Chang Ha Joon said that if developing countries engage in free trade with the rich developed countries, their infant industries will be wiped out by the more efficient, more technologically advanced, more capitalized companies of the developed world. Can a kid compete with an adult at the workplace?
Hence economist Chang propose that developing countries engage in fair trade (govt subsidies, tarrifs, import quotas) for their infant industries that are important to the nation. Developing countries engaging in free trade with the developed world from the start will cripple much of their development efforts.
S'pore Taxis Would be Wiped Out with Free Trade
Taxi drivers in Johor, Malaysia can drive taxis just as good. Tiny S'pore is no problem for them. With cheaper cars & cheaper fuel costs, they can charge 25% lower fares in S$ & wipe out the taxi industry in Sillypore.
Hence it can be said that it is political boundaries that hinder free trade. Free trade in the taxi industry is a guaranteed ticket to the poorhouse for S'pore 's hybrid regime as its profitable govt-linked taxi companies will go bust.
No free trade in taxi industry with Malaysia.
Free trade in jobs wiping out Sillypore peasants
I'm sure there are cheaper foreign workers who can do a better job than sinkie peasants. However the hybrid regime who operates S'pore Inc safeguards its taxi companies & maximizes its profits elsewhere to the detriment of the local populace.
Local peasants are burdened with:
- family & children -- can't slave long hours unlike single foreigner
- reservist obligations -- away from work compared to foreigner
- 30 year mortgages -- need decent pay compared to foreigners lower pay & squeezing in rental premises
Unfair competition for masses of sillyporeans with those burdens have resulting in increasing crime & desperation into being illegal hawkers just to make ends meet. Hence free trade (foreigners can work easily in SG) is a guaranteed ticket to the poorhouse for Sillyporeans.
What the peasants need is fair trade but not when the hybrid regime continues to monopolize power.
No free trade to protect its taxi companies profits
but free trade in jobs to destroy the livelihood of the citizens.
Unfair if taxis from johor ply freely in SG to bankrupt its taxi fleet
but fair for foreigners with no/little burdens to bankrupt citizens (family, NS, 30year mortgage payment) in the job market.
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