Message #55281

[MagicM]

Milo and Brad
IMO free trade works in favour of developing countries where labour costs are low and the hi tech, finance and export sectors in first world economies. But some countries still have protectionist policies so there is no level playing field while governments in countries like Australia are reluctant to prop up uncompetitive industries.

Free trade has lifted millions in third world countries out of poverty while doing the very opposite in rust belt areas of the West. Here in Oz the government is encouraging innovation start ups while investing in defence (i.e. a new fleet of submarines) to support local manufacturing - at a much higher cost! Until now we have relied on coal and iron ore exports to turbo charge the economy but as prices have fallen mining jobs have disappeared as well.

There is no doubt that free trade has boosted the world economy as a whole and this has driven the process of globalisation and accompanying mass immigration. But it has resulted in too many losers in western economies and too many challenges to social cohesion. Something has to give.