There has also been a flow in incoming and outgoing investments. It is a development that made the citizens enjoy the fruits of life and experience all the items and goods coming from various countries. When you go to American market its like traveling to different countries because of the availability of foreign goods. Continued addition to the income and output drives US to achieve their economy at its best. Technological advances also help surpassed the recession aftermath during the early 90’s. The Federal Reserve Bank of Dallas became sound as the electronic payments were introduced.
Astonishingly, the openness of the economy had doubled the country’s per capita income and had created over 50 million jobs. This is contrary to the critics of free trade that local market will fade and jobs will decrease. According to them, globalization is a monumental failure created for the self-interest of industrialized and developed nations that were aiming to maximize and surge its economy at its best. The statement that the goal of the state is to protect individual rights and freedoms seems to be a misguided statement if we consider the existence of big and multinational corporations.
The reason is that it destroys the small businesses and it limits the emergence of new comers. Not only that, it also creates adverse effect on ones culture as the influx of products and different goods from different countries diffused someone’s nationality. It brings forth cultural alienation and social disassociations through the influx of products coming from foreign markets imbibe with foreign values. Nevertheless, the US economy is soaring. It ranks as the world’s greatest exporters as it sells a total of $1. 3 trillion a year to the rest of the world.
Top of the list of that comprises the exports products are personal computers followed by bulldozers, movies and financial aids and assistance. The import goods wee often cheaper. In addition, the variety of goods and products offers greater quality since there is inherent competition that is of course favorable to the consumers. This is why the free trade is becoming the consumer’s best friend. Additional paychecks and benefits were also received by the workers as the increasing economic productivity helps promotes jobs. As mentioned earlier, although the US ranked as top exporter.
It is a misconception to attribute their gain with the exports because the fruit of the free trade really lies in the imports. This is explained by the end goal of the economic pursuit and that is consumption. Since consumption comprises one of the factors of economic growth, increasing consumption would provoke an increase in the investment level of the country. The stake in free trade is at large, but being open gave way to the goal of the liberalization. The state should not intervene in the workings of the market; price and wage controls would be unnecessary because the market itself is a self-adjusting machine.
Doing otherwise would severely cause prices of basic goods to skyrocket, encourage economic recessions and worst heighten rebellions. Departing from Protectionism enables Americans to experience the high standard of living, better goods and services, and cheap competitive products- the real essence of Free Trade.
Cox, W. M & Richard Alm. (2002). The Fruits of Free Trade: 2002 Annual Report. Federal Reserve Bank of Dallas Website. Available from: http://dallasfed. org/fed/annual/2002/ar02. pdf