Globalism, End Of Socialism Causes Of Jobless Recovery

INVESTOR'S BUSINESS DAILY ^ | Friday, August 30, 2002 | BY PAUL CRAIG ROBERTS

[sixmil]

Sounds like free traitors have a new enemy - Paul Craig Roberts.

[Dat]

So anyone who doesn't share the brigadier's economic ideology is a traitor?

[sixmil]

So anyone who doesn't share the brigadier's economic ideology is a traitor?

Aw come on, it's just a fun name.

[meadsjn]

it's just a fun name.

Unless one belongs to the unfortunate 3.1 million whose jobs were exported. The accuracy of your quip may haunt us for generations.

[RLK]

Roberts is getting it right. Amen.

[RLK]

The Bush administration would benefit from giving a little more thought to the economy and a little less to Iraq.

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Bush's daddy did the same thing. As the economy deteriorated he bombed the ragheads. That was the only thing he understood.

[RLK]

Unless one belongs to the unfortunate 3.1 million whose jobs were exported. The accuracy of your quip may haunt us for generations.

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Nobody cares about the millions who lose jobs except the millions who lose jobs. Certainly, it isn't a reality to some of the spoiled kids who hang around here.

[staytrue]

By encouraging the export of high-paying jobs and the import of poor people, policy-makers have eroded long-term growth in U.S. per capita incomes

These policies have also caused inflation to be lower than it would otherwise be and low inflation is important in preserving the purchasing power of per capita income. Further, low inflation keeps interest rates low. Finally the real killer of the US economy is high taxes. Reducing taxes (and govt. spending) would increase after tax per capita income and the govt. spending could be redirected to revitalizing american industry. Govt. with its 2.3 trillion dollar budget (this does not include state and local govt.) is a much worse enemy of the American people than a measley 400 billion trade deficit.

[Dialup Llama]

>An economy's success is dependent on its ability to produce per capita income growth. Per capita income growth in the U.S. is under attack from two factors: The U.S. exports high-productivity jobs and imports low-productivity people.

There is so much wisdom here its hard to begin. The wealth in the US was created by a middle class which could earn and produce as well as spend. This only happens when you keep more than you need for expenses. Governments and companies have been targeting this 'excess' money for themselves. The result will be economic disaster.

[Dialup Llama]

>>By encouraging the export of high-paying jobs and the import of poor people, policy-makers have eroded long-term growth in U.S. per capita incomes

>These policies have also caused inflation to be lower than it would otherwise be and low inflation is important in preserving the purchasing power of per capita income.

So we go to Wal Mart to buy inferior ersatz goods. Not exactly a good deal. Inflation is not only an increase in prices but a cheapness in goods. We have inflation.

[Dialup Llama]

The export of jobs is rationalized as "free trade." But no trade is involved in the export of U.S. jobs. Chinese firms sell the U.S. goods made with Chinese labor, and U.S. firms sell U.S. goods made with Chinese labor. The U.S. capital and technology that employ Chinese labor are relocated to China by U.S. firms, not exported to China.

Very important. Read that slowly several times.

[meadsjn]

A net-inporting, service-based economy is comparable to a mining town in which the mine has petered out, and the remaining wealth is circulated as it dwindles -- no new net wealth is generated. Assets are mortgaged or sold to support the daily consumption. Eventually the wealth is concentrated in the hands of the few worst characters in the town. The best analogy for a service-based economy is one based on prostitution and gambling.

[sixmil]

Very important. Read that slowly several times.

Many gems in this piece, IBD seems to have had a change of heart lately. I still don't understand why people can not see this. I wish I could articulate it as well as this guy, since it just seems so obvious. I must admit that I was a free traitor until I spent some time overseas observing how it actually works. If we could only view the trade deficit with the same scorn we now seem to have for the budget deficit, I think we would be half way there.

[brat]

"The income growth needed to drive the U.S. economy cannot come from exporting manufacturing jobs and replacing the jobs with retail clerk jobs selling foreign-made goods."

BRAVO! Its about time the truth came out. Free Trade is a miserable failure and is destroying this country one job at a time. What do we do about it? How about get rid of the income tax and replace it with high tariffs and duties (ala the Constitution) on goods entering the USA. Those factories will be back in no time and we can once again produce our own wealth. Globalism is death.

[meadsjn]

It is baffling how that reality escapes so many. Even those who are drawing retirement pay, government salaries, and those otherwise on the dole, are going to be adversely affected. As tax revenues shrink from decreasing income and declining sales, the government will either have to suck more blood out of the remaining workforce and private equity, or cut its spending. Now, which of those options seem more likely?

Even the old adage "what this economy needs is a good war" won't work this time, because the manufacturing boost will mostly benefit those who live where the factories are -- somewhere overseas.

[RLK]

Even the old adage "what this economy needs is a good war" won't work this time, because the manufacturing boost will mostly benefit those who live where the factories are -- somewhere overseas.

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This is part of a broader parallel problem. There used to be a process call priming the economic pump. In the present situation giving everybody a thousand dollars would now generate few jobs here because the money would go overseas to buy foreign goods.

[meadsjn]

Yep. This might be a replay of Hoover, followed by some exciting FDR (or Eleanor) solutions. Wonder who that'll be.

[RLK]

I expect a severe depression. The problem will be compounded by various forms of ideological commitment which will deny the real reasons for it.

The eventual result will be a turn to Marxism in desperation and confusion. Economic collapse here would be a cause for celebration by the radical left. The left has every reason to celebrate export of industries. Bush, the so-called free traders, and the globalists are pushing the nation into the radical left's hands. Few are inclined to see it.

[sixmil]

So anyone who doesn't share the brigadier's economic ideology is a traitor?

Aw come on, it's just a fun name.

Unless one belongs to the unfortunate 3.1 million whose jobs were exported.

You're right, allow me a do-over:

Yes, all free traitors are actually traitors just like feminazis are actually nazis.

[operation clinton cleanup]

If you dont have a job, inflation might as well be 1,000%