d to exist. Producers do not always supply what people want at the lowest cost. Second, incomemay be unevenly distributed and leave out some groups. Third, periods of unemploymentand inflation can arise. Wallis also argued on behalf of the free traders about the protectionist result ofretaliation. He states that if the US limits a country’s exports of a given product to theUS, then the country’s ability to buy from our country is reduced. They would then havea tendency to retaliate directly against some of the United States’ exports. This wouldresult in the US industries losing their export market, thus causing unemployment. Theconsequences of this excess supply of labor are not on the positive side. Besides thealready existing surplus, there will also be government purchase of that surplus, a higherprice to consumers, and a higher price to sellers.Retaliation is a possible reaction to protectionism, but unemployment is not likelyto occur. Even if the laborers will lose their jobs from the export-competing industries,the United States job sector will still have opportunities for those workers. The US has ahigher rate of skilled workers than that of other countries. In short, the United States hasa higher level of productivity than other countries in the international community.John M. Culbertson disagrees with the proponents of free trade when he says thatthe United States is alone in supporting free trade, while other countries are putting upbarriers. According to Culbertson, the other countries’ goal is their respective nationalsuccesses. The welcoming policy of the US simply allows the other countries to takeadvantage of the situation. Forty years ago, the United States dominated the world economic scene. Eventhough Japan constantly tried to reach its way to the top, the US was always a step or twoahead of them. Recently, though, in its quest for unregulated foreign trade, the US hasleft its ma...
