The problems with the American economy are easily explained when we look at the so-called “plans” coming from Washington. While Republicans sit at home and Democrats gripe that their solutions for a stronger economy are a compromise, both parties ignore what got us in the economic mess we are now in: “free trade”.
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Outsourcing’s Harsh Truth: It Is Killing Us! Economists are blind to the loss of American industries and occupations because they believe these results reflect the beneficial workings of free trade. Whatever is being lost, they think, is being replaced by something as good or better. This thinking is rooted in the doctrine of comparative advantage put forth by economist David Ricardo in 1817.
China’s economy is growing at astounding rates, while ours looks to be slipping back into recession territory. This should come as no surprise, since China actually has a plan for their economy, while our leaders simply pay back favors to their campaign sponsors. Unfortunately for us, China’s plan includes our demise.
It’s increasingly clear that so-called “free trade” agreements are no longer about trade. They are now global governance agreements that usurp our Constitution and undermine the power of our elected officials. One of the most disturbing aspects of these agreements is that it is not just foreign interests attempting to affect our laws through trade agreements, but our own companies as well.
Trade Deficit: The means through which foreign countries are able to amass the funds to buy out American companies and industries. Trade deficits are just like other debts in many respects. They must be repaid. When our country buys more than it sells from other countries, these other countries accept our dollars. These dollars must eventually return to the U.S. and be exchanged for something of value. Since we are producing less and less, in all likelihood, the trillions of dollars will come back to buy our assets and wealth producing companies. This has resulted in many of our core industries now being controlled and managed for the benefit of foreign companies and countries.