FREE  TRADE

Moving factories from the U.S. to other Countries

We cannot move all of our low-education jobs to other countries.  There are many citizens who enjoy doing these jobs.  They need jobs in order to support their families.  The Republic cannot continue to exist without these jobs.  Everyone cannot be a Chemist or an Experimental Behavioral Scientist.  Nor can we continue to exist by cutting each other's hair, shining each other's shoes, suing each other, and buying 100% of our products from other countries.  Since 100% is disastrous, what percent is beneficial?

An economics textbook makes the statement that it was good for IBM to move a computer assembly plant to Mexico, because now the ex-assembly workers in the U.S. could be programmers.  This indicates a lack of knowledge about the normal distribution curve of intelligence.

Since moving a factory from the U.S. to another country is so beneficial, then the executives of the firm will be delighted to share the benefits by paying a special, higher income tax rate.

The U.S. will be destroyed by a revolution when a large number of the low-education people don't have a well paying job.  "Atlas Shrugged" in reverse.  We cannot "let them eat cake" when they have no bread.

Jobs Training Programs

First, many writers say that the solution to the country's unemployment is government jobs training programs.  Then, they say that say we must allow immigration because we don't have enough people to do the low-education jobs. There is some non-Mensa grade thinking going on here.

Balance of Payments.

How long can we continue to buy more products than we sell?  Instead of buying our products other countries are buying us.  How much of our land and debt will another nation need to own to destroy the U.S.?

The U.S. cannot continue to exist if it always buys from China more than it sells to China.  What percent of our dollars can China hoard before our money system doesn't function?   Suppose China injects its hoard into the financial system all at once?

Assumptions of Free Trade.

Free trade is based on the assumption that humans in one part of the world don't have evil intentions toward humans in another part of the world.  Human history indicates that that is a false assumption.  Why is history ignored?  There will always be a Hitler, a Stalin, a Hussein, a Ben Lauden, or a Mao.  Before any trade deal is made we should analyze the other nation and consider that that nation may be the next nation that wants to destroy us.  Are we selling scrape iron to our next enemy as we did to Japan before WWII?  Are we giving instruments of war to our next enemy as we gave to Russia during WWII?
 
People advocate free trade so that everyone in the world can "share" in the wealth.  Everyone does not contribute equally to the creation of wealth.

[An issue in my 2002 Election Campaign]