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Economist David Henderson argues that we should buy the cheapest goods available to free up capital for further spending.
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Three words that could help put Americans back to work made in America.
That's Diane Sawyer the star anchored my former employer.
-- Glenn -- no longer work there.
But the point she and ABC news were pushing that it would help Americans get jobs fully people bought things that were made in America.
Sounds right the people but economist David Henderson says it's nonsense nonsense Yahoo! did that it would create jobs.
Yes and not only does an economist David Henderson -- -- almost all economists business.
And the reason is we should buy things where they're cheapest that frees up more of our resources to buy other things and other Americans get jobs producing those things.
I mean if it's good to have by American why is it good to have by Alabama.
It was a good to have by Alabama and -- good to have bond Montgomery Alabama -- good by Montgomery Alabama you wouldn't get very good stuff from yeah but yeah reality.
I mean the whole has a huge part of history of mankind.
Is an increase in the division of labor.
And that division of labor goes across national boundaries and that.
Creates wealth and that creates jobs yes -- a similar vein a big thing is fair trade coffee this is that it cost much more money.
And on the label defined by this I'm doing good and I should enjoy -- with a warm feeling inside.
What you're doing is essentially paying a higher price.
First of innocent clearly higher quality and but some -- in poor countries get paid more that's a fair trade.
Yeah supposedly but by the way a huge part of that premium is taken by the bureaucracy that organizes this that doesn't.
Most of it doesn't go to the former.
And a better way to help those farmers is just to take the -- just -- what you -- bought anyway.
Take the premium you would have spent and give -- to those people.
Our let's do one more this is the big -- I mean sweatshop.
Free products.
Who could be against that.
Mean I'm for free trade.
But trade means you get the lowest price and might that mean your bias out from a -- the name itself does convey evil.
Bewkes.
Will intended people are upset when they travel to poor countries and see sweat shops were even children work.
-- -- -- -- Free trade they say causes this kind of century.
And yet you say it doesn't.
No in fact they're better off taking those jobs there are few cases were people working in those places are slaves and that's -- The vast merger will agree slavery and relatively -- but the vast majority of what we call sweat -- are people.
Choosing that over an alternative that's works yes and what people do the mistake Americans make is they think.
They would never work in a sweatshop.
And therefore they say these people shouldn't.
-- no -- offering those people Green cards.
Those people are stuck in those countries they are choosing their best.
Of a bunch of bad options and when you take away someone's best of -- options are worse off.
And they have done that a couple times after some senators in America complain.
Oxfam study kids who were laid off and Bangladesh.
-- they found the kids were often in prostitution prostitution are -- The person who tries to get you fired is not your friend.
So think about that next time -- -- sweat -- campaign and the fact is these these conglomerates that hire people in these countries whether it's ninety making shoes or whatever it is.
They pay a little more than a native -- I -- I have been notified in Honduras the average which outpaced three dollars and ten cents per hour.
Which seems low but most Hondurans earned less than two dollars and -- remorse these people.
We're agriculture now talk about swept and -- just one more clip on this note about -- fair trade that I'd like to play some.
Filmmakers who work with the auto industry came up with this public services.
These US no I -- its economy your closet.
I don't know where the guys most most of what.
Looked yeah.
Yeah academy who taught you took only like -- and cops.
You alright.
I learned by watching you.
And parents who drive foreign -- Have children drive forward cars.
And -- I hate even more he's the guy looks like me.
They really I think they're not just evil people they really believe there's serving America all right I'm not saying -- evil I think they're just thinking.
Mistakenly think that they're mistaken.
I mean the point is we should.
I actually come from a family has to foreign cars -- -- in Japan are probably made here but by Japanese companies and we try to get the best you we -- and that includes quality and we very much higher quality product from Japan usually.
And that frees up our income to spend and other things and we get better cars and by the way Detroit is motivated to compete more.
In Detroit got better because of -- -- petitions and the money that gets freed up.
Might create jobs here at home that's right and therefore more -- off.
Thank you David --
