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Economists have advocated the notion of comparative advantage to advance the cause of free trade. The idea is that group A can produce a commodity B more efficiently than group C. C can produce commodity D more efficiently than A. Therefore A and C should trade B and D instead of trying to produce it themselves. It sounds good in theory, but when applied on a global level between nations, problems can arise.
Today we see the United States runs a huge trade deficit with China as a result of the implementation of such ideas. In fact the United States does not have sufficient commodities or manufactured goods to trade with China. The deficit is only maintained because China is willing to accept US dollars as payment for it's goods.
This arrangement has resulted in the loss of US jobs to other countries which has hurt many Americans. Not only that but it has increased the debt of individual Americans and the US government.
So the question is, has free trade been good for the United States?
Today we see the United States runs a huge trade deficit with China as a result of the implementation of such ideas. In fact the United States does not have sufficient commodities or manufactured goods to trade with China. The deficit is only maintained because China is willing to accept US dollars as payment for it's goods.
This arrangement has resulted in the loss of US jobs to other countries which has hurt many Americans. Not only that but it has increased the debt of individual Americans and the US government.
So the question is, has free trade been good for the United States?