Disastrous, Job Killing “Free Trade”http://economyincrisis.org/free-trade
Free Trade https://www.youtube.com/watch?v=O7EvI3gcZMcTariffs were originally set up to help protect American industries by Alexander Hamilton, the first U.S. Secretary of the Treasury. During the Civil War, Abraham Lincoln, then leader of the new Republican Party, similarly implemented a 44 percent tariff to protect American industries and generate funds for the war and the construction of railroads. After World War II and during the Cold war, the U.S. government began lowering trade barriers and instituting what is known as “free trade.”
America is now oppressed by the chains of “free trade” through treaties like the North American Free Trade Agreement, undemocratic and secretive trade regimes like the World Trade Organization and border tax inequities allowed by the WTO, such as the Value-Added Tax which is utilized by 152 of America’s economic competitors.
Shackled with these disadvantages, America is no longer able to compete economically on the world stage. Our nation is gradually allowing Japan, nations in the European Union and emerging economies in China, India and Brazil to overtake the U.S. as the world’s lone economic superpower. Eventually, if all remains the same, NAFTA, the WTO and the VAT will be responsible for America’s complete and total economic downfall. The nation is already well on its way, and without wholesale changes to our economic policy, we will certainly find ourselves in the economic gutter, so to speak.
So-Called “Free Trade” is not Fair Trade
Free Trade vs Fair TradeIt is no wonder then that America is unable to compete in the global marketplace. The nation is consistently hamstrung by these unfair trade practices. If we are to one day reemerge as an economic superpower NAFTA must be renegotiated, the WTO must be disbanded and the VAT must be eliminated. Otherwise, America will continue to be chained by the detrimental effects of “free trade,” descending deeper into economic turmoil.
The Trade Deficit
It’s no secret the United States has alarming trade deficits with a number of countries, but with no country on Earth is our trade more unbalanced than with China. Back in 2013, our trade deficit with the Chinese was $318 billion. 2014 numbers are not available yet, but they are likely to be even worse. This is even more devastating when you take into account our debt owed to China, which — as of last year — was well over $1 trillion dollars.
For the United States to become competitive in the global marketplace again, we must attack the source of the problem: “free trade” and other harmful trade relationships that hurt our economy. Our relationship with China has resulted in a high trade deficit, alarming debt, thousands of job losses, the decimation of our manufacturing industry, outsourcing of many powerful U.S. companies, and a consumer base content on living off of cheaply made, foreign imports.
We must strive towards becoming more self-sufficient in the future, or else our debt and trade deficits will continue to rise and U.S. jobs will continue to be lost.