These were high-paying jobs that disappeared with the steel mills – these guys retired at $75,000 a year. And that was with a high-school diploma.
Why is there any Chinese steel here at all? We have enough capacity to take care of all of our own needs.
Why is it that no one complains about trade with Canada? Because except for some minor cultural differences there is no difference between an American and a Canadian. We’re equal, so trade benefits both of us. Both are rich countries.
Yet nearly everyone complains about trade with Mexico and certainly with China. Why? Because Mexico has a GNP that is four percent of the U.S. and the mean IQ is 87. We’re not equal and never will be. And since Mexico is perpetually poor it will never have a growing economy that lifts all boats. It will always be dependent on the U.S. for jobs. Only Mexico benefits from trade with the U.S. – but not the U.S (if only we had another Canada south of us!).
China is a bit different of a story. The Chinese are not stupid but never did much of anything with their wealth and smarts. Like the Russians they’re stealing all they can from us because neither can produce the intellectual capital itself. The country is not equal to the U.S. no matter how much the Chinese delude themselves China is “the Middle Kingdom” – the middle of the world.
I recently read an article about a scientific and technology company in southern Missouri that was doing so well that it had an office in London. They were naïve enough to hire a Chinese couple, who stole $10,000,000 and fled to China.
Today, and for the foreseeable future, it’s the United States that is the middle of the world, because we are so far ahead of the rest of the world in innovation and scientific and technological advancement that they will never catch up with us.
No one also cares about trade with Europe because again except for cultural difference there is no difference between a European and an American. Again, we’re equal.
When you have trade between unequals only the poorer country benefits. Except for what I call Cosmodemonic Transnational Megacorporations. They benefit, and hugely. But no one in the richer country benefits except for some lower prices – which is far less important than having a high-paying job.
Globalism, which is going the way of the Dodo (Brexit was a warning shot) has benefitted no one but the uber-wealthy.
It’s either free trade between equals or managed trade between unequals.
And if super-rich are so smart why could they not see the backlash that was inevitable? Perhaps they’re not nearly as smart as they think they are.
Free trade between equals is disruptive, as innovation is always disruptive. Those who want managed trade don’t want competition and disruption, not of their wealth, not of their power. If they disrupt everyone else’s lives, as long as more money accrues to them – they have never shown the slightest concern about that.
Like the steel mills in my hometown.