America Cannot Compete with Chinese State-Run Capitalism
Free Market Capitalism operating in the present “free trade” environment cannot survive in open competition against state-run capitalism. Our free market is unregulated and unprotected. Chinese state-run corporate enterprises are given virtually limitless subsidization from their home governments, as well as from American state and federal incentives, to enter the open American market and break established U.S. industrial titans.
Our Lack of Planning and Unregulated Market Free-for-All is Facilitating Our Downfall and is Placing us in China’s Hands
China now has $3.2 trillion (three thousand two hundred billion) of our currency reserves. They can use these resources anytime they want to come here and buy us out. They can buy any of the companies available for sale on our open stock market, which they are now doing and which will very shortly make 21st century America a colony of China.
China earned their $3.2 trillion through their balance of trade surplus – on the back of our balance of trade deficit. They sell us products made in factories where employees are lucky if they earn $2-$3 U.S. per hour. American workers could never afford to work for such low wages.
Chinese State Capitalism is run and managed by the Chinese government for the benefit of China. Domestic champions are subsidized and pitted against foreign competition on an uneven playing field. In no instance does Beijing allow one of its titans to fall to overseas domination. The home economy is operated like a war to destroy capitalist competitors using every mean imaginable.
Guided Market Capitalism is the only way to compete against the state-run subsidized competition coming from overseas. The United States once employed a guided market approach to create the largest and most robust production and consumer economy in the world. Protective tariff and non-tariff barriers allowed American industry to grow and thrive for more than a century. They kept predatory overseas production out while creating a domestic market for goods and services.
“Free Trade” propaganda tells us that free market access is good for competition, creating the best possible products for American consumers. Americans are told that the only thing that matters is that high quality goods are sold at the lowest possible prices thanks to our free and open domestic market. We are told that goods imported from overseas are good for our economy because they are cheaper than domestic alternatives.
We are not told that every imported good represents money and jobs that the United States has lost. An imported electronic good represents income lost to producers overseas. It also represents a job overseas making electronics that could have been in America. In exchange for “cheaper” goods, we permanently give away our jobs and our money.
The United States needs a plan to stop the pervasive effects of unregulated free trade. We must ignore the free trade propagandists (the WTO, the USTR, and most members of Congress) and put the protection of our economy first and foremost on every legislative agenda.