Aggregated China Media News & Blogs



Trade Displacement and Government Assistance

Aggregated Source: China Hearsay
March 1, 2007|

The following post was designed to catch my eye:

The Amateur Economist & Curmudgeon Blog: Federal Aid Does Little For Free Trade’s Losers

Issue: should governments be helping people out that lose their jobs because of economic dislocations caused by international trade?

Initial reaction: why not? I disagree with the original post, which I think is alleging that a special health insurance subsidy is akin to having “subsidized coopers and wheelwrights”. Not sure how providing an insurance subsidy is keeping obsolete professions around, but maybe I’m missing something here.

Subsequent reaction: now that I think about it, why the hell does this poor mother who lost her job (see the original post) need this subsidy in the first place? Because the U.S. health care system has fallen and can’t get up, it’s a disgrace. If we had a reasonable system in the first place, this woman would not have to worry about health care after losing her job.

Last word: this is all about retraining/education, health care, and unemployment insurance. This kind of stuff needs to be fixed for everyone, not just those who lose their jobs because of international trade patterns. As usual, the Wall Street Journal and others are missing out on the big picture.



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