Is what they say about Free Trade wrong?

By John Derby
August 27, 2010

Suppose what economists say about Free Trade is all wrong? Suppose it does not solve the world's economic problems. What if it actually brings the highest and most properous countries down to the level of the average country?

Free Trade, in its pure sense, does not really exist. All countries have barriers which are set up to protect certain industries. In the United States these barriers are set up to protect any industry which is involved in national defense and security.

Other countries do other things to cause trade inbalances. The one which is most frequently criticized is the Chinese method of forcing the maximum work out of its people and then reducing the value of their money so their products will be purchased by other countries.

In essence China is a giant forced labor camp and that is why their production is so high.

Other countries use child labor, and or long hours, no benefits and in some cases inferior materials.

Meanwhile, our economists examine the reasons why our workers cannot produce at the same level and at the same cost as foreign workers. The reason is simple, there is no level playing field. Foreign businesses are not required to pay unemployment insurance. For many, there is so social security or medical insurance.

With each passing year our government heaps more costs on our producers, manufacturers and growers. When these businesses can no longer afford to hire as many employees, the government allows them to collect unemployment.

The fewer the jobs, the more unemployment is paid and our government continues to allow longer and longer times for people being on unemployment. Our politicians never seem to add up the cost of production when so many people are unemployed. This is a real cost and will eventually have to be paid back in taxes.

Like in other countries, when there are not enough jobs, the government feels it must make jobs and really never takes into account the long term cost of this debt which keeps building each year.

This is a debt which will be carried on the backs of our children and future producers, manufacturers and growers.

Does anyone bother to add up how much of the cost of goods actually comes from paying off past debt? Does any economist add up the cost that our future producers, manufacturers and growers will be paying just to pay off past debt?

We don't think so. What we think is that this country needs to start thinking about its own people and the economic pit that is being dug by going deeper and deeper in debt. It needs to start shutting some of the import doors and saying"let's put our own people back to work."

Free Trade may have been a catch word which sounded good in the past, but we think that Fair Trade is more important.

What is fair? Well it is fair to ask that there be a balance of trade if we trade at all.

For starters, why not a policy which states that we will only purchase as much from China as it purchases from us?