Thursday, December 27, 2007

Canadian Centre for Policy Alternatives is oh so wrong

The new study by the Canadian Centre for Policy Alternatives argues that free trade has only benefited the elites. Their reasoning is that most big cooperations in Canada have seen their profits raise while reducing their total workforce. This analysis is very flawed. Payrolls on most big companies usually decrease with the invention of new technology. This is okay, new jobs are created and economic output of a nation is increased. This trend is seen in the numbers. Employment and wages in Canada are up! You can say that this is not strictly due to free trade, I would agree with you. However, it is the Centre for Policy Alternatives that's claiming all economic activity is due to trade.

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