“President Obama Forcing the Unholy Trinity on America” by Jordan Bailey, over at EIC.
NAFTA is usually cited as the quintessential “free trade” agreement. It tore open our borders and allowed unfair competition with labor rates below $4 an hour, something U.S. manufacturers can’t compete with. It turned over our sovereignty to unelected tribunals. It has initiated a race to the bottom, not just for wages, but for standards, too.
This is just the beginning of what President Obama wants to foist on the U.S.
And to put the trade issue into historical perspective: After WWII, the US had the only major intact industrial economy. This gave the US a great deal of power, and it has since squandered that advantage, putting Wall Street profit over American interests.
The US has overspent, underinvested.
The free traders (managed trade) who say we don’t understand trade are looking at the matter from a global perspective. They imagine Asia will always play by the rules, never exploit an advantage. Protectionists are looking at trade from a national perspective. Note: Asia is already protectionist.
In a society, you have those who work and those who enjoy leisure time from the backs of those who work. Those who achieve success strive to build moats, to protect their advantage. And the same can said for global interactions in an increasingly globalised world.
America should want investment to flow to the US, should want the best jobs to flow to the US. America should want to be at the cutting edge of manufacturing, other technology, productivity gains, so that Americans can enjoy higher wages, more leisure.
Other polities can provide America resources.
The current trend is for America to eventually provide resources to Asia. Someone is going to sit on top. It might as well be us. Life is hard for those on the bottom.
One needn’t be overlarge to enjoy an advantage, either. Singapore has a very high level of development, not only banking, and a high standard of living as a result.