The big question I’ve been struggling with in regards to the free trade debate is this:
Is cheap labor a legitimate source of comparative advantage?
I increasingly don’t think that it is. Yes, we get products more cheaply. But those products are made in countries with fewer labor restrictions, often in places that are not democratic, where workers cannot vote for changing laws. We’re effectively saying we want democracy where we live, for our own white collar professions, but we don’t want to be shackled by those restrictions for how we get rich, or how we enjoy our wealth. We’re effectively telling local blue collar workers that we’re okay with their level of work being taken over by people with less rights than themselves.
That increasingly doesn’t feel just. Comparative advantage makes sense for natural differences between countries, such as availability of natural resources or favorable weather for certain types of crops. But not for fundamental human rights.
Is cheap labor a legitimate source of comparative advantage?
I increasingly don’t think that it is. Yes, we get products more cheaply. But those products are made in countries with fewer labor restrictions, often in places that are not democratic, where workers cannot vote for changing laws. We’re effectively saying we want democracy where we live, for our own white collar professions, but we don’t want to be shackled by those restrictions for how we get rich, or how we enjoy our wealth. We’re effectively telling local blue collar workers that we’re okay with their level of work being taken over by people with less rights than themselves.
That increasingly doesn’t feel just. Comparative advantage makes sense for natural differences between countries, such as availability of natural resources or favorable weather for certain types of crops. But not for fundamental human rights.