Home
/
RELIGION & LIBERTY ONLINE
/
Does Free Trade Between Texas and California Cost Jobs?
Does Free Trade Between Texas and California Cost Jobs?
Aug 16, 2025 5:39 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
Audio: Samuel Gregg on the universal basic income
Last week, Facebook founder Mark Zuckerberg endorsed the idea of a universal basic e during mencement address at Harvard University. Samuel Gregg, Acton Institute Director of Research, joined host Drew Mariani on Relevant Radio yesterday to discuss the arguments for and against the idea, and whether it would even work as advertised. You can listen to the interview via the audio player below. ...
Understanding the President’s Cabinet: Trade Representative
Note: This is the post #19 in a weekly series of explanatory posts on the officials and agencies included in the President’s Cabinet. See the series introductionhere. Cabinet position:U.S. Trade Representative (USTR) Department: Office of the United States Trade Representative, which is part of the Executive Office of the President Current Representative:Robert Lighthizer Department Mission:“The Office of the U.S. Trade Representative (USTR) is responsible for developing and coordinating U.S. international modity, and direct investment policy, and overseeing negotiations with other...
What caused the Great Depression?
Almost 90 years have passed since the beginning of the Great Depression and yet most of us are still unclear on what caused America’s greatest economic collapse. The causes and precursors plex, of course, but there are a few factors that we should know about. In this brief video, economist Alex Tabbarok provides one of the best overviews of what exactly occurred during this troubling period in economic history. (If you find the pace of the videos too slow, I’d...
The DeVos budget: Toward a new paradigm of public education
“If school choice effectively functions as a standing critique of public education as well as being a potential solution to problems evident in the current system,” asks Hunter Baker in this week’s Acton Commentary, “how can public school advocates ever approve of an appointee like Betsy DeVos?” That question leads to others. What is the mission of the Department of Education? And if that mission is defined as advancing public education in the United States in a particular way, then...
The Importance of Incompetence
An illustration of the Peter Principle. Source: Wikimedia Commons. Public Domain. Today at Public Discourse, I argue that in addition to idealism and self-interest, petence needs to be recognized as a more important factor in politics: [U]nless we add petence as a category of analysis, we will tend to view every victory for our own team as a triumph of justice or freedom or equality (idealism), and every failure the result of deep and convoluted corruption (self-interest). This is not...
6 Quotes: Peter Augustine Lawler on virtue
Peter Augustine Lawler died last week at the age of 65. Lawler, who referred to himself as a “postmodern conservative”, was a distinguished political philosopher and public intellectual who frequently wrote about the role of virtue in the modern (or postmodern) world. In honor of his passing, here are six quotes by Lawler on virtue: On virtue and knowing: “Virtue is the action that flows from knowing: 1. Who we are. 2. What we’re supposed to do. Doing, as Aristotle...
Video: Lawrence Reed on real heroes
On May 18th, the spring 2017 Acton Lecture Series wrapped up with an address from Lawrence Reed, president of the Foundation for Economic Education. Reed’s talk was based on his recently released book,Real Heroes: Inspiring True Stories of Courage, Character, and Conviction. We’re pleased to share the video of his lecture below. ...
Every man is the architect of his own fortune
Boys’ Latin students hard at work. Black and Latino young men from munities show statistically low high school graduation and attendance rates. One group of young men, however, is proving that that academic underperformance doesn’t have to be the norm. These e from a poor black neighborhood, but they’ve been taught a special skills most American students lack: learning the Latin language. They’re students at Boys’ Latin of Philadelphia Charter School where they’re required to study a language many would...
A rift with ‘Europe,’ or just the EU?
After last weekend’s G-7 and NATO summits, leading figures would have the world believe that transatlantic relations are rougher than ever, literally as well as figuratively. The media have highlighted such ephemera as President Trump’s allegedly pushing the prime minister of Montenegro and his white-knuckle handshake with French President Emmanuel Macron. European politicians, however, speak in starker tones about the twin threats of a Trump presidency and an impending Brexit. German Chancellor Angela Merkel announced her despair at a campaign...
Bad economic policies create moral problems
In Europe, the answer to one bad economic policy seems to be another bad economic policy. However, if such failures intersect in the right way, the problem goes from being a fiscal to a moral problem. Take the issue of“eurobonds,”a concept wholeheartedly supported by newly elected French President Emmanuel Macron. Think of eurobondsas the redistribution of debt. The mechanism essentiallypools the collective debt of itsremaining 27 members at the EU level. Eurobondswould allow nations like Greece to borrow more money...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved