Home
/
RELIGION & LIBERTY ONLINE
/
Does Free Trade Between Texas and California Cost Jobs?
Does Free Trade Between Texas and California Cost Jobs?
Dec 27, 2025 12:24 AM

There is something about an election year that causes otherwise rational people to lose all economic sense. Take, for example, the issue of free trade. The opposition to free trade on both sides of the politial spectrum is baffling. Yet progressives seem particularly confused, seeming to hold two opposing views on trade at the same time.

“Have you ever wondered if you are a progressive?” asks economist Scot Sumner. e up with a two-part test. If you believe in both of the following propositions, then you qualify as a American progressive, circa 2016.” His propositions are:

Proposition #1: Free trade with low wage countries like Mexico steals lots of jobs from American workers. There is no way a Mexican-American worker paid $7.25/hour in El Paso pete with an actual Mexican worker making $3.50/hour in Ciudad Juarez. NAFTA led to a giant sucking sound of jobs flowing south across the Rio Grande.

Proposition #2: Free trade between Texas and California does not cost jobs. A Mexican-American worker making $15 hour in Fresno can pete with a Mexican-American worker making $7.25/hour in El Paso, because there are studies “proving” that lower minimum wages in one state do not steal jobs from neighboring states.

In other words, trade steals jobs when it occurs across international boundaries, but not when it occurs across domestic boundaries.

Eventually, though, the progressives will find they can’t deny economic reality. Sumner predicts that “the very same progressives that rely on the Card and Krueger studyfinding no employment effects from minimum wage differentials in neighboring states, will eventually demand a higher national minimum wage to prevent an petition’ in state minimum wage differentials.”

I fearhe’s right. The $15 minimum wagemovement is going to harm the poor in states like California, which will “require a federal solution” to restore national “wage equality.” Progressives will push for theminimum wage increases that hurtthe poor in a handful of states to be spread across the country — thereby hurting low-skilled workers across the country.

No, it doesn’t make any sense. But that what happens when noble intentions are allowed to trump sound economic reasoning.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Daniel Hannan addresses Greta Thunberg’s ‘Manichaean’ views
The sight of teenage Swedish climate activist Greta Thunberg setting sail today for the United States has dominated global headlines. The 16-year-old, who is taking a year off school to demand a radical reorganization of the global economy, plans to attend the UN’s climate action summit in New York on September 23. As she prepared for the two-week cruise, she warned ominously, “There are climate delayers who want to do everything to shift the focus from the climate crisis to...
Europe is (again) in economic trouble
With some Americans wondering whether the United States is headed for a recession, it’s worth looking across the Atlantic to see what is happening to the economies of Western Europe. Alas, there are many indicators that much of the old continent is headed, yet again, for a significant economic slide. The economy to watch is Europe’s largest. Germany’s unemployment rate ticked up in July, and industrial production and factory orders declined in June. That is bad news for an export-orientated...
The cultural mandate and the final frontier
“Space,” proclaimed the memorable opening to the original Star Trek series, is “the final frontier.” The image of the frontier, and its historic importance to Americans especially, has been part of our national discourse since at least historian Frederick J. Turner’s famous essay, “The Significance of the Frontier in American History.” I reflected on the significance of Turner’s thesis for space travel, and Martian colonization in particular, in an essay a few years ago on the hit film The Martian:...
If you want to help people, is socialism the answer?
About a third of Americans today believe socialism is a form of “social kindness” by the government. But true socialism isn’t the social safety net, but rather when the government controls most prices, businesses, property, and other aspects of economic life. As this video by PolicyEd explains, the historical record of socialism has been a wreckage of stagnating economies and human rights violations. The truth of a hundred years of hard experience is that people do not prosper in socialist...
Acton Line podcast: Prince Harry’s population bomb; A doctor diagnoses Medicare for All
In a recent interview for Vogue, Prince Harry declared to British anthropologist Jane Goodall that he and Meghan plan on having only two children, due to environmental concerns. Alarmist predictions about the results of overpopulation is nothing new, of course. Even Goodall herself said in 2010, that “[i]t’s our population growth that underlies just about every single one of the problems that we’ve inflicted on the planet.” So, is earth really overpopulated? And will having less children save the planet?...
The EU shuts citizens out of abortion funding policy
When nations rejected the European Union out of fear it would not be accountable to EU citizens, politicians unveiled a new proposal: a citizens’ initiative known as the European Citizens’ Initiative (ECI). When a broad cross-section of EU citizens support an issue, they can bring it to politicians’ attention through a successful ECI – unless those politicians ignore it, as the European Council just did to an ECI intended to rein in EU spending on controversial causes. Roger Kiska analyzes...
Drucker on the church that puts economics in perspective
This is the second in a series of essays on Peter Drucker’s early works. In The End of Economic Man, Peter Drucker was impressed (not pleased, but impressed) with the ability of fascists munists to gain the support of millions of people by offering an alternative to economic status within a society. In both Nazi Germany and Soviet Russia, a person might not have status within their profession, but he or she could have great status and possibly some real...
Video: Lawrence Reed on modern parallels to the fall of Rome
It’s not unusual to hear modern-day America (and more broadly, the modern pared with the late stages of the Roman Republic, which crumbled and gave way to totalitarian rule by caesars. But is parison valid? On August 8, the Acton Institute ed Lawrence Reed, president of the Foundation for Economic Education, to talk about that topic as part of the 2019 Acton Lecture Series. We’re pleased to share the video of the event with you below. ...
Trump backs off his decision to tax Bibles
Is President Trump finally beginning to understand how tariffs harm Americans? On Tuesday Trump said he was backing off his September 1 deadline for 10% tariffs on some Chinese imports. “We’re doing this for Christmas season, just in case some of the tariffs would have an impact on U.S. customers,” Trump told reporters. “Just in case they might have an impact on people, what we’ve done is we’ve delayed it so that they won’t be relevant to the Christmas shopping...
Mass shootings and the vocation of hero
If you wonder why there are so many mass shootings in America lately you might start by asking why you don’t know the name of Leo Johnson. Seven years ago today, Johnson, the operations manager for Family Research Council (FRC) was temporarily manning the front desk at the organization’s Washington, DC headquarters when a terrorist entered with a handgun and 100 rounds of ammunition. As the shooter drew his weapon and began firing, Johnson charged the man. Although Johnson was...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved