Re:Trump Plans New Curbs on Chinese Investment, Tech Exports...
by rory096 on Tuesday June 26, 2018 @01:40PM
(#17402592)
Right. Trade is a Kaldor-Hicks improvement, not Pareto. Losers exist, though they could be theoretically compensated for their loss to create a Pareto-efficient outcome. The same is true of immigration and automation.
>(if at all - corporations might just take the difference as profit depending on the level of competition)
This doesn't make sense — if corporations 'absorb' that profit, consumers have no reason to purchase imports over domestic goods. Moreover goods with heavy competition from low-wage countries tend to have highly competitive markets, so the price is the marginal cost of production.
>This can be mitigated by income redistribution, funding for job skills retraining, and so on (although it kinda sucks to find yourself back at the bottom rung of a new field at 40 because you can't find job opportunities anymore) but, historically, these programs haven't received any funding, so it's pretty safe to assume they won't exist until proven otherwise.
Actually these programs tend to be well-funded but undersubscribed.
https://en.wikipedia.org/wiki/Kaldor–Hicks_efficiency
>(if at all - corporations might just take the difference as profit depending on the level of competition)
This doesn't make sense — if corporations 'absorb' that profit, consumers have no reason to purchase imports over domestic goods. Moreover goods with heavy competition from low-wage countries tend to have highly competitive markets, so the price is the marginal cost of production.
>This can be mitigated by income redistribution, funding for job skills retraining, and so on (although it kinda sucks to find yourself back at the bottom rung of a new field at 40 because you can't find job opportunities anymore) but, historically, these programs haven't received any funding, so it's pretty safe to assume they won't exist until proven otherwise.
Actually these programs tend to be well-funded but undersubscribed.
https://www.reuters.com/article/us-trump-effect-coal-retrain...
https://en.wikipedia.org/wiki/Trade_Adjustment_Assistance