Thursday, April 7, 2016
Both Trump and Sanders - Far Left and Right are Trade Isolationists Who Would Destroy Our Economy
Bernie Sander and Donald Trump are in two different parties but both isolationists on trade. So both fringes are the same, once again.
Fact is, China has NO Trade Agreement with us - never has -- so "Trade Agreements" don't explain job losses. We run deficits because we buy more of their stuff than they buy of ours. Only a trade agreement can reduce their tariffs for our companies to sell more there.
However, the article points out that Bernie expects low wage countries like Vietnam to pay U.S. wages as part of a trade agreement! That's absurd -they can't go from 65 cents to $6 an hour wages overnight. That's like asking New York rent in Iowa - doesn't work.
This article points out that high wages in the U.S. are because we make high end goods - like aircraft. In low wage countries they make low end goods, simple things like electronics or clothes. That will happen WITHOUT trade agreements folks - it is the free market at play on a global scale.
Taiwan was once the low wage country taking our low end manufacturing. Then it was China. Then it went to Korea. Now its Vietnam. Tomorrow it will be another country. That's how it works. It is a constantly changing dynamic.
China started low end, yet its labor wages have gone UP - to the point where they can't make it cheaper than us.
Isolationism hurts US. It's what caused the Great Depression, along with increasing tariffs. Trump and Sanders would be economic disasters with their strange trade ideas.
I spent many years promoting American made goods around the world and wrote about it in Better Times Ahead April Fool. I lost deals because we had no trade agreements with a country we wanted to sell our technology.
I saw plants move into other countries where there were no trade agreements, because it was the only way to avoid tariffs that would have driven up the price too much for the buyer. If you want to see how it works, check out Better Times Ahead and Agenda for American Greatness, at the link.