Free Trade

Rebuttals"countries compete with each other so much that it's a detriment to everyone. .. . they have to start cutting regulations and wages etc just to compete. perhaps for a country that is just starting to develop, or in the process of developing, they being on the receiving end will reap benefits of something they wouldn't have had otherwise. but for a countries that are already considered developed nations like the US, it leads to problems. "My opponent believes that free trade is bad because of competition between countries and businesses. However, why would they have to cut wages or fire workers? There is a better way for businesses and countries to make a quick profit; lowering prices. This also benefits consumers because with lower prices they can buy things cheaper. A businessman would likely not cut his workforce when he can simply lower prices to gain a greater profit than his competator. Also, cutting regulations benefits the market more. Cutting them is not a bad thing because it helps businesses more easily to gain profit and help the people. Cutting regulations =/= cutting jobs and wages. As I said a small amount of regulations should be in place. Minimum wage and laws against child labor would be a perfect example. However, too much regulation destroys wealth for the entire society, not just what you consider to be wealthy. "there might be some benefit to some people, with lower prices in goods. .. . but not for everyone, and over the long run, it brings everyone down. "My opponent seems to live in a world where lower prices does not benefit anyone and as a direct cause wages and labor are cut. I have no idea what that means so I am just going to teach my own lesson in economics 101. Economics 101: The Effect of Low PricesWhen a business lowers prices in order to gain more profit than its competitor, people usually react by buying the cheaper items. This allows a business to gain more profit than its competitor and be more successful. If this continues, the owner of the business may increased the amount of jobs and expand his business in order to gain even more profit and possibly raise wages for his current workers. [1]Anyway, my opponent continues to boast that the Free Trade Act enacted by President Bill Clinton was bad and caused inflation. However, he has no sources to back him up. He may not be telling the truth. How are we so sure that boom was only due to the internet and not the Free Trade Act. Also, my opponent may remember that flat tax debate we did. In that debate I placed a link showing that the richer are getting richer, but the poor are getting poorer and at a faster rate. [2]Anyway, now to my own points on why the US should have free trade. Free Trade Allows A Country to Become More Competitive and InnovativeInnovation provides new technology that allows countries to produce more, cure more diseases, pollute less, improve education, and choose from a greater range of investment opportunites. This results in economic growth allowing for better-paying jobs, higher standards of living, and greater appreciation of benefits of living in a peaceful society. New technologies bring about change in the market which, as US history shows, benefits society as a whole. One of the reasons why economic recessions and depressions happen would be because of new technologies challening older methods of production. This makes some sectors suffer until they can adapt to the new changes which end the economic woes and benefit society as all sectors would be advanced in the current technology now. [3]Higher Standard of LivingFree trade does improve people's lives. In the 19th century, British economist David Ricardo showed that any nation that focuses on producing goods in which it has a comparative advantage will get get cheaper and sometimes better goods from other countries in return. As a result of free trade, nations around the world gain from producing more efficiently and consuming higher quality and services at lower prices. [3]Economic GrowthEconomic freedom is essential to economic growth and true measure of economic freedom is free trade. Of the 142 nations whose economies have been observed during a seven year period for a study, the nations with the most free trade had more economic growth that the nations with the least free trade. A growing economy increases the demand for goods and services. As demans increases, businesses start to expand and create more and better-paying jobs. [3]Stronger Institutions and InfrastructureFree trade also supports the strengthening and development of institutions that safeguard economic freedom and development. Facing new opportunities to sell and purchase goods and to open all sorts of trade-related businesses, individuals have a strong incentive to create mechanisms and institutions to seize other opportunities. Free trade also supports the construction of new and stronger infrastructure. With free trade more and better roads as well as ports and airfields would need to be built to support free trade. [3]PeaceFree trade fosters an enormous chain of economic activity, the benefits of which create a social desire to be at peace with neighbors and faraway nations in which trade is conducted and maybe conducted in the future. When someone sees all the benefits of free trade, they want peace to preserve it. The Middle East, in which civil wars and massive riots takes place, is one of the most restrictive places on free trade in the entire world. North Korea, a country plagued by starvation and poverty, also is very restrictive with free trade. South Korea on the other hand is propsering with more free trade. [3]1. . http://wiki.answers.com...2. . http://www.ajc.com...3. . http://www.heritage.org...