Should we Protect American industry from foreign competition This ques
"Has been a lifesaver so many times!"
- Catherine Rampell, student @ University of Washington
"Exactly the help I needed."
- Jennifer Hawes, student @ San Jose State
"The best place for brainstorming ideas."
- Michael Majchrowicz, student @ University of Kentucky
Should we Protect American industry from foreign competition? This question comes to the minds of all Americans at least once in their lives. The reason we ask ourselves this question is out of fear. The fear of someone in our family loosing their job to other nations because their abilities to produce goods at a lesser cost. The steel industry is plagued most by this fear, because of the dumping of steel into our nation.
There are many reasons that I feel that we do need to protect American industry from foreign competition; the main reason is there are many U. S. workers that are going to loose their jobs, because of the cheap labor that is found in other countries. I believe that we just need to level the playing field so that everyone has an equal competitive advantage. This is the main reason that I feel that we should in fact protect American industry from foreign competition. In my paper I will first tell the other side's views, next I will state my own views and opinions, and finally I will wrap up the paper with a conclusion section.
Arguments in Favor of Keeping Trade Free
In this section, I will highlight the main arguments why free trade should remain free. There are many arguments why some people like, Michael Kinsley who believe that trade should remain free. One reason is because trade can help the economy. The way that it's said to help the economy is that trade helps keep prices reasonable. "If widgets can be imported from Asia for a price reflecting a $1 an hour, then an hour spent making widgets adds value to the economy" (Kinsley, 300).
When other countries can produce a product for less then we should just let that country produce those products. "A capitalist who builds a plant knowing (or even not knowing) that it is less efficient than a rival deserves what he gets" (Kinsley, 299). In other words it the battle of the fittest and whoever's better equipped will survive. Free trade also keeps all producers making the best possible products at the least possible cost. Foreign companies force American companies to make a better quality product. Another reason people feel that trade is good is because of the comparative advantage (Kinsley, 300).
A problem with the protection view is "Like most protectionist measures are far from aiding American adjustment to world competition, it just puts off the day of reckoning" (Kinsley, 302). This is one of the main reasons why most are in favior of keeping "free trade free."
American Industry should be Protected
In this section we are going to try to answer the question, should we protect American industry from foreign competition?
First, the idea is not to completely close the United States import, but to limit import growth in some key industries. One reason that industry should be protected is that U.S. workers are loosing their jobs. As stated by Ross Perot "NAFTA could cost the U.S. 5.9 million jobs as employers stampede to Mexico's low wage labor market" (Hage, 65). Our workers need a sense of job security. Does anyone really think that we should lower American wages to compete on this level (Kinsley, 300)? No, because it's the well paid workers that are the consumers. It is stated by many that the consumers of these imported goods are the losers.
Another, reason is that U.S. workers and unions are also affected by free trade is that "GATT will help production more freely around the world with all nations competing for investments" (Cobb, 967). "However in the U.S. real wages will continue to fall and unions will loose their remaining power" (Cobb, 967). While free trade hurts some U.S. industries and workers, it makes other country's industries flourish (Cobb, 967).
Another problem with free trade is that we would provide over sea jobs with the U.S. purchasing power. "If we practice what we preach about open trade, then an immense share of U.S. purchasing power will go to provide jobs over seas" (Kuttner, 293).
The next reason that American industries should be protected is Japan, Korea, and Brazil floods the world market with its cheap steel (Kuttner, 295). This is unfair to our country's workers. Because these countries just dump
View Full Essay
International trade, Trade policy, Economic ideologies, Economic theories, Protectionism, Free trade, Comparative advantage, Capitalism, Unemployment, Free trade debate
More Free Essays Like This