I’m reading the transcript from some CNN show last night, where the host (Dobbs) had a spirited debate with one of his guests (Glassman) about the offshoring of jobs by big American companies. Glassman, who sees this as a good sign, capitalism in action, frequently repeats that “trade benefits both sides”. Therefore, America must (axiomatically!) be benefitting from the outsourcing.
My economics background isn’t great, so I can’t argue with his axiom; nor, really do I want to. I agree. Trade does benefit both sides. What I have a problem with here is how he defines the sides. According to him, big American companies profitting is good for America. The sides in this particular trade are American firms on one side, and foreign labour on the other. Explain to me how this benefits the American workers who get laid off?
“The economy” is an abstraction. It’s a collection of statistics concerning the flow of wealth, productivity, and such things. Saying that “the economy is healthy” says something about statistics; it doesn’t necessarily say anything about people.