Can you envision the impact of a good trade agreement?

[ProSense]

Dean Baker can:

<...>

It is possible to envision a trade agreement that would reduce inequality. If a deal focused on opening the doors to more foreign doctors and other highly paid professionals, it would lead to lower incomes for many in the top one percent and lower cost health care, legal services, and other serviced provided this overpaid group. We could also open the door to low-cost generic drugs, saving tens of billions of dollars annually on prescription medicine.

Trade agreements can also be an avenue for reducing our chronic trade deficit. If we used a deal to negotiate a drop in the value of the dollar against the currencies of our trading partners, it could move us toward balanced trade. If we were to eliminate the trade deficit completely, it would directly create more than 4 million jobs, the bulk of which would be relatively high-paying manufacturing jobs. Adding in the indirect jobs created from these workers' spending, the increase in employment would be over 6 million, getting us most of the way back to full employment.

- more -

http://www.smirkingchimp.com/thread/dean-baker/53892/president-obamas-inequality-story

[msongs]

1. maybe, if they weren't all negotiated in secret to avoid public scrutiny nt

[djean111]

2. From the same article.....Dean Baker can envision a good trade agreement, but the TPP is not it -

There are some items on President Obama's agenda that push in the wrong direction, most notably his plans for the Trans-Pacific Partnership (TPP). This is wrongly billed as a "free-trade" agreement. In reality it has very little to do with free trade.

The TPP is about imposing a regulatory structure that will give corporations more power over the political process. It will make effective health, safety, and environmental regulation more difficult. It may also shield the financial sector from efforts to rein in the sort of abuses that led to the financial crisis. And, it will make drugs more expensive. The TPP is about redistributing income upward; it has no place on a serious inequality agenda.

Baker is certainly not cheering on the TPP - he is envisioning a proper trade agreement. Not the TPP at all.

So - Can you envision the impact of a good trade agreement? I sure can, and so can Dean Baker.
Let's see one. The TPP ain't it, that's for sure!

[ProSense]

3. Well,

The TPP is about imposing a regulatory structure that will give corporations more power over the political process. It will make effective health, safety, and environmental regulation more difficult. It may also shield the financial sector from efforts to rein in the sort of abuses that led to the financial crisis. And, it will make drugs more expensive. The TPP is about redistributing income upward; it has no place on a serious inequality agenda.

...his comments are still speculative since he hasn't seen the TPP.

On an unrelated note, this is a fascinating statistic about the minimum wage.

The days are long over when minimum wage workers were high school kids from middle-class families picking up spending money working after school. The workers who will benefit from a minimum wage hike are overwhelmingly adults, many of whom are supporting children. The higher minimum wage will also put a substantial dent in the poverty numbers, reducing the share of the population in poverty by 1 to 2 percentage points, close to 5 million people.

The Tight Link Between the Minimum Wage and Wage Inequality

by Lawrence Mishel

A higher minimum wage is an important way to address wage inequality, as the erosion of the minimum wage is the main reason for the increase in inequality between low-and middle-wage workers (in particular the 50/10 wage gap, that between the median and the 10th percentile earner). This is particularly true among women, the group for whom the wage gap in the bottom half grew the most. As the figure below shows, two-thirds of the increase in the 50-10 wage gap can be attributed to the erosion of the real value of the minimum wage. [The 50/10 wage gap grew 25.2 (log) percentage points between 1979 and 2009 and that two-thirds of this increase (16.5 percentage points, or 65 percent of the total) can be attributed to the erosion of the minimum wage.] The paper this figure draws on usefully and appropriately captures the spillover impact of the minimum wage—the impact on those earning above the legislated rate. This finding makes sense, since it was in the 1980s that the minimum wage eroded the most, and that was the same time period when the 50/10 wage gap among women expanded greatly. The erosion of the minimum wage explains over a tenth (11.3 percent) of the smaller 5.3 (log) percentage point expansion of the 50/10 wage gap among men. For workers overall more than half (57 percent) of the increase in the 50/10 wage gap was accounted for by the erosion of the minimum wage.



- more -

http://www.epi.org/blog/tight-link-minimum-wage-wage-inequality/

Senator Sanders: A Victory for Workers
http://www.democraticunderground.com/10024400795

[madrchsod]

4. you know that ain`t going to happen

the overlords want to keep us humble and pliable