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Do you think that an expenditure of $30,000 on one dress for a single occasion is justifiable? As you construct an argument for or against, take into account what your opposition might say, and try to place the issue in relation to broader American social, economic, and political values

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Darryn D'Souza
Darryn D'SouzaLv10
28 Sep 2019

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Related questions

1. Who are the winners and who are the losers from "free trade"?

2. Why do economists believe that a tariff is better than an import quota? (Actually, most economists do not like either!)

3. Why is the "infant industry" protectionist argument perhaps valid for some situations?

4. What is one argument for and one argument against NAFTA?

5. Evaluate this statement: "If a country bans an import, smuggling is inevitable. We should welcome smuggling because it increases consumer welfare."

6. Suppose Country A can produce 200 toys or 400 pineapples per day, while Country B can produce 300 toys or 900 pineapples per day. Where do the comparative advantages lie? Should trade take place?

7. What is dumping? Why is this done?

8. Discuss this statement: "Free traders win the economic arguments, but protectionists (those who favor tariffs) often win the elections."

9. Do you believe that American consumers should boycott goods made by exploited workers in Less Developed Countries? Explain why this might or might not work.

Too Late to Compensate Free Trade’s Losers

CAMBRIDGE – It appears that a new consensus has taken hold these days among the world’s business and policy elites about how to address the anti­globalization backlash that populists such as Donald Trump have so ably exploited. Gone are the confident assertions that globalization benefits everyone: we must, the elites now concede, accept that globalization produces both winners and losers. But the correct response is not to halt or reverse globalization; it is to ensure that the losers are compensated.

The new consensus is stated succinctly by Nouriel Roubini: the backlash against globalization “can be contained and managed through policies that compensate workers for its collateral damage and costs,” he argues. “Only by enacting such policies will globalization’s losers begin to think that they may eventually join the ranks of its winners.”

This argument seems to make eminent sense, both economically and politically. Economists have long known that trade liberalization causes income redistribution

and absolute losses for some groups, even as it enlarges a country’s overall economic pie. Therefore, trade deals unambiguously enhance national wellbeing only to the extent that winners compensate losers. Compensation also ensures support for trade openness from broader constituencies and should be good politics.

Prior to the welfare state, the tension between openness and redistribution was resolved either by large­scale emigration of workers or by re­imposing trade protection, especially in agriculture. With the rise of the welfare state, the constraint became less binding, allowing for more trade liberalization. Today the advanced countries that are the most exposed to the international economy are also those where safety nets and social insurance programs – welfare states – are the most extensive. Research in Europe has shown that losers from globalization within countries tend to favor more active social programs and labor­market interventions.

If opposition to trade has not become politically salient in Europe today, it is partly because such social protections remain strong there, despite having weakened in recent years. It is not an exaggeration to say that the welfare state and the open economy have been flip sides of the same coin during much of the twentieth century.

Compared to most European countries, the United States was a latecomer to globalization. Until recently, its large domestic market and relative geographical insulation provided considerable protection from imports, especially from low­wage countries. It also traditionally had a weak welfare state.

When the US began opening itself up to imports from Mexico, China, and other developing countries in the 1980s, one might have expected it to go the European route. Instead, under the sway of Reaganite and market­fundamentalist ideas, the US went in an opposite direction. As Larry Mishel, president of the Economic Policy Institute, puts it, “ignoring the losers was deliberate.” In 1981, the “trade adjustment assistance (TAA) program was one of the first things Reagan attacked, cutting its weekly compensation payments.”

The damage continued under subsequent, Democratic administrations. In Mishel’s words, “if free­traders had actually cared about the working class, they could have supported a full range of policies to support robust wage growth: full employment,

collective bargaining, high labor standards, a robust minimum wage, and so on.” And all of this could have been done “before administering ‘shocks’ by expanding trade with low­wage countries.”

Could the US now reverse course, and follow the newly emergent conventional wisdom? Back in 2007, political scientist Ken Scheve and economist Matt Slaughter called for “a New Deal for globalization” in the US, one that would link “engagement with the world economy to a substantial redistribution of income.” In the US, they argued, this would mean adopting a much more progressive federal tax system.

Slaughter had served in a Republican administration, under President George W. Bush. It is an indication of how polarized the US political climate has become that it is impossible to imagine similar proposals coming out of Republican circles these days. The effort by Trump and his Congressional allies to emasculate former President Barack Obama’s signature health­insurance program reflected Republicans’ commitment to scaling back, not expanding, social protections.

Today’s consensus concerning the need to compensate globalization’s losers presumes that the winners are motivated by enlightened self­interest – that they believe buy­in from the losers is essential to maintain economic openness. Trump’s presidency has revealed an alternative perspective: globalization, at least as currently construed, tilts the balance of political power toward those with the skills and assets to benefit from openness, undermining whatever organized influence the losers might have had in the first place. Inchoate discontent about globalization, Trump has shown, can easily be channeled to serve an altogether different agenda, more in line with elites’ interests.

