US Economic Collapse: Truth About Free Trade

[nickdnc2003]

Technical economics indicates that tariffs and quotas are woefully poor ideas. Trying to punish another country because of their cheaper labor costs by imposing restrictions such as these not only hurts the foreigners but hurts American consumers as well through raised costs.

Tariffs and the like are pure political tools used to cater to special interests and are promoted under the guise of helping America. Even the most basic understanding of economics shows this to be true.

[He101A]

@nickdnc2003 Free trade doesn't work.

[AroundSun]

@He101A Doesn't work? Doesn't work for who? It doesn't work for industries that want government backed subsidies. It does work for the millions of people who pay lower prices. It does work for the companies who rely on imports in order to stay in business and keep their employees. It does work for companies who rely on imports in order to produce and export. The only ones it doesn't work for are those afraid of competition. Which I say, adios! Let me guess, you are protected by the gov?

[He101A]

@AroundSun Just look at what is happening now. All the jobs are going to the country that pays the lowest wages. That is what free trade is about. You need tariffs to protect your economy. If a worker in x country makes $1.00/hr, and workers in your country make $10.00/hr, you need to make a tariff of 1000% so the worker in my country will survive. The U.S. allowed free trade policies for one reason, it has the world reserve currency. That will change when the dollar no longer has that status.

[AroundSun]

@He101A Oh boy. uhm, the trade deficit has nothing to do with the budget deficit. You take the simple approach. What you are not understanding is that we are making airplanes instead of T-shirts. All the jobs you say? The US is still the largest producer of products in the world. I don't know if Rachel Maddow ever told you that.

[He101A]

@AroundSun It doesn't really matter to me, I am involved in international trade. It's your job that will not be here, lol.

[AroundSun]

@He101A Well lets not avoid the fact that you and your protectionists are absolute retards. You can't differentiate the national debt from our trade deficit, and the world will be moving towards freer trade not less trade. I don't believe for a second that you even know what int'l trade is, let alone make a living. You weren't aware that we have the highest GDP. That is sad. I will not be losing my jobs, but you may be left behind unless you educate yourself, which you have not done.

[AroundSun]

@He101A Well lets not avoid the fact that you and your protectionists are absolute retards. You can't differentiate the national debt from our trade deficit, and the world will be moving towards freer trade not less trade. I don't believe for a second that you even know what int'l trade is, let alone make a living. You weren't aware that we have the highest GDP. That is sad. I will not be losing my jobs, but you may be left behind unless you educate yourself, which you have not done.

[He101A]

@AroundSun If your a businessman in a free trade environment, it's all good. If your worker, your screwed. I guess, we will just have a two tier society here in the United States, you are going to be either rich or poor. Most of the parts for the vital weapon systems are made overseas, like the gyroscopic guidance system for cruise missiles. Hardly anything is assembled here, they do it in places like Mexico. I guess, the American worker can't compete. Not my problem.

[AroundSun]

@He101A How so? For every 5 million low paying shitty job we exported, we accumulated around 19 million new, higher paying jobs. The money that leaves our country has to come back in exchange for something we produce, directly creating employment in America. Most businesses in this country would have to fire millions of people if we raised taxes on imports. The goods they produce require imported materials. Which are cheaper, and cut overhead expenses. More jobs, lower prices.

[He101A]

@AroundSun Most of the jobs that were created were service sector jobs, lol. Working at Walmart, McDonalds, Wendy's, Costco, etc. More than 80% of the U.S. economy has service sector jobs. I guess, your right in one way, it is all about survival of the fittest. So, let's let the Chinese have all the jobs, because they have the most cost effective work force willing to work for less. Doesn't matter to me, I can just leave this country, lol. Where are all those jobs that were created? LOL

[AroundSun]

@He101A "In a truly capitalistic system, the government is only responsible for national and domestic security." This is what we had, and this is what we need again. The founders know this, and we have even more reason to believe in it today because we have had over 200 more years of experience with it. Blame the high corporate tax rates, crony capitalism, regulations for special interests, and a central bank printing money out of thin air.

[He101A]

@AroundSun I guess you have a point there. We don't have true capitalism in the USA anymore. We have a nanny state, and Keynesian capitalism(crony capitalism). The Federal Reserve is also a problem, they loan money to congress at interest created from thin air. This is why we have such huge deficits. Politicans love to spend money. True capitalism will work if you put it in those perspectives. We have way too many regulations and unnecessary taxes which drives many companies out of the country.

[AroundSun]

@He101A If politicians and intellectuals stepped aside, protected our rights, and let the US and the World prosper, we would be in an overall much better situation than we are in today. Corporatism and Keynesianism is central planning.  A private central bank is central planning. Protectionism is central planning. "The curious task of economics is to demonstrate to men how little they know about what they IMAGINE they can design". -Hayek. See "Friedman Free Trade Steel Industry" video.

[He101A]

@AroundSun Most of those jobs were created in the financial, real estate, retail, & construction sector. All of those sectors are in a slump. Millions of jobs were lost because of the lack of tariffs, but you are right millions will be lost now if they add tariffs now. Like I said, survival of the fittest is fine with me. They have to go all the way with it. They have to get rid of welfare. In a truly capitalistic system, the government is only responsible for national and domestic security.

[AroundSun]

@He101A When you buy certain products, it will say Made in China but they are smart, and say Designed in California. That is where the most bulk of value is added. We are still the breadbasket of the world. There was a decrease in many manufacturing jobs due to automation as well. Which creates higher paying jobs servicing those industries. We are passing our 1908 jobs to poor nations to become better off, just like we did. Car makers in the US also use foreign parts.

[jimsmith17315]

Look at trade like a magic box: You put things into it that cost less than what comes back out of it. Say you put $100 of corn in and get $150 of car parts out, would you like something like that? The "magic box" is free trade.