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**KlaraNovikoffaZ** · 09-13-2009, 08:38 PM

I'm happy that someone in one of the most major financial newspapers (FT is 2nd to the WSJ) has finally come out and admitted what workers have known all long.

Free trade is not exactly free if you're offshoring work and ramping up imports, but you are NOT balancing the increase in imports with an offset of exports from your own country and the labor market shrinks.

Shrinking labor markets (demand and supply both go down) causes shrinking incomes, shrinking incomes lead to shrinking tax revenues and shrinking consumer demand... these are effects which are trying to counterbalance the loss in household wealth caused by the import drain.

We have papered over these losses with credit but now that the credit-bandage has been so rudely stripped off... we're all staring at a huge infection filled with pus that needs mending and will take a long time to heal.

09-13-2009, 08:38 PM	#9
KlaraNovikoffaZ Join Date Oct 2005 Location USA Posts 384 Senior Member	I'm happy that someone in one of the most major financial newspapers (FT is 2nd to the WSJ) has finally come out and admitted what workers have known all long. Free trade is not exactly free if you're offshoring work and ramping up imports, but you are NOT balancing the increase in imports with an offset of exports from your own country and the labor market shrinks. Shrinking labor markets (demand and supply both go down) causes shrinking incomes, shrinking incomes lead to shrinking tax revenues and shrinking consumer demand... these are effects which are trying to counterbalance the loss in household wealth caused by the import drain. We have papered over these losses with credit but now that the credit-bandage has been so rudely stripped off... we're all staring at a huge infection filled with pus that needs mending and will take a long time to heal.
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