Free Trade

-----Rebuttals-----R1 was for acceptance, not arguments. Conduct?"Race to the bottom argument"Nations that have higher wages can still beat low wage nations when the higher wage nation has other comparative advantages such as higher productivity or higher quality products. [1] [3] And, the US is at the top of the world when it comes to productivity. [5] So, our comparative advantage would allow the US to better produce skill intensive goods and sell them around the world, increasing wealth for us and therefore increasing prosperity.Regulations can be simplifyed and streamlined, to make America more competitive. And this would make the US more competitive, and as I said earlier, other comparative advantages such as higher productivity would make the US win.R1 was for acceptance, NOT arguments. I will rebut her other arguments.Inflation was not boosted because of NAFTA, and that didn't cause slow economic growth in middle class households. Low economic gains were caused by high income inequality, itself derived from low top income tax rates. Free trade would increase the wealth of the middle class, thus helping my side of this debate.About the rust belt, it simply makes resources become efficiently allocated where a nation has the greatest comparative advantage, in this case Mexico. However, the Midwest has a different niche (comparative advantage) when it comes to trade. No longer is the Midwest most efficient at producing automobiles. Now, the Midwest produces other, higher tech automobiles and products such as lithium car batteries, which is the same as what free trade would cause — specialization.As I said earlier, with free trade lower wealth nations would specialize in producing low skilled labor intensive products such as socks and pants, clothing. Higher skilled nations such as the US would specialize and sell skill intensive products such as aircraft. And we would exchange and trade goods and we would both mutually gain.C1: Improves Lives of CitizensMy opponent basically says the free trade harms the poor. This is not exactly true. Free trade helps the poor. Free trade mostly increases competition in sectors where low wage countries can compete in, such as food and clothing. Since poor people have a much higher propensity to consume products such as food and clothing, free trade which minimizes prices among the poor gives the poor higher purchasing power. [1] Also, nations that have engaged in free trade witness increased wealth among the poor. For example, in Indonesia, in 1975 malnourishment among children was greater than 50%. Now, it is about 1/3rd of children. [8]Empirical evidence has found that free trade has added about $2,000 to the annual income of the average US family because of cheaper products. [2]Furthermore, free trade has had more beneficial effects. For instance, economist Catherine Mann predicts a new surge of technology employment in the US because of the explosion of international trade. [4] Free trade causes businesses to lower prices universally. Lower prices increases purchasing power, which helps consumers purchase more goods and further help the economy.C2: We are ConnectedCitizens of the world are vastly connected with others in means of trade. For example, the elimination of tariffs would reduce the prices of steel, which would reduce the prices of computers in another industry, and the spread is all connected. Other industries, perhaps a doctor's office, would have lower costs because the steel used in products such as the computers they bought, and the cheaper steel for the doctor's products, would be cheaper. These fractions of dollars really add up. So, trade liberalization would reduce prices in mostly (if not all) fields. So, free trade would increase wealth and reduce costs. C3: Comparative AdvantageFree trade increases competition among businesses with no borders. Thus, individuals and businesses must specialize in what they produce. By specializing in different tasks, more goods are produced, further lowering prices. Countries can do the same. By specializing in a few particular industries, a nation utilizes its resources and are reallocated in areas where America is more efficient at producing. This is why America tends to export skill-intensive goods such as films, biotechnology goods, capital goods, and industrial products. [6]We do not need to worry about low-wage countries competing us out of jobs. For example, although we may be better at making socks than workers in Bangladesh, we will not export socks, because we have a comparative advantage in producing higher tech goods instead.So, we would sell skill intensive goods, and import low skill goods. [7] And, since skill intensive goods create greater wealth, American workers would enjoy greater wages. So, the reallocation of resources in which America is efficient, would make US workers save money on labor intensive goods, and make workers more prosperous in skill intensive goods where the US has a comparative advantage. C4: PeaceNations that engage in free trade are more akin to peace, for obvious reasons. The nations are interdependent, and rely on another for specialized goods. So, they avoid war to get the goods they need and enjoy mutual prosperity. So, free trade increases peace and reduces the likelihood of war. [9]C5: Economic GrowthIn free trade the workers would gain from producing more efficiently and consuming higher quality and services at lower prices. Empirical evidence points out that nations that engage in free trade enjoy greater economic growth. [10] And in a stronger economy, demand is increased. Increased demand leads to more jobs, expanding businesses, and a continuum of economic growth, as business size and capacity, as well as local purchasing power and jobs all increase, resulting in broad prosperity.C6: Other Natural Benefits of Free TradeSpecialization and free trade allow the U.S. to become more competitive and innovative. Innovation constantly provides new technologies that allow Americans to produce more, improve our health and the environment, improve education, and have greater investment opportunities. The resulting economic growth generates better-paying jobs, higher standards of living, and a greater appreciation of the benefits of living in a peaceful society. [10] Thus, free trade has many external benefits.Conclusion:Free trade moves resources into areas we are not efficient and moves them to areas that the US has advantages in and greater efficiency. Specialization makes resources become more efficient and reduces costs. Lower prices put more money in the economy, and therefore grows the economy. Specialization increases working wages, cuts poverty rates, and increases peace. Comparative advantage maximizes the number of jobs, increases productivity, lowers costs of goods, and increases peace, and all the benefits of innovation and competition by making efficiency a central cornerstone of the economy, and the natural market. Comparative advantage helps skilled American workers, and makes us utilize resources efficiently, helping the whole economy. Thus, we need free trade for broad American prosperity.Sources: [1] Organization for Economic Cooperation and Development. Agricultural Policies in OECD Countries: At a Glance 2008 Paris: Organization for Economic Cooperation and Development, 2008. Print. [2] C. Fred Bergsten, director of the Institute for International Economics, Foreign Affairs (89)[3] http://tinyurl.com...[4] Catherine Mann, "Globalization of IT Services and White Collar Jobs: The Next Wave of Productivity Growth" (Washington, DC: Institute for International Economics, 2004)[5] http://tinyurl.com...[6] The World Factbook (iPod App), United States, 2011.[7] http://tinyurl.com...[8] http://tinyurl.com...[9] http://tinyurl.com...[10] http://tinyurl.com...