The politics of compensation is always subject to a problem that economists call “time inconsistency.” Before a new policy – say, a trade agreement – is adopted, beneficiaries have an incentive to promise compensation. Once the policy is in place, they have little interest in following through, either because reversal is costly all around or because the underlying balance of power shifts toward them.

The time for compensation has come and gone. Even if compensation was a viable approach two decades ago, it no longer serves as a practical response to

globalization’s adverse effects. To bring the losers along, we will need to consider changing the rules of globalization itself.

QUESTIONS:

a. According to Rodrik, why is it that "trade deals unambiguously enhance national wellbeing only to the extend that winners compensate losers?" Explain completely.

b. Rodrik draws a historical link between globalization and the "welfare state." Explain this link.

c. Rodrik mentions a previous proposal by Scheve and Slaughter called "A New Deal for Globalization." What was the essence of this proposal? What has become of it?

d. What is the "time inconsistency" problem and why is it relevant for Rodrik's argument?

e. In your opinion, what is one weakness in Rodrik's argument? Explain.

6. Though political pundits on television and radio inform the public, they also have to be concerned with

a. Entertainment value to increase their ratings.b. All of these.c. Making their audiences feel better about America.d. Being factually correct.

7. Social movements have been important sources of social, political, and economic change in the United States.

a. TRUEb. FALSE

8. A double standard exists on the part of advocacy organizations because issues facing advantaged subgroups get more attention than those facing disadvantaged subgroups.

a. TRUEb. FALSE

9. Contemporary political observers echo the two views of de Tocqueville and Madison in how they view the role of political groups.

a. FALSEb. TRUE

10. A national advocacy organization is an interest group

a. That only represents businesses.b. That informally represents broad groups of Americans who have similar interests.c. That represents all Americans whether they are powerful or not.d. That only represents minorities or people with less power in society.

11. The American people believe that justices on the US Supreme Court

a. None of these.b. Should be appointed for life.c. Should be elected and only for a 10-year term.d. Should be elected for life.

12. Regional, cultural, religious, occupational, and ethnic diversity all tend to increase the formation of political groups and social movements.

a. FALSEb. TRUE

13. In the United States, political parties are

a. Relatively rareb. Are a relatively accidental feature of the American historyc. None of thesed. Mentioned in the Constitution

14. Why are interest groups, political organiztions, and social movements so numerous in the US?

a. All of these.b. Because federalism and the separation of powers have created multiple points of access to political institutions.c. Because of the 1st Amendment, which protects speech. association, and the right to petition the government for redress of grievances.d. Because the way people are elected to Congress does not do a very good job of representing minorities, who have to find other ways of getting their needs met.

15. What is the margin of error for a sample of 1000 voters?

a. Plus or minus 3%.b. Plus or minus 1%c. Plus or minus 5%d. Plus or minus 2%

16. E.E. Schactschneider says about the interest groups that claim to work for poor people

a. That they may be making things worse for these people.b. That they do a good job even without handing out small benefits to attract people to their group.c. None of these.d. That they are able to accomplish a great deal even though the poor do not join those groups.

17. Why do the campaign staffs of presidential candidates pass up large states like California and Texas to concentrate on smaller states like New Mexico or Ohio?

a. The large states are just a few and there are more votes altogether in the small states.b. It is easier to persuade people in the small states.c. The large states are reliably red or blue, so the campaigns go after states where the vote is closer and they can take all of the votes even with a small win.d. The large states are just too expensive for campaigning.

18. Jackson notes that equality is generally defined as

a. Equality of process.b. Equality of opportunity.c. Equality of outcomes.d. Equality of results.

19. In an open primary, the voter can choose which primary election--Democratic or Republican--he or she would like to vote in.

a. TRUEb. FALSE

20. The women’s movement can be very active on an issue such as affirmative action in higher education, which afffects their more affluent members, but overlook welfare reform, an important issue for their more disadvantaged or marginalized members.

a. TRUEb. FALSE

21. It is sometimes called "first-past-the-post" and sometimes "winner-take-all," but this kind of election means

a. No matter how many votes are cast and how many candidates the one with the most votes wins.b. None of these.c. The candidates have to have run-off elections until one wins two thirds of the votes.d. The top two candidates have to have a run off election.

22. Public opinion matters because in a democratic system we believe that government policy should follow the public will.

a. TRUEb. FALSE

23. With regard to ideology, Americans

a. Tend to identify with a party by their mid 20s.b. Tend to choose a political affiliation early in life.c. Tend to stay identified with a political party consistently the rest of their lives.d. All of these.

24. Alexis de Tocqueville

a. Found few religious associations in America.b. Wrote at the time of the American revolution in the 1780s.c. Wrote his great book Democracy in America at a time when Americans were forming many interest groups and associations in the 1830s.d. Was appalled at the number of commercial and manufacturing associations he found in America.

