I am a lifelong fan of internationalism and trade. I believe economic integration will lead to political integration when it's conducted in a manner which will benefit all sides of the equation. The problem today is that "free" trade isn't free at all and is skewed toward foreigners in Asia.
As a nation, we're running massive and unsustainable trade imbalances which have transformed us from the world's leading creditor to the world's leading debtor. During that transformation, we've witnessed millions of once high-paying middle class jobs being outsourced and exported to China, Japan and Korea.
All of those Asian Countries have a record of using Mercantile Policies and techniques to undermine our nation's manufacturers and exporters. Mainstream economists have estimated that undervalued currencies in those countries are harming us. The Chinese Yuan and Japanese Yen have been undervalued for decades and we're witnessing a ballooning trade deficit with both of them.
Meanwhile, the Chinese, Japanese and Koreans are benefiting from booming economies that are producing millions of new manufacturing jobs. We are a nation which once led the world in industrial production and now we're falling further and further behind in sector after sector.
In 2010, America registered a $275 billion imbalance with China. Go to the store and you'll see "Made in China" on every corner. China's undervalued cash has allowed Chinese manufacturers and exporters to screw us here in America and in China and there is nothing we can do.
Japan and Korea also use China's Mercantile Policies to harm us. In 2010, we ran a $60 billion trade imbalance with the Japanese. The Japanese have been undermining us since Reagan was in the White House and we now owe around a trillion dollars to Tokyo's Bank of Japan.
Furthermore, the Chinese and Japanese aren't even willing to debate the issue. China believes it deserves to have an undervalued currency even with their booming economy and high inflation rate and the Japanese are banking on exportation and cheap cash.
According to the World Trade Organization, we are well within our position to institute Anti-Dumping Tariffs on Japanese Auto-mobiles, Korean Steel and Chinese Auto Tires. You know that America is being screwed when a global institution, such as the World Trade Organization, is recommending protectionism for us.
The problem is that our Congressmen and women haven't been willing to take charge on the matter. Warren Buffet, a multi-billion dollar world renowned corporate executive, offered us his Balanced Trade Act, which was introduced in 2006 for Congressional consideration. Warren's Trading Bill, had it passed, would have eliminated our trade imbalance and would have spurred serious high-paying job creation.
I believe all Americans should make trade a serious matter in this election and should Write Editorials, Call their Congressman and Endorse Warren Buffet's Plan for getting us back on track and saving the American Business and the American Worker from a corrupted trade regime which is undermining us in favour of foreign and multinational special interests.
What does Buffet's bill prescribe?
ReplyDeleteTrade Certificates which would lead to a balancing of imported merchandise with exported merchandise.
ReplyDeleteAn exporter would earn a certificate on par with the merchandise which could then be auctioned to an importer.
It's a trade based version of the Carbon Emission Exchange.
Which will lead to a cartel forming, thus a pseudo~oligarchy.
DeleteFlat Tarrifs is what I champion. They are much more efficient, and while maybe not as versatile, they regulate trade effectively and simply.
I don't think it'd lead to a cartel. We live in the modern era of computing. It wouldn't be hard to monitor the trade model.
ReplyDeletei wonder what the consequences would really be if we tried to implement such tariffs?
ReplyDeleteNone because it would be like implementing a Flat Excise tax. You are 'standarizing' the duties paid for all products.
Delete@Richard:
It would lead to cartels because not all importers would have access to certificates, ergo their supply is limited, and thus exporters will seek to -- unsurprisingly -- profit the most by banding togheter.
While the measure may still work, there are far more effective methods to regulate trade.
None Vince. We can't institute tariffs. We could, however, institute Warren's idea because it doesn't discriminate and because the World Trade Organization allows us to use anti-dumping measures. Warren Buffet would never offer an idea which would spark a trade war.
ReplyDelete