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Originally Posted by Bodhisattva  You mentioned the conservative electorate, do you think that this is really all that is standing in the way of a solution? |
I certainly think the western world is severely limited by the consequences of conservative social welfare functions, where losses are deemed to be more important than gains. Given trade will necessarily lead to some redistribution effects, we're always confronted by welfare harming protectionism. It might also be the case that these problems are inflamed by the US election system, where geographic concentration of activities artificially magnifies the influence of the protectionist minded. Ultimately we also have to condemn preferential trade agreements. This has encouraged regionalism, with trade increasingly corrupted by the demands of multinationals (and their impact on labour power in both domestic and foreign nation). Moreover, it has reduced the chances of successful multilateralism (which would significantly reduce international wage differentials).
In the mean time, we suffer the consequences of inefficient labour mobility and the social problems generated by illegal movements