Sunshine wrote:
Most economists know that the more free that international trade is, the richer all of the countries that are involved in this trade will be. However, for individual workers in these countries, some will be better off and some will be worse off. The net result for individual workers as one big group will be that they are better off. This is great for those that are better off, but bad for those who are worse off. Those workers that think they will be worse off if CAFTA is approved are naturally quite vocal, and thus the politics and strong feelings seen now in Costa Rica. No businesses or workers like competition, or more competition. In Costa Rica the workers that have the most to lose are the government workers that work for monopolies like ICE, Racsa, the electric company, etc. Like nearly all government monopolies around the world, they are overpaid and underworked. There is one group that nearly always benefits from increased competition, and that is the consumer. Although CAFTA is far from being real free trade, it is a big step in that direction, and consumers will undoubtedly benefit.
If most people are out of work, there will be relatively few consumers who will benefit.
