It Is Not A Good Idea
To Act As If You Can Not Accomplish
What You Were Elected To Do
Tuesday, May 24, 2016
The Free Trade Proponents’ Arguments-Get Ready, Trump
Having been a strong proponent of free trade, I have this thing now,
it’s called using inarguable evidence to adapt my worldview.
I
also have this other thing, rejecting the manner in which the USA has
conducted free trade does not equate to bringing back Smoot-Hawley.
Free
Trade’s promise, for those of you who weren’t aware in the 80′s time
frame was that much cheaper consumer goods would increase the purchasing
power of the everyday consumer, thus the disposable income, and we all
would be happy and have more money.
In 1980 the price of a Ford
Fairmont made in Michigan (mid sized vehicle)was $4,890 Today the
bottom end of the Ford Fusion line $22,110. It is made in Mexico.
In 1980 the median income was $16,671. In 2014 it was $53,013.
In 1980 a Ford Fairmont made in Michigan was 29% of income.
Today a Ford Fusion from Mexico is 42% of income.
But what is median income?
And you have all seen this: So
as manufacturing of the single item that stood for US dominance has
moved with labor the costs of free trade (which is PHYSICS, not
politics, if you embark on free trade), the price gain of free trade is
NEGATIVE ($ -17,220) in both absolute and relative terms. Worse still,
while you are paying nearly HALF of a year’s income now, for your car
made in a nation whose per capita income is 1/5 of the USA’s, the odds
are your ability to come up with that sum have SINCE THE 1980′s become
MORE UNFAVORABLE unless you are in the top 20% of earners.
Free
Traders argue there is no way to buck this, and workers should be
retrained and be prepared to give up their way of life and family and
move to where other jobs are (Hillary - ‘we are going to put a lot of
coal mines out of business’).
Free traders however, want BOTH an economic world without borders, and a military world with invulnerable ones.
Since,
unless rapacious taxes are the goal, the disposable income of the
middle class is the marker of govt revenues which are then collected to
be spent in part on military/defense goals, and since free trade CRUSHES
this marker, the free traders are OUT OF THEIR MINDS.
Since
labor costs have decreased, taxes in other nations are lower, real
estate is almost always less, and costs of doing business are much
lower, but prices are not, where is the margin gain going?
Boards? Dividends? Cash retained? Top management? Stock buybacks (from who?)
Am I sounding like an economic radical now?
The arguments now being made AGAINST moves away from free trade as we have practiced it are:
It will be a tax on the poorest
This
is the same argument originally made IN REVERSE in favor of free trade
that the consumer would benefit from lower prices of goods made
overseas. We do NOT have lower prices anywhere, and it should be obvious
that WELL OVER AND ABOVE automation productivity gains we have traded
careers and INDUSTRIES HERE, for purportedly lower price increases in
the jobs and industries moving to other much lower cost nations. Except
there are no lower prices, and price increases continue as overseas
workers want better lives too.
It will start a trade war just like the 1930′s
This is not the 1930′s. This is nothing like the 1930′s. And FAIR TRADE will trade back FOR INSTANCE some lousy products made more cheaply overseas
for USA industries that will provide INCREASED NATIONAL DISPOSABLE
INCOME (see: Japan 1950-1979). If necessary, for strategic industries,
we can just embargo certain products to ensure the demand for them is
filled domestically with sliding numbers over time. What will China
punish us by doing that is WORSE than this?
We
cannot invent financial products on Wall Street, fatten up corporate
profits with locomotives produced in Brazil (GE), make greater margin by
buying in quantity from AliBaba, and then think from admin stats about a
great economy this equates to the disposable income of the middle
class, and motherboards for the DDG-51′s defense systems made in Texas,
or North Dakota instead of Shenzhen, or Tolucca, or Singapore, or
Kaohshung.
We are in a cycle of more and more demands chasing fewer and fewer financial resources.
FACT.
We cannot continue.
It is unsustainable EXCEPT FOR THE FEW.
It’s time to try something else.
Free trade as WE have practiced it, HAS FAILED.
So
what would West Virginia and Eastern Kentucky offer DeWalt, or
Crafstman, or Milwaukee tools, to open that new tool factory right where
the coal mine workers live?
All of us, every single man, woman, and child on the face of the Earth were born with the same unalienable rights; to life, liberty and the pursuit of happiness. And, if the governments of the world can't get that through their thick skulls, then, regime change will be necessary.
The Untold Story of Muslim Opinions & Demographics
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IBA Quote of the Week.
"The tank, the B-52, the fighter-bomber, the state-controlled police and military are the weapons of dictatorship. The rifle is the weapon of democracy. Not for nothing was the revolver called an "equalizer." Egalite implies liberte. And always will. Let us hope our weapons are never needed — but do not forget what the common people of this nation knew when they demanded the Bill of Rights: An armed citizenry is the first defense, the best defense, and the final defense against tyranny."
-- Edward Abbey
"An Islamic regime must be serious in every field," explained Ayatollah Khomeini. "There are no jokes in Islam. There is no humour in Islam. There is no fun in Islam."
****************
"I want to be very, very clear, however: I understand and agree with the analysis of the problem. There is an imminent threat. It manifested itself on 9/11. It's real and grave. It is as serious a threat as Stalinism and National Socialism were. Let's not pretend it isn't." ~~~~~Bono~~~~~
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