By Selwyn Duke
I certainly believe in a free market; that is, within the United States. So a free trader I’m not. I don’t think we need junk from China, or, at least, we wouldn’t if the internationalists hadn’t decimated our manufacturing base.
I take the position I do because of the law of supply and demand. Someone I know who lives in the Midwest ran into a man who was baffled by his dropping income; he couldn’t understand why he used to make $20 an hour but now only garnered $10. I think I know why.
If the supply of something increases relative to demand, its value diminishes. This is also true if that something is workers. No, I don’t like objectifying people and boiling them down to commodities, but for the purposes of economic discussion its instructive.
If you have fewer workers than jobs, employers have to compete for workers and the latter become more valuable. If you have fewer jobs than workers, workers have to compete for employers and become less valuable. And the more workers you have — all other things being equal — the less they will be worth.
Back when it wasn’t profitable to outsource, business had to content itself with the American labor pool. But once trade barriers were lowered to a point at which companies could profit by moving overseas, this changed. Now American workers don’t just have to compete with each other for pay, but with the whole world. It probably increased the labor pool at business’ disposal at least tenfold.
Companies now are free to look for greener pastures beyond our borders, and this ensures that many will lie fallow within them. And this problem is exacerbated because as we export jobs, we import low-wage workers.
The solution is to re-institute tariffs, which we traditionally had in America. If you make them high enough, business will have an incentive to produce goods domestically. People would still be able to buy foreign goods; they’d just have to pay more for them. This would offer the added bonus of being a revenue source for government — a voluntary tax if you will — that would allow us to lower taxes. (That’s the idea anyway; of course, with our politicians, you never can know).
As it stands now, we’re simply slaughtering the American worker on the altar of lead-laden toys, poisoned toothpaste and mammon. And China holds one trillion dollars in American currency.
Free trade uber alles.


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