[quote]BostonBarrister wrote:
[quote]BostonBarrister wrote:
Some of this thread makes my head hurt.
I have a difficult time seeing how unions give a net societal benefit. Ideally a union fights to protect workers. Reality is somewhat different. http://modeledbehavior.com/2011/02/23/unions-and-good-policy/
Unions do tend to be anti free trade. Free trade does provide a net societal benefit.
That said, there are costs from removing trade barriers, and these costs are often concentrated on relatively small groups of people. The same could also be said for technological innovation (which has displaced far more blue-collar jobs than has free trade).
Where Reagan (and Congress, and the states, and their respective successors) have failed is in addressing those concentrated costs in more effective manner. America needs to find ways to help displaced workers develop new skills and to encourage them to move to places where they can maximize the return on those skills (one of the hardest things about the closing of a factory is the depression of the local real estate market, which makes it difficult for workers to relocate (side note: this is one of the reasons why our current economy is so hard hit by unemployment - underwater homeowners can’t afford to move to where the jobs are).
The failure to provide this kind of help winds up wiping out many of the gains from trade, because those workers end up on the public dole. That’s where the effort should be focused - not in trying to fight free trade or technological innovation.[/quote]
[quote]pittbulll wrote:
Reagan failed on many fronts .
Free trade is not the way to go , fair trade is and I am aware it is a subjective point.
Why doesn’t the market thrive where their are the least restrictions . Somalia , Afghanistan. I will try and sum it up in few words .
Business needs the stability of a regulated society to thrive .[/quote]
Yes, you’re right. Anarchy is bad. You need the rule of law to have functioning markets. However, there is a distinct difference between anarchy and a market economy. The basics you need for a market economy are private property rights, courts to resolve disputes and enforce contracts and a police force to enforce the courts (you also need an army for border defense, but that gets a bit beyond what you need for a market).
However, none of that has anything to do with the general point on unions and free trade. With unions (particularly unions favored under law as in the U.S.), you generally have higher wages and benefits for the favored union members, along with higher unemployment for everyone else who would like to be employed, higher prices for consumers and an incentive for employers to move the production offshore (or to a non-union state - see the auto industry).
And the net gain to society from free trade is large - but diffuse. The costs are smaller - but more concentrated. It would make sense for us as a society to utilize some of the surplus on retraining and addressing the associated issues for those who are displaced.[/quote]
I lived through Reagan’s hatchet job on the Steel Industry, I am curious what industry or industries would you train hundreds of thousands men used to a high paying jobs.
There were all kinds of promises for retraining .
You can not do away with an industry as large and high paying as the steel industry and not punch a HUGE whole in America
Go to Youngstown OH,Flint Mich, any of those old steel towns and cities , see first hand the devastation Reagan created with no up side . These cities belong in Eastern EU