Meditations and Learnings

Meditations and Learnings

How Much Does a Country Spend to "Save Jobs"?

Under free international trade, the difference between the number of outsourced jobs in either direction changes over time. This outsourcing is volatile, and focusing on it misses the point. Firstly, the proportion of total employment rates made up by these jobs is small, and more importantly, it does not consider the greater efficiency and wealth generated by international transactions.

The European Union is an exemplar of the impact of protectionist policies. All of the protectionism in European Countries is estimated to save no more than 200,00 jobs, for $43 billion. That means that the EU countries spent about $215,000 a year on each saved job, and it would be better off paying each of the unfortunate unemployed people half of that as compensation.