Wednesday, September 28, 2016

Free Trade is Only Possible Between Equals

My hometown had three steel mills. Two are closed down permanently and the third isn’t doing too well. Why? Because of cheap Chinese steel dumped in the U.S., sometimes through Vietnam to avoid the minuscule U.S. tariffs (my hometown has also gone from 50,000 to 30,000 people).

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.

7 comments:

Glen Filthie said...

America is buying Chinese steel because American steel is made by high school graduates (and drop outs)that make $75K a year doing a job that the chink will do for far less. And unlike the lazy, pooch screwing American union slob - the chink will often take pride in his work. It makes me laugh as Unions - in this day and age - are still doing their level best to negotiate themselves out of their own jobs.

You of all people should know better than that Uncle Bob! You were a journalist and an editor! I can read better, more informed commentary on the internet for free than the stuff being produced by the mainstream media. You are a case in point: why would I pay the fags and sissies at the Noo Yawk Slimes to read their dreck - when I can come here and read your (mostly intelligent)commentary for nothing? AND crap in the comments and squabble with your other fans?

America - and to an even greater extent here in Canada - we're on borrowed time when it comes to "intellectual capital". In order to produce that you need the confidence of the market to invest in it, and you need an environment in which it can grow. Consider the convergence of social justice warriors infesting our corporations. The top jobs are going to unqualified vaginas and vibrants with no real skills, merit, or ability. As they enforce political correctness and social justice in the workplace, intellectual capital will slow and eventually stop. People cannot innovate today without offending someone. Are you going to invest in a start up run by beaners, hairy chested feminists and homosexuals with a marginal product? Neither will the Chinese!

That chink worker is actively concerned about the welfare of his employer too. The American Cnut wants a year off for maternity, job security, a gold plated pension, and days off for baby sitting, menstruation and Golden Fridays. That's in addition to the time off spent harassing and shaming offensive white men or the producers that make her feel bad.

That's why we are buying inferior Chinese steel, Bob. Americans make REAL steel...but it just isn't worth the hassles anymore and there's no profit in it.

ray said...

NAFTA always, and only, was a scam perpetrated by the 2 percent on the rest of America. Just pigs snurfing in the trough. The leaders involved are traitors to the nation, and should be caged like the animals they are. However, NAFTA largely impacted LC and formerly MC white males, and so politically it was acceptable. After all, the girls would just get college degrees and go to work for government and NGOs, secure job with nice salaries. Which is exactly what happened. NAFTA was great for stock market millionaires and UC Demoncraps, and absolute poison for small/medium towns, and for the working class. What's not to love? This is New Amerika.

ray said...

"Consider the convergence of social justice warriors infesting our corporations. The top jobs are going to unqualified vaginas and vibrants with no real skills, merit, or ability. As they enforce political correctness and social justice in the workplace, intellectual capital will slow and eventually stop. People cannot innovate today without offending someone. Are you going to invest in a start up run by beaners, hairy chested feminists and homosexuals with a marginal product? Neither will the Chinese!"



Correct. The problem isn't with the Chinee, and never was. The problem is America, since she's gone Total Fem. And Total Fem = Total Godless. The men in America don't have the groceries to tell females (and their governments, and their courts, and their police, etc.) to Eff Off and Die with their bloated, nasty matriarchy. So the women took over and installed males that destroy other males, destroy fatherhood and masculinity, hello Barry and VAWA Joe and Chris Christie and endless.

Look at the debate. The nation is burning, and yet only now is coming to the point of staging a debate with evil. As if such a debate can be won. You want your nation to survive? You don't debate with evil, much less give evil a Presidential Platform. And you don't send Bubble-living Businessmen out to confront evil, much less overcome it. But folks like Glen imagine that the U.S. can business or politik it's way outta this pit, or at least hold off the collapse long enough to have comfy lives. Ain't gonna happen, business models and cleverness won't save you, the beast already rules, via proxies. You either crush the evil, or it finishes off the nation.

Glen Filthie said...

No bubble here, Ray. I'm prepping like mad. Fact is with really good luck ... I may be tomorrow's upper middle class: modest (very modest) home, functional, utilitarian vehicles...and knock on wood, no DEBT.

Trump can't save us from what's coming. We would have had to jump on this idiocy 40 years ago when idiots like Jimmeh Carduh were racializing bank lending practices so that niggers (not respectable black people) - could afford homes. Back then the geriatric crowd pissed away the last of their inheritance from The Greatest Generation and started running on debt. Now YOUR grandkids are screwed, never mind mine. And THEIR kids are screwed.

10 years max if Trump wins. 5 if Hillary does.

paulmurray said...

You cannot compete on price with slave labour.

Joshua Sinistar said...

Trade is not a necessary component of a World Power. The United States has all the drawbacks of an Empire without any of the benefits. Trade is necessary only for tiny countries like England with too few acres of arable land and a small population of workers crammed on a small landmass. A huge nation like America needs no trade. It needs no more arable land or resources. We already have all of that. We just need to rid ourselves of lazy parasites who have shut down our industries with their lies and greed.

Anonymous said...

"We just need to rid ourselves of lazy parasites who have shut down our industries with their lies and greed."

You should deport yourself to start.