Steven Landsburg, an economist at the University of Rochester, wrote the following in an article in the Wall Street Journal: Free trade is not only about the right of American consumers to buy at the cheapest possible price; it's also about the right of foreign producers to earn a living. Steelworkers in West Virginia struggle hard to make ends meet. So do steelworkers in South Korea. To protect one at the expense of the other, solely because of where they happened to be born, is a moral outrage. How does the U.S. government protect steelworkers in West Virginia at the expense of steelworkers in South Korea? Is Landsburg making a positive statement or a normative statement? A few days later, Tom Redburn published an article disagreeing with Landsburg. Redburn argued that caring about the welfare of people in the United States more than about the welfare of people in other countries isn't "some evil character flaw." According to Redburn, "A society that ignores the consequences of economic disruption on those among its citizens who come out at the short end of the stick is not only heartless, it also undermines its own cohesion and adaptability." Which of the two arguments do you find most convincing?

Short Answer

Expert verified
Landsburg makes a normative statement arguing for free trade based on moral grounds, while Redburn makes a normative statement about societal responsibility towards its citizens. The choice of the more convincing argument is subjective and varies depending on individual values.

Step by step solution

01

Analyzing Landsburg's Statement

Landsburg is stating that the U.S government protects steelworkers in West Virginia, perhaps through things like tariffs, subsidies or other protectionist measures. These measures can make imported steel more expensive, which can help domestic steelworkers but at a cost to foreign ones. It's a normative statement, as he's expressing an opinion that it's morally wrong to favor one group over the other because of location.
02

Analyzing Redburn's Statement

Redburn, on the other hand, is arguing that a society must consider the impact of economic disruption on its less fortunate members. While this may seem to contradict free trade, it's essentially another part of the argument around globalization. He's not labeling caring about the welfare of people in the U.S more than people in other countries as a 'flaw', he's pointing out the social consequences of ignoring the economic disparity. Redburn’s statement can also be considered normative because he recommends what actions society should take.
03

Forming an Opinion

The task of forming an opinion is subjective and depends on the individual's values. Some individuals may be convinced by Landsburg's moral argument for a right to earn for everyone, irrespective of where they are born. Others may agree with Redburn's argument that a society must take care of its members and not undermine its own cohesion and adaptability. This can be considered as choosing between cosmopolitanism (world is one community) and nationalism/communitarianism (giving priority to your own country/community). Each argument has its merits and demerits, and the task of forming an opinion depends upon individual value judgment.

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Most popular questions from this chapter

Former President Barack Obama once described a trade agreement reached with the government of Colombia as a "win-win' for both our countries." Is everyone in both countries likely to win from the agreement? Briefly explain.

(Related to the Apply the Concept on page 312 ) According to an opinion column in the New York Times, because of attempts to make it more difficult to import catfish into the United States, many Vietnamese businesses that export catfish shifted from exporting to the United States to exporting to China. Briefly explain who gained and who lost as a result of this adjustment by Vietnamese businesses resulting from U.S. trade restrictions.

In 2017 , shortly after President Trump took office, the U.S. Department of Commerce considered imposing tariffs on European steel companies it accused of dumping steel on the U.S. market. An article in the Wall Street Journal quoted Secretary of Commerce Wilbur Ross as asserting, "A healthy steel industry is critical to our economy and manufacturing base, yet our steel industry today is under assault from foreign producers that dump and subsidize their exports." What is dumping? If the United States imposes tariffs on imports of steel from Europe, briefly explain who is likely to gain and who is likely to lose.

What is globalization? Why are some people opposed to globalization? What is protectionism? Who benefits and who loses from protectionist policies? What are the main arguments people use to justify protectionism?

The United States produces beef and also imports beef from other countries. a. Draw a graph showing the demand and supply of beef in the United States. Assume that the United States can import as much as it wants at the world price of beef without causing the world price of beef to increase. Be sure to indicate on your graph the quantity of beef imported. Assume that the world price of beef is lower than the U.S. price. b. Now show on your graph the effect of the United States imposing a tariff on beef. Be sure to indicate on your graph the quantity of beef sold by U.S. producers before and after the tariff is imposed, the quantity of beef imported before and after the tariff, and the price of beef in the United States before and after the tariff. c. Discuss who benefits and who loses when the United States imposes a tariff on beef.

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