Tapsearch Com EditorFree Trade smothers Free Enterprise
July 15th 2008 02:57
Bizarre Politics Reports:
Global Free Trade mocks Free Enterprise
In our transformer money toy economy article we tell how our money making on money is running out of functions.
Following this, we show how Free Trade is smothering Free Enterprise. It is Raw Capitalism at its worst. By Ray Tapajna, Editor and Artist at Tapart News and Art that Talks
Free Trade and Globalization have made a mockery out of the Free Enterpise system.
Raw Capitalism has knocked out the Free Enterprise system. Financial leaders like Alan Greenspan chose to feature money products by making money on money instead of making things. For example, Greenspan liked the home equity market as a financial product. He thought money could be made by providing loans on the asset of homes that were growing in value. It seