

How our economy works (and doesn't work), in words and pictures - Lavinski
http://economixcomix.com/home/tpp/

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awptimus
Complaint 1 isn't a problem with free-trade, it's a problem with a treasury
issuing debt. If the treasury ceased to issue new debt, then this "problem"
with free-trade goes away. This "problem" is not bidirectional. It does not
affect both sides identically. If it did, the "problem" would cancel out. So
don't blame free-trade for increased debt issuance. Just because they raise
your credit card limit doesn't mean you need to max your your card.

Complaint 2 is also not a problem with free-trade. If China undervalues its
currency -- by printing money as the comic states -- to make its products
cheaper and therefore not play "fair," imagine the converse: the US starts
printing money out he wazoo. Nope. Not a good idea. No one would suggest that,
and everyone would warn against it. It would lead to increased inflation,
which is not good. So if it's a bad idea for the US but a good idea for China,
what is the explanation for that? There isn't one. China is engaging in an
enormous monetary scheme that's almost certainly not beneficial in the long
run, to change a statistic (current exchange rate) and coax the US into buying
cheap goods for a while. Imagine if China maxed this idea out: just gave us
everything for free. Yea, doesn't do them any good, and comes at a huge cost
for them. This is a very poorly thought out comic.

Complaint 3 is just very odd. It doesn't even attempt to show what is meant by
if the "business" goes to Guatemala. How does the math change? If comparative
advantage maths say A should make X and B should make Y, what on earth does an
organizational structure and trademark name have to do with the production?
What in blazes? Is A no longer able to make X because the Y business moved to
where B lives? I'm done wasting my time with this.

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holograham
There are a lot of misconceptions with what "free-trade" means in our current
form. The US does not have anywhere close to free-trade (and hasnt for a long
long time).

The author is correct on the main premise that trade treaties and government
interactions manipulate the markets. Most free-trade economists are adamant
that there should be as little government interaction in trade as possible
(but important to note that this is not ZERO government interaction).

Overall the author has the classic problem with understanding the difference
between "wealth" vs. money. (Paul Graham's Essay on Wealth would be a good
starting point).

Trade deficits are extremely overblown. I cannot imagine a better deal than
the US shipping pieces of paper over to countries in exchange for cars,
electronics, food, services, etc. We get wealthy by exchanging intrinsically
useless pieces of paper for hard goods and services that make our life better.
I would challenge the author to compare a middle class (or even poor) American
to a middle class Chinese life. Not even close.

~~~
MetaCosm
I agree with the core premise that trade negotiations shouldn't be done in
secret, nor fast-tracked. That said, nothing in that comic really "convinced"
me, it seems more like a place to fly his personal political beliefs than make
a coherent point. Just seemed all over the place.

