Posted on 09/20/2011 6:36:10 AM PDT by Clairity
Are you thinking of Bill Clinton’s awarding Most Favored Nation status to china? BTW, it was worse than that, he allowed 2% duty on imports from China, and allowed them to impose 40% duty on Chinese imports from the U.S.
Economies are not zero-sum games. The more true wealth-production in the world, the better.
Put another way: the less Socialist countries with repressed wealth-production in the world, the better.
If Americans are free to make stuff better, faster, cheaper then that's good news for me: not only does the average price of a Ford Focus come down, but also the success of unrestricted wealth-production acts as an example to other countries.
In this way Socialist ideas get rolled back worldwide. You can see how the two things are interrelated.
It is to everyone's advantage that Government is shrunk and wealth-production is increased: no matter which country we are talking about.
Here in the UK we already went through all the paroxyms with trying to save uncompetitive domestic industries. Does "British Leyland" ring a bell with anyone here? Well maybe not, but I'm pretty sure "General Motors" does.
British Leyland was a huge uncompetitive (and unionized, go figure!) auto-maker in the UK. The amount of taxpayer money and intellectual capital thrown at BL before its eventual, inevitable dissolution just doesn't bear thinking about.
When I say "reduce taxes: reduce bail-outs: push back on unions: let your industries compete or die" I have the appalling example of BL in my mind's eye.
Hope this was helpful.
Whoa, I just typed about 500 words on the subject.
If you raise two points I answer two points. Why do I have to put everything in the same post?
That's a useful example. Germany's corporate tax rate is about 25%, and their education system produces excellent technicians.
Also: their Government doesn't seem to spend its time selectively punishing Siemens or Thyssen-Krupp for not making the right campaign contributions. Plus I don't think they have to use ethanol in their cars (though admittedly I don't know that for sure).
But elect a Conservative President and House, and you guys will leave Germany in the dust.
The Chinese have to save their oil to run their destroyers, fighter/bombers and tanks.
With news like this, why isn’t the NLRB investigating GM like they did to Boeing?
Well, that is true. But I do believe people get alot more from free trade than not. Case in point, the shoe industry (I realize I used this example before, but it is worth repeating). Back in the 1950's, the US shoe industry employed 250,000 people in the US. Today, shoe manufacturers employ 12,000 people. Yet, in the 1950's, the average American, had on average a 2-3 pairs of shoes. Maybe a little more. Today, of course, it is common for people to have a closet full of shoes.
Free trade frees up the workforce to do other things, like high tech., etc. The problem is, and this is a real problem, is that many Americans are unable or unwilling to move up the value chain. You won't read about it in business articles or hear pundits talk about it.
Free trade, in an ideal world, works. In essence, America is trading higher value products, produced with more engineering, technology, etc. in exchange for products that require a tremendous amount of labor, like textiles.
But not everyone is able to move into these higher industries. Every high unemployment times, the news is the same, that employers are looking for people, but looking for skilled people. And that there needs to be more training. While I agree with that assessment in part (more training, etc.), the reality is, not everyone is willing to do those jobs.
Ironic as it may sound, just as people aren't willing to do the dirtiest or most dangerous jobs, there are also many people unwilling to do the most arduous and difficult jobs.
Put out a job announcement that requies someone to operate a piece of machinery for $25/hr, and you will get a long line of job applicants.
Put out a job announcement for a project manager for 100k/yr, salaried, take on responsibilies, have their work schedule be open ended, i.e., work overtime as needed to get the job done, and you will find very few people willing apply for a job like that.
That's why so many people in America, are willing to expand trade with countries like China. They are the ones organizing people. Take up responsibility, etc. They create technology and are looking for cheap labor to make their every day items. And to seek higher returns.
So, to some degree, I agree with you. Too much trade makes it difficult for a large swath of Americans who cannot be the Jeff Immelts or the Steve Jobs.
The Chevy Volt is selling like hotcakes duncha know !!! ,,, around 250 sold nationally so far and probably most of them bought by the US govt.
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