Free Trade is not good for all but should be promoted without doubt
Larry Summers, FTNo one thanks global trade for the fact that their pay cheque buys twice as much in clothes, toys and other goods as it would otherwise would
From the Economist
One study by economists at the University of California, Los Angeles, and Columbia University calculated that median income earners in America would lose 29% of their purchasing power if America was closed to trade, but that the poorest would forfeit as much as 62%, because they spend proportionately more on goods that are traded. Add to the reckoning the eventual benefits of a richer Chinese market for exporters, the spur to innovation in America from global competition and the low-cost inputs for consumer goods, such as the iPhone, that raise the productivity of American designers, and the arguments in favour of free trade are overwhelming.
with free trade the best place to produce Bananas is probably going to produce Bananas for the whole world, they will have the money to invest, to do R&D and to extend their lead. However the other banana producer in less favor areas will close their doors.
what should be done?
Promote free trade + spread the benefits
I always think about a classroom, some teachers don't move on to respect some students that are slow or stay behind. In my country this is the policy, always be worried with the bad student and the result is small overhall progress.
what would happen if the teacher keep pushing the class all the way. The average would be much better and there would be some students left behind. I think this is the right way with extra support off class to the weak students. They had to work more to catch up.
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