Dean Baker on free trade

Ce post résume assez bien les vues de Dean Baker sur le libre échange. Ses conclusions en termes de "policy" sont discutables, mais son analyse a un certain charme polémique (en particulier la citation sur la corruption, qui est délicieuse)

Brooks Pushes Nonsense on Trade
David Brooks' column is full of nonsense on trade this morning. The point is to propagandize on behalf of current trade policy, which is taking a beating in popular opinion as of late. Brooks includes a wide range of factors which are somehow supposed to imply that the current trade policy is good.
Just to to take a couple of my favorites, Brooks points out from 1991 to 2007 the trade deficit grew to $818 billion from $31 billion. "Yet, .... during that time the U.S. created 28 million jobs and the unemployment rate dipped to 4.6 percent from 6.8 percent."
Let's see, according to my calculator, the sun came up 5,840 times during this period. Therefore, by Brooks logic, trade must facilitate astronomical processes. For those familiar with economic theory, the expected impact of trade would be on wages, not the number of jobs. And most workers have seen very small wage gains over this 16 year period as the bulk of the benefits of productivity growth have gone to highly-paid workers.
(...)
Brooks also extols the fact that the people in this country have lots of kids -- that's great if you like global warming, otherwise it doesn't seem like such a great thing. Perhaps the best line is that the United States "benefits from low levels of corruption." This is probably because actions like having a CEO wreck a company, and then get a hundred million dollar severance package, are perfectly legal.
But the most serious inaccuracy in the Brooks piece is the claim that "once there was a bipartisan consensus behind free trade." This is not true. The bipartisan consensus was behind trade policies that put less educated workers in competition with low-paid workers in the developing world. There has never been support for measures that would put our investment bankers, our lawyers, our doctors and our columnists in direct competition with workers in the developing world. (Perhaps Brooks does not know that if I opened a newspaper, and staffed it with foreign reporters and columnists who I quite explicitly paid one-half the wage of their comparably qualified U.S. counterparts, I would be arrested.)
The public has turned against trade policies that were designed to lower the wages of middle class workers and have had this effect. Brooks is among the small group of people who have benefited from these trade policies. Now he is unhappy, that's the story.
--Dean Baker
Posted by Dean Baker on November 27, 2007 5:29 AM Permalink