Determining which is the best approach for the American economy, free markets
vs. protecting jobs, is an ongoing political battle. Democrats align with organized
labor, the job protectors while Republicans side with the free marketeers driven
by businesses and Wall St. Both positions have merits but need to be continually
examined and adjusted when promised benefits fail to materialize.
I agree free markets are superior, but only when applied fairly which most American
workers do not think is occurring and supported by the trade imbalance and superior
economic growth that exist among our trading partners while our workers are saddled
with stagnant wages and consumers plagued with reduced buying power.
Job protectionism is the reaction when free market agreements harm workers even
as businesses and equity markets thrive, now causing a resistance to attempts to
continue trade policies as they currently exist.
The argument that we must remain integrated in the global economy falls are deaf
ears as proven by the popularity of both Donald Trump and Bernie Sanders, as
different as any two political candidates for the presidency can be!
Free market economies are only successful when all trading partners benefit equally,
the sought after "win-win" environment. But, as the numbers demonstrate this is not
the case and the only 'win-win' has been exploding growth in China and here on
Wall St.. America's Main St. economic conditions remains lethargic!
Imbalanced trade agreements have led to job loses and lower wages causing the
reduction in Americans discretionary spending, even hurting our trading partners
who depend on the American consumers.
The fallout of unfair free markets has crushed the American consumer as their buying
power for housing, insurance, energy and education have accelerated faster than other
expenses The lower costs for cell phones, TVs and computers is not a sign of a
strong American economy.
A corrective measure which must be included in future trade deals is the addition of
a "barometer", a key element to protect the economic health of American workers
and consumers so they do not have to bare the burden of promised benefits which
never materialize.
We can no longer penalize American workers and consumers for the failure of politicians.
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A. Truly free markets exist only without government-imposed rules or trade agreements. Businesses work these things out through competition. Any intervention into this destroys a free market
ReplyDeleteB. Yes, I agree. I was all for free trade from about the middle 1970s to the middle 1980s inasmuch as that had become part of classical Republican economic theory and had gotten gung-ho support from my former boss Jack Kemp -- who never did get around to acknowledging the issues you've pointed out. Additionally, Jack earnestly believed that tax reduction was the solution to ALL problems including rheumatism. And he was an insufferable Pollyanna on the subject of race relations as well. Perhaps he was fortunate to have expired before having to confront how poorly his programs and views have dealt with our current mess.
C. Tony,
You have been feeding on too much government education and propaganda. "Free Markets" not only protect productive jobs but they produce more jobs. What we have been led to call free markets is nowhere close to free markets. They would be more accurately called "managed trade"
FREE MARKETS haven't existed in the US in my lifetime. (74 years)". The "left" is correct when they point out the flaws of capitalism but, that is not free market capitalism. It is more accurate to describe our economy as corporate fascism, monopoly capitalism or crony capitalism ... Or, one of several other apt descriptions.
NAFTA, CAFTA and other such trade agreements, crafted by one-world ers representing internationalist ides and not American interests are layers of uneven protectionism. They are thousands of pages, have their own boards and commissions, even their own legal system with their own judges. Politicians call that free trade and we have, for the most part, accepted it.
A Free Trade agreement would take about one page. Naturally, free trade would make the participating country's industries more efficient and competitive. There would be winners and losers but the overall results would be much better than letting the government do the picking.
There is a wide difference between an income tariff and a protective tariff.
I can only hope that our friends, Trump and Cruz understands this.
D. Please don't malign "free markets" by calling what we have a free market. Especially don't call what Chamber of Commerce "R" stands for Right Republicans like McCrory and Tillis stand for "free markets."
What we have right now is called "crony capitalism." This is where government has sufficient power of force and offers it to sale to the highest bidder. Those with the most money buy favoritist policies and tax loopholes.
What we need is a flat, transparent tax system and the removal of organizations like the EPA that legalize amounts of damage to private individuals, or like the Attorney General prosecuting big banks instead of forcing them to compensate those damaged by their risky practices.
Government backed robbery of tax payers to fund banks and businesses are the problem.
Let's TRY the free market before declaring it failed.