Free Trade In America

Decent Essays
Problem: Working class Americans experience difficulties in finding work as labor intensive jobs are moved abroad. At the same time free trade is beneficial for the global economy as a whole. Here we can see a clash in interests as the interests of those in developing countries are protected as well by the WTO and free trade tends to be beneficial for the economy as a whole. However, the problem is that 20% of the prime male working population between the ages of 25-54 are unemployed and this number is around 35% of those who don’t have a high school diploma. For marginalized groups such as African American males the teen unemployment is over 40% and that of young black men from the ages of 16-24 is over 30%.
Courses of action:
- Companies can be encouraged to locate their production processes in the US by implementing subsidies. In Europe for instance, it has
…show more content…
As tariffs would disadvantage free international trade it is important to focus on how much is possible regarding the WTO restrictions on barriers and tariffs.
The US might follow the course that Western European nations follow in decreasing the unemployment rate. Countries such as Germany have been using strategies such as job sharing and short time work to encourage employers to cut the hours instead of laying off their employees. This method has never been implemented in the US and could be quite successful.
- Training is another factor that could reduce the unemployment rate of low skilled workers. Training, however, is mostly offered by employers and not by the government. Often training is also offered to the most skilled and educated workers opposed to low skilled workers. Furthermore, the amount of money spent on training by the government only entails 0,4% of the American GDP, whereas, it is more than 10 times as high for countries such as Denmark, Germany and the
Get Access