high-tech, and as such are more likely to have to worry about being taxed by foreign governments instead of needed domestic protection from foreign industries.
ReplyDeleteFurthermore, consumers love free trade. Everyone knows that free trade is a boon for material wealth (or, at least almost everyone). And if there's one thing capitalist societies love, it's stuff... cheap stuff. And in a society where the average consumer spends himself into debt to keep up with the Joneses (or the characters on TV), higher prices on imported goods will make that credit limit creep closer faster and faster. Which means less stuff. Which presumably means less utility if he's the economic man.
Good points, but on the first sentence of your second paragraph ("consumers love free trade"), how would you explain that a Gallup poll from February 2013 found this:
Delete"What do you think foreign trade means for America? Do you see foreign trade more as--an opportunity for economic growth through increased US (United States) exports or a threat to the economy from foreign imports?"
57% Opportunity for economic growth
35% Threat to the economy
3% Both (Vol.)
1% Neither (Vol.)
3% No opinion
[Gallup Poll, Feb, 2013. Retrieved Apr-30-2013 from the iPOLL Databank, The Roper Center for Public Opinion Research, University of Connecticut. http://www.ropercenter.uconn.edu/data_access/ipoll/ipoll.html ]
It seems like "outsourcing" became a buzzword in the last election, which grew into a sort of political rhetoric about being "tough on China". Maybe the poll reflects that people conflate foreign trade with the loss of American jobs.
ReplyDelete