tom
I'm suggesting that fair trade makes more sense than one sided free trade.
It was the naive belief in "free trade" and the "wisdom of the markets" that allowed the neo-mercantilist states of the far east to usurp the US high tech manufacturing. It was people like you buying the simplistic message of Reagan and his successors that corporations always made the best decisions....without government involvement. And that by letting them run loose everything would come up roses.
Fax points to Germany, a country where industry and government work hand in hand to develop long term strategies....a country which has a balanced economy of exports and imports, and a country where no one handed over entire industry sectors the way the US has.... That inherent good sense has provided their economy the strength to hold up their small weak sisters in the Euro economy as well..
Now you point to the idea that the lack of regulations in the Far East was what drew business from the US. Actually it was the larger profits that corporations could get over the next few quarters. Yes, arrived at by cheaper manufacturing costs due to pollution and labour laws being lower. But once the industry is gone, the far east tigers can ramp up their regulation and costs...as they are doing even now, to respond to unrest in their nations labour force, and the corporations generally have no US domestic alternative. They've given away the entire industry.
The American domestic market is an enormous poker chip. Access to that market should always come with appropriate benefit to the country. And not just lower prices at Wal Mart. Long term, that means that the Us can't run head offices in New York and have 90% of its labour force, and manufacturing offshore. To turn the trend around means replacing the mantra of free trade to one of fair trade. And replacing the wisdom of the markets with a national industrial strategy.
There is still hope that can be accomplished in Green energy. That requires long term thinking, and the ability to nurture the industries development, including long term manufacturing, in the US. Unfortunately unsophisticated understanding of "free trade" and "free enterprise", particularly by politicians and the public, handcuff the US.
The president of Cisco said, "I sometimes worry what my grandchildren will do for a living", when reflecting upon the out sourcing of so many jobs.... Wouldn't it be nice, if instead of only responding to shareholders immediate concerns, that people like him did something about those worries? For that to happen would take a government that has the sense of the Germans, to get involved. And a populace that had more than a fractional surface understanding of what capitalism is really all about.
Capitalism is a system, but countries should not be run for the benefit of capitalists...rather capitalism should benefit the country. Only an active government involvement in setting and guiding policy that ensures long term benefits and nurtures capitalistic efforts to secure the furture of the economy can ensure this happens.
The US may practice free trade (with the exception of agriculture which is the opposite). But no one else does. And for that reason, the trade deficits continue.
So now you are proposing reducing free trade?
I'm suggesting that fair trade makes more sense than one sided free trade.
It was the naive belief in "free trade" and the "wisdom of the markets" that allowed the neo-mercantilist states of the far east to usurp the US high tech manufacturing. It was people like you buying the simplistic message of Reagan and his successors that corporations always made the best decisions....without government involvement. And that by letting them run loose everything would come up roses.
Fax points to Germany, a country where industry and government work hand in hand to develop long term strategies....a country which has a balanced economy of exports and imports, and a country where no one handed over entire industry sectors the way the US has.... That inherent good sense has provided their economy the strength to hold up their small weak sisters in the Euro economy as well..
Now you point to the idea that the lack of regulations in the Far East was what drew business from the US. Actually it was the larger profits that corporations could get over the next few quarters. Yes, arrived at by cheaper manufacturing costs due to pollution and labour laws being lower. But once the industry is gone, the far east tigers can ramp up their regulation and costs...as they are doing even now, to respond to unrest in their nations labour force, and the corporations generally have no US domestic alternative. They've given away the entire industry.
The American domestic market is an enormous poker chip. Access to that market should always come with appropriate benefit to the country. And not just lower prices at Wal Mart. Long term, that means that the Us can't run head offices in New York and have 90% of its labour force, and manufacturing offshore. To turn the trend around means replacing the mantra of free trade to one of fair trade. And replacing the wisdom of the markets with a national industrial strategy.
There is still hope that can be accomplished in Green energy. That requires long term thinking, and the ability to nurture the industries development, including long term manufacturing, in the US. Unfortunately unsophisticated understanding of "free trade" and "free enterprise", particularly by politicians and the public, handcuff the US.
The president of Cisco said, "I sometimes worry what my grandchildren will do for a living", when reflecting upon the out sourcing of so many jobs.... Wouldn't it be nice, if instead of only responding to shareholders immediate concerns, that people like him did something about those worries? For that to happen would take a government that has the sense of the Germans, to get involved. And a populace that had more than a fractional surface understanding of what capitalism is really all about.
Capitalism is a system, but countries should not be run for the benefit of capitalists...rather capitalism should benefit the country. Only an active government involvement in setting and guiding policy that ensures long term benefits and nurtures capitalistic efforts to secure the furture of the economy can ensure this happens.
The US may practice free trade (with the exception of agriculture which is the opposite). But no one else does. And for that reason, the trade deficits continue.