12 October 2007

The losers aren't being compensated

Mark Weisbrot writes:
Free-trade advocates...always make distorted statements such as “the average household has gained $10,000 from free trade.” Now, if a hedge-fund manager makes an extra billion dollars, it can raise the average income in his town or suburb quite a bit. But it doesn’t do much for others in the area; and in fact it is likely to be at the rest of the public’s expense.
Quite so. Free trade can benefit everybody, but only if the losers are compensated. Otherwise it's only the abstract concepts 'the economy' or 'the country' that benefit. There's very little compensation going on, as far as I can see.

No comments: