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I would completely agree with some points that Mr Cobb made in his book Sustained the Common Good about Free Trade Agreements with Mexico and Canada and serious consequences we as Americans might face in a near future Free trade despite the textbook arguments in its favor creates a basic problem In a situation with free movement of goods and technology and capital - but not of labor - what happens Employers tend either a to move toward the cheaper labor or b to press for removal of Choice a leads to the loss of jobs in the United States as industries produce goods in Mexico for sale in the US - and falling wages as a result Choice b leads to similar but not identical results as the importation of cheaper labor impediments to importing cheap labor drives the price of labor down Why in the face of the potential impacts does the President seek a free trade agreement FTA There are reasons Cheap labor means cheaper consumer goods A wider trading area offers economies of scale and benefits American business The prospect of investment more employment and greater exports will help Mexico and we have a stake in the well-being of our neighbor Indeed an impoverished Mexico generating streams of illegal migrants could generate massive problems for the US and American labor The Presidents dilemma of course is the conflict between the advantages offered by free trade and the potential impact upon US wages employment and population growth dismiss the issue in mutually contradictory ways but they have one thing in common none of them It raises a fundamental question Do we want to try to preserve our wage differential in a world four-fifths of which is less developed In the third world the engine of population growth generates so many potential workers that it drives wages down toward subsistence levels Are we willing to let it happen here
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