25. According to Strolovitch, in judging the effectiveness of an advocacy organization which claims to represent the marginalized,what are the guiding questions we should ask?

a. How active for the intersectionally marginalized are they? Because without that the organization is a failure.b. What coalitions do they form? Because coalitions are the key to success.c. What institutions do they target and what coalitions do they form? Because the political activity is the most important barometer.d. How active for the intersectionally marginalizedn are they, what institutions do they target, and what coalitions do they form?

26. How do the two dominant political parties prevent minor parties from emerging?

a. By using their vast funds and media resources to disparage minor party candidates.b. By refusing to give successful third party candidates leadership positions in the legislature.c. By poaching popular third party candidates before they begin to help their party.d. By manipulating election rules in debates and public funding to discriminate against the minor parties.

27. Since 1836, the republic has been dominated by how many political parties at a time?

a. Threeb. Fivec. Oned. Two

28. As sample size increases, the margin of error

a. Is greater than or equal to the margin of error.b. Stays the same.c. Decreases.d. Increases.

29. Affirmative advocacy

a. Looks for over-represented and under-represented issues in setting the agenda for activityb. Actively seeks out coalitions and works with others at the state and local levelc. All of thesed. Has a proactive agenda

30. The cell-phone only population is likely to include more young people, which pollsters have to take into account

a. TRUEb. FALSE

31. One method that schools use to politically socialize young people is

a. Ask students to watch TV news.b. Tell students who to vote for.c. Ask student to participate in mock elections.d. Ask students to read newspapers.

32. In addition to the legislative branch, advocacy groups target the executive and judicial branches.

a. TRUEb. FALSE

33. The problem with opt-in internet panels is that

a. Participants self-select, leaving out significant sections of the public.b. All of these.c. They have a greater margin of error.d. They do not use scientific methods.

34. An example of an organization which claims to represent a large demographic group is

a. The National Association for the Advancement of Colored People (NAACP).b. All of these.c. The Japanese American Citizen's Leagues (JACL).d. The National Organization of Women (NOW).

35. Conservative and liberal ideologies differ mostly on

a. Campaign finance reform.b. Defense policy only.c. Economic and social issues.d. Civil rights.

36. Despite the fears of some that advocates for marginalized groups appeal to the courts too much, evidence shows that they in fact use the courts reluctantly and as a last resort.

a. FALSEb. TRUE

37. Are Americans more likely to vote in presidential elections than other types of elections?

a. No, Americans like to vote for direct democracy issues rather than indirect democracy representation.b. Yes, consistently American participate in presidential elections over other elections.c. Only in years when the presidential election is particularly interesting.d. No, because Americans are more interested in local issues.

38. The key way in which political parties enable democracy is

a. They stimulate interest among members of the mass publicb. All of thesec. They keep elected officials responsived. They allow a broader spectrum of participants to become involved in politics

39. In democracies around the world, multi-party systems are much more common and one sees small parties that advocate for one issue, one religion, or one demographic group.

a. TRUEb. FALSE

40. Poll results vary based on

a. Whether the method used was approved by the Census Bureau.b. Mean, median, and mode.c. Survey mode, sample size, and population definition.d. The statistical application of the Weights and Measures Bureau’s guidelines.

41. Voters who like a third party are nevertheless inclined to vote for a dominant party candidate for fear they will waste their votes.

a. FALSEb. TRUE

42. National organizations that file amicus curiae briefs are targeting

a. The Congress.b. The courts.c. The presidency.d. The Federal Reserve Bank.

43. Small racial, ethnic, or religious groups in the US

a. Don't have quotas for seats in the schools or government as they do in India.b. Do not have a party which is dedicated to their interests.c. Do not have legislative representation as is the cases in other countries with proportional representation.d. All of these.

44. When is the candidate's website NOT a good source of information?

a. To find more information about the candidate's biography.b. To find out more about the candidate's positions on the issues.c. To find an unbiased account of the candidate's voting history.d. To find out which prominent people and organizations support the candidate.

45. According to the "funnel of causality," party identification is more psychological than anything.

a. FALSEb. TRUE

46. The agencies which connect people to government are called "linkage mechanisms."

a. TRUEb. FALSE

47. Some theorists argue against the pluralists with a "rational actor" argument that says

a. That people are rational and want to maximize benefits and minimize effort, so they do not spend their time and resources to organize.b. That rational people always seek public goods.c. That it is rational to organize to acquire more public goods.d. That rational people really do not want the public goods as much as theorists think.

48. According to Jackson, the digital revolution has given us more information about the candidates,

a. And the candidates usually approve of the things written about them.b. And the information is usually quite accurate.c. But the information is not always accurate.d. But it is not very detailed.

49. Red states mean states that usually vote for the Democratic Party, while blue states mean those that are reliable for the Republican Party.

a. FALSEb. TRUE

50. According to Jackson, what is a core political value that nearly all Americans accept?

a. Equalityb. Democracyc. Libertyd. All of these

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