The Bankruptcy of Free Trade Ideology
Michael Porter on the Charlie Rose Show last night talked about his fear that the United States is getting to be protectionist in its attitude on trade. I don't why academics like Porter are so committed to free trade ideology considering what is happening to this country in the recent economic crisis. The reason why America is so dependent on the unstable financial sector for growth is due the fact that it no longer produces anything. Also America's free trade economy has not really been that great for countries such as China,Germany, and Japan since they have become heavily reliant upon exporting products into the United States and are doing little to reform their own domestic economies. A larger tariff in the United States would allow it to develop a strong industrial base and make the European and East Asian countries invest more in creating a consumer economy at home.




