Democrats Turn Protectionists
1. What might explain the candidates’ and Democratic Party’s reversal
position on free trade? Which voting constituencies would be most likely to
reject free trade? Why?
In order to explain quite a controversial position of the Democratic Party and
its candidates, it is necessary to pay attention when and why such a shift took
place. Firstly, it is obvious that the attitude of the candidate and Democratic
Party to free trade has changed in response to electoral attitude to free trade.
Naturally the party and Al Gore needed a possible wider support of electorate
and consequently they supported idea they supposed could provide more votes
for Democratic Party’s candidate. In such a way the reversal position
of the Democratic Party is basically explained by the factor of election and
the influence of voting constituencies on the party’s and its candidates’
views on different problems, including free trade.
As for voting constituencies, which rejected free trade, were and actually remain
those who suffered the most from the development of free trade. Basically these
are those branches of industry which are the least competitive in both national
and international markets. For instance, steel industry, deprived of financial
barriers protecting national market from external expansion, would probably
be ruined since steel companies operating in different countries of the world
could supply the US economy with cheaper products. To prove it would be enough
anti-damping processes against Russian steel companies. The same situation is
observed in other branches of the US economy that are very weak compared to
its international competitors, basically this is labor-intensive and ‘dirty’
production. Consequently they would not support neither free trade nor the party
that stands for the development of free trade since the latter lead them to
ruin.
2. What leverage do trade unions have in persuading Al Gore and other Democratic
candidates to pay attention to their anti-free-trade position? Explain why these
particular unions might be particularly powerful?
Traditionally trade unions are quit a significant power in the US since, being
a democratic country, the US have a well developed system of protection of workers
through trade unions. In fact the opinion of workers promulgated by trade unions
is very important and Democratic candidates may be informed about their position
in different ways from direct communications during meetings of trade union
leaders and the candidates to public protests. In fact the problem is that nowadays
the position of workers is far from perfect, moreover, layer of society may
be considered as the most unstable and consequently it can be easily provoked
to radical means of achievement of their goals through public protests or in
the worse cases riots, etc. As a result the role of the auto workers, the steelworkers,
the machinists is very important and historically they are very influential
because initially these industries provided a rapid progress of American economy
and were and to a certain extent remains its basis.
3. What tradeoffs do Al Gore and other Democrats face in accommodating labor?
Explain.
In the situation when the process of globalisation gets to be more and more
powerful, the only way for the Democratic party to accommodate labor may be
the attempt to protect the weakest points of American industry from international
expansion through some additional financial barriers and state support. It means
that the state could support the industries that particularly needed to be protected
and develop free trade in areas where American companies are particularly strong.
In such a way the workers turn to be artificially supported by state while free
trade profitable for the US can progress.
4. How can US manufacturers compete with foreign producers? Are they doomed,
as suggested by the president of the United Steelworkers of America? Explain.
Obviously free trade is a very serious challenge for US manufacturers because
some of them, as it has been pointed out above, are not very competitive in
the international market and their position would be significantly deteriorated
if the national market was open for international expansion. In such a situation
the president of the United Steelworkers of America is probably right concerning
manufacturers that are based on labor-intensive production and which are harmful
for environment, like steel industry. In fact such manufacturing tend to move
from developed countries into developing ones, while manufacturing focused on
new scientific and technological achievements progress rapidly in developed
countries and will gradually substitute traditional industries in developed
countries, including the US.
5. Are the Unions and their members right to be concerned about the effects
of free trade policies? What are these effects that they are concerned about?
Who would be helped and who would be hurt if the unions get their ways on trade?
Explain.
In all probability the most appropriate answer for this question is very controversial
but nonetheless it should be said that the Unions and their members are primarily
concerned about their own interests and it is their natural reaction to protect
themselves from complete ruin because they cannot survive in the market where
their products are sold along with the products from other countries where labor
force is much cheaper and production expanses are lower that eventually effects
the price of the final product. In such a situation the consumers would definitely
prefer cheaper products, which are about the same quality American manufacturers
can supply. On the other hand, objectively they could not survive independently
in the market. As a result state, supporting the unions and manufacturers, helps
them survive and at the same time affects American economy at large because
such a support needs financial aid, which cannot provide any revenues, and it
also affects other manufacturers who pays higher price for local products and
make their products more expansive and less competitive. Thus, there is a dilemma:
either limit free trade and support manufacturers that retard the development
of the national economy at large, or develop free trade and ruin them that will
increase social tension within the country.
Bibliography:
1. Gomory, R.E. (2002). Globalization: Causes and Effects. New York: Touchstone.
2. Weiler, J. (2002). The EU, the WTO, and NAFTA: Towards a Common Law of International
Trade. New York: Guilford.


