Why is “Free Trade” bad?

(FAQ: Frequently Asked Questions)

Why is “Free Trade” bad for the US economy? How does it cause
jobs to be lost in the US?

Free Trade is when goods made in one country can be brought into
another country, without paying any import taxes or limiting the quantity
of items being imported.

With Free Trade, an American company can move a factory to China, hire
cheap Chinese workers, and then bring the manufactured products back
into the United States to sell at any price the Americans will pay.

Once the factory has moved to China, the American factory worker no
longer has a job.

More Details

Free Trade can be very profitable for US corporations. Of course, there is
a huge downside to Free Trade.

Free Trade forces the American workers to compete directly with the
workers in low-wage foreign countries such as China..

The workers in many of these third-world countries make as little as
$60-100 or less per month.

With Free Trade, corporations can move factories to countries like China
and hire the cheap foreign workers, instead of paying the American
workers $2000-4000 or more per month..

By hiring the cheap foreign workers, the corporation makes a higher
profit. Of course, the corporation assumes that the American consumers
will keep buying the cheap imports from China.

But, common sense dictates that Americans need jobs in order to keep
buying the cheap imported goods and products. When American workers
lose their well-paying jobs, they have no income. They are forced to
look for a new job.

Many times, if they are lucky enough to get a new job, it is often a
lesser-paying job.

The only way to keep buying at the same level is to use a credit card,
refinance their house, etc. Even this is only a short term solution.

Eventually, the unemployed or underemployed worker will have to cut
back on his or her spending, lowering their standard of living.

Free Trade causes job losses to workers in prosperous countries like the
US, and lowers living standards for American workers.

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