Archive for March, 2008

Trade Tariffs

Sunday, March 9th, 2008

From 1789 to 1980, America protected its industry by something called Tariffs. This protectionist trade policy produced the greatest nation on earth, and remained in tact until Ronal Regan disassembled it during his administration.

What has this done for America?

  1. Manufacturing now represents about 12.1% of our GDP, a drop from about 20% in 1980 (40% reduction).

  2. America has lost control of its technological edge as it has exported technology in a race for the bottom. Cheap labor has skimmed the equity built in America over the past 60 to 70 years.

  3. Globalization is the failure for our politicians to create a level playing field for American industry – and it has led to the erosion of America’s wealth (equity).

  4. American working hours has increased while buying power has diminished. This has been made up by debt from years when Americans did have buying power – before wealth was shifted to the top 10%.

  5. Taxation has been shifted from the rich to the middle class creating more investment, more supply, pressure to price compete at a greater rate which in turn depresses wages, creates pressure for more borrowing, etc.

Why do we need free trade? What advantage does America have by being “Free”?

The benefit of free trade is market efficiency. When a foreign country makes a product more efficiently then importing that product.

What efficiency do we now have to export from the United States?

War, natural resources, corporate equity, savings (cash), all of which causes the impoverishment.

Conservatism is before your very eyes today – with America becoming impoverished. Isn’t it time to stop the insanity?