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  • Free Markets Are Good for China—and Us, Too

    Is open trade and investment good for China but bad for the U.S.?

    The Heritage Foundation’s China Global Investment Tracker has just been updated. Through June 30, it shows over $60 billion in Chinese investment in Latin America. This worries some people. They think that China is gaining economic benefits and cementing strategic ties in our backyard.

    At the same time, the U.S. has had a clear and powerful opportunity for years to expand our own links to the region through free trade agreements (FTAs) with Colombia and Panama. Those agreements, though, are said to be a threat to the American economy that requires tens of billions of dollars in protection money in the form of Trade Adjustment Assistance.

    So which is it? Should we dismiss expanding Chinese economic activity in South America because, after all, that sort of thing will just hurt their economy? Or should we pass the FTAs immediately, recognizing that they will benefit our economy, and then move on to more trade and investment agreements?

    That answer is that America wins with freedom in economics as well as politics. Among the many reasons to improve our trade and investment ties around the world is to beat China at our own game.

    Posted in Economics [slideshow_deploy]

    4 Responses to Free Markets Are Good for China—and Us, Too

    1. Jeff, Illinois says:

      Free markets are a major reason that our nation's economy is failing. Large companies can't possibly compete with the cheap labor of other countries, thus the incentive is to send our manufacturing elsewhere . . wa la . . there goes our middle class. Weakened middle class means less buying power and less tax revenue. Then we have a microcosm of the world trade imbalance in our own nation, by having states compete with other states . . over tax and labor differences. The solution in the past history of our nation was tariffs. Without them, transnational corporations will continue to exploit our nation, buying off our politicians to gain greater tax advantage loopholes and ensure the complete distruction of our middle class work force.

      • Drew says:

        The truth is the exact opposite. Government intervention–the lack of free markets–is the reason our economy is failing. Also our educational system and culture is to blame. Americans shouldn't aspire to working low skilled assembly line or factory jobs while expecting a high wage for doing so. We need to be encouraging our students to aspire to jobs in technology and science. These are the jobs of the future. Why as a customer should I pay more for a product so that an American factory worker can have a wage that is not in line with his or her skill and education? It is not my responsibility to help to provide them with a higher salary than they deserve. This may seem harsh, but it's the truth. Every year it seems, American culture values education less and less. We are falling way behind other countries in math and science and then our answer is protectionism? That's not the answer. Neither is encouraging Americans to settle for factory jobs that can be done at lower cost by people in other countries. This is why Americans no longer work picking fruit like we used to. These are the jobs that Americans won't do, right? Well the factory job is the same thing. We shouldn't expect Americans to aspire to pick fruit and we shouldn't encourage them to work at a factory either unless they are making equipment for military defense.

    2. Andrea says:

      Is Panama and Columbia really someplace we want to be? Free trade is being hosted in our own backyard. It's only been a free years since we had a mass takeover of small state and regional banks by large banks. Whatever happened to anti trust laws. Now within the community we live in the local hospital is eat up all the small practices. We also live under a current administration that what's to own and control all industries. We have so many laws and regulating that impede the free market in this "democratic " nation what are we gonna do in a socialist or communist country.

    3. Bobbie says:

      free markets are even better when they're run under freedom and not communism and when the market is responsible, not the tax payer.

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