Home
/
RELIGION & LIBERTY ONLINE
/
Does Free Trade Between Texas and California Cost Jobs?
Does Free Trade Between Texas and California Cost Jobs?
Jan 5, 2026 1:11 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
April Fools and April 15th
Just in time for April 1st and April 15th, let’s talk about taxes. On April 1st, the excise tax on cigarettes was increased dramatically—from $.39 to $1.01 per pack. It’s fitting that this occurred on April Fools’ Day, since it served to break President Obama’s campaign pledge not to increase “any form of” taxes on any family making less than $250,000 per year. Independent of breaking a campaign promise, such a tax is attractive for non-smokers since the costs are...
Acton Commentary: “Despotism – The Soft Way”
Sam Gregg marks the 150th anniversary of the death of Alexis de Tocqueville whose great work “Democracy in America” warned about the dangers of fortable servility. “The American Republic,” Tocqueville wrote, “will endure until the day Congress discovers that it can bribe the public with the public’s money.” Read mentary at the Acton website ment on it here. ...
Acton Commentary – “Earmarks: Don’t Mend Them, End Them”
In this piece John Pisciotta, a professor of economics at Baylor University, offers a number of sound reasons for getting rid of earmarks on appropriations bills, including their tendency to invite corruption. “Those who seek them are tempted to skirt the law to win favor with a legislator so as to be graced with an earmark,” he writes. “We should not be surprised that a handful of former members of Congress now receive free room and board at federal prisons.”...
Orthodox Christianity And Capitalism — Are They Compatible?
Kevin Allen, host of The Illumined Heart podcast on Ancient Faith Radio, interviews writer, attorney, and college professor Chris Banescu, an Orthodox Christian, about the economic, moral and spiritual issues surrounding the market economy. Kevin asks: Does the capitalist system serve “the best interests of Christians living the life of the Beatitudes?” Listen to Chris Banescu on Orthodox Christianity and Capitalism: [audio: Read “A Primer on Capitalism” on Chris’ personal Web site. He is also the author of two articles...
PBR: Rwanda and Reconciliation
This year April 6th marked the 15th anniversary of beginning of the genocide in Rwanda. Catherin Claire Larson, a senior writer and editor at Prison Fellowship Ministries, has written a new book called As We Forgive: Stories of Reconciliation from Rwanda, which focuses on how such wounds opened up fifteen years ago are being healed today. (Larson’s book is inspired by the award-winning film of the same name, which debuted in April 2008. Comment carried an interview with Laura Waters...
Market and Government Failure
An essay of mine appears today over at the First Things website as part of their “On the Square: Observations & Contentions” feature. In “Between Market and State,” I explore the dialectic logic of market and government “failure,” which functions in part to provide us with a false dilemma: our solution to social problems must lie with either “market” or “state.” I work out this logic in the context of the sub-prime mortgage crisis, and conclude that non-profits play a...
Acton Commentary: Religious Freedom Doesn’t Mean Religious Silence
The First Amendment rights of religious groups are under assault in the public square. As Kevin Schmiesing reminds us in today’s Acton Commentary, “History’s tyrants recognized the progression that some of us have forgotten: Where people are free to act according their conscience, they will demand the right to determine their political destiny.” Read mentary at the Acton Website ment on it here. ...
Happy Patriots’ Day
Patriots’ memorates the opening battles of the American Revolution at Lexington and Concord on April 19, 1775. It is officially celebrated in Massachusetts and Maine, and is now observed on the third Monday in April to allow for a three day weekend. Patriots’ Day is also the day upon which the Boston Marathon is held and the Boston Red Sox are always scheduled to play at home with the only official A.M. start in Major League Baseball. My Patriots’ Day...
A Quick Response to the Christianity Trailing Off Thesis
I recently received a request from a reporter to respond to the recent spate of studies and stories positing a decline in American Christianity. Here’s how I answered: Broadly speaking, it is silly to think of secularization as a linear process. The prominence of the Christian faith waxes and wanes during different historical periods. As Rodney Stark has pointed out, the old golden age of faith picture of antiquity is not nearly as strong as many believe. There is, however,...
PBR: The End of Poverty
This Sunday I’ll be giving a talk at Fountain Street Church on the life and work of Dietrich Bonhoeffer. His unfinished Ethics is a tantalizing work, full of insights and conundrums. Here’s what he writes in the essay, “On the Possibility of the Church’s Message to the World,” with regard to the church’s engagement in social justice: Who actually says that all worldly problems should and can be solved? Perhaps to God the unsolved condition of these problems may be...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved