Even the Pro-Free Trade Paul Krugman
Via Matt Yglesias, Paul Krugman offers some thoughts that I think a fair number of Angry Bear readers will agree with:
First and foremost, the promise of export-led growth has failed in too many places. In particular, Latin America has signally failed to replicate Asia’s success: Latin nations have liberalized, privatized and deregulated, with results ranging from disappointing (Mexico) to catastrophic (Argentina). Open world markets, it seems, offer the possibility of economic development — but not an easy, universal recipe.
Meanwhile, competition from newly industrializing economies does hurt some workers in advanced countries. I could tell you how sensible government policies could minimize this cost, but since we don’t have those policies and aren’t about to get them, free trade is, in reality, a morally ambiguous issue. And someone in my situation has to acknowledge being in a particularly weak moral position, since they aren’t yet having newspaper columns written in Bangalore.