Tuesday, October 16, 2012
Winners and Losers in Free Trade.
It is often said, in the justifications of free trade, that there are more winners than losers. But this is not quite what is actually the consequence of free trade. It is more correct to say that there is more winning than losing, but this is not at all the same thing. The winning may be concentrated among a few, while the losing could be distributed among many, in which case there would be more losers than winners. Further, the losers could be among the less wealthy, and thus less able to afford their losses. Is this what we are seeing in the new global economy? The rich winning, and getting very rich, while many others are losing, and hurting?