Trade and jobs

The mantra of America’s liberals and big labor that greedy corporations are hurting America by outsourcing jobs abroad is not founded on time tested economic principles.  This distorted perception ignores the time tested principle of comparative advantage espoused by renown classical and contemporary economists.  Liberals and organized labor would have the U.S. invest in and export goods and services in which other countries are better suited than America to produce and furnish, all to the long term detriment of American productivity, GDP and consumer benefits. 
 
The fact is that we live in a dynamic, ever changing world in which the advantage of participating in any given economic activity shifts over time–in other words to borrow a phrase from another source, when one’s "cheese is moved",  they must adapt by moving to other more relatively advantageous economic activities. When we recognize and adapt to these changes there are often painful dislocations which occur, which affect great numbers of Americans. Nevertheless, adapt we must, or in time perish.
 

 

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