Is a Fair Trade Policy Superior to a Free Trade Policy?
He believes fair trade policies are needed to protect the poor from the rich. On the other hand, Gary Hufbauer argues for free trade; stating that it is a superior policy because it can benefit everyone in the developed and developing world. I agree with Joseph Stiglitz in this matter, because I believe fair trade is the best policy for the business world today. When people speak of globalization they only speak of the “positives. ” They say free trade has increased the American household income by lowering costs of products and this was possible because labor costs were cut.
Joseph Stiglitz speaks of the other side of globalization. He states Americans who used to work these low skilled jobs have lost their jobs and are having a difficult time finding employment. Not only that, but the workers in these countries are also suffering because the work environment isn’t safe and they are underpaid. The unemployment rate in the United States has been increasing over the past 30 years. Factories have been closing and businesses have permanently shut down all over the U. S. Many Americans have packed up their belongings and moved to other areas to find work.
In the article Can the Midwest Regain its Economic Clout, by Richard Longworth, it says places like Dayton, Cleveland, Detroit, and St. Louis have seen a decrease in their population because many have left to find work. These areas have lost anywhere from 40-60% of their populations. I understand from a business point of view globalization is a good way to make profit by keeping the cost down and individuals in other countries have work, however, the environment isn’t always safe and they are getting paid next to nothing.
Meanwhile, in the United States, so many people are struggling to find a job and keep their families financially afloat. I believe if companies want to send the work overseas, they have to make fair trade rules. The working conditions need to better and so does the pay. This way both the rich businessmen and the poor workers benefit. I also believe that maybe not all the work from one company should be sent overseas; send some work there and keep some here, this way more people will benefit I think fair trade is the morally just way to conduct business.
Not only will Americans benefit, but so will the workers in developing countries. Most importantly this would keep the rich from getting richer and the poor from struggling to keep afloat. I believe this could really help close the gap between the two. It would also help lower the unemployment rate in the United States and will hopefully bring up the average household income. Fair trade will build a strong foundation and a sense of camaraderie with developing countries.