Tuesday, May 5, 2015

Elizabeth Chun chapter 12 question 6

The section I found most interesting in the chapter was the one discussing how trade creates losers. It causes many people to get laid off and be out of work when people in developing countries are the ones making our clothes and shoes. There seems to be a culture here of people wanting to mainly buy things in made in America so that people here can have jobs, even though when the jobs are being done in other countries products sold in the United States become cheaper making consumers richer and resulting in growth of the economy. But this makes me wonder if these developing countries that can pay workers just a few dollars for a whole days worth of hard labor will stay under developed. If in the future the countries further develope  and begin to pay their workers more money, will that harm the U.S. by making prices of imported goods increase and in result more expensive for us  slowing the growth of the economy?

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