From textbook economic books, Free Trade is good. But if the markets are actually Fair. With price fixing (essentially what subsidies do) then markets are skewed... at the end though... according to Textbooks, price fixing fails, and prices go back to market equilibrium. So, eventually their prices will go up to reflect some sort of equilibrium price.
Just as a side note... have anybody noticed that the rapid rise of China in the last 8 years coincides with China's entrance into the WTO?
Also this article was interesting...on February 2000 from Economic Policy Institute:
The High Cost of the China-WTO Deal: Administration's own analysis suggests spiraling deficits, job losses
Conclusion:
"The U.S. government's most comprehensive assessment of the costs and benefits of the China-WTO deal shows that the U.S. trade deficit with China would continue to increase for the foreseeable future, even under unrealistically optimistic assumptions. Even so, supporters still ask us to believe that the benefits from the agreement will be great, and that they will exceed its costs "in the short term." The available economic analyses and the recent experience of the United States with NAFTA strongly suggest the China-WTO agreement is a bad deal for the U.S. and its workers."
We all know what has ended up happening in the last 8 years. It's nice how charts and graphs work in Economic Text Books... sadly, in real life things take years to play out... and the consequences are dramatic.
-chuck22b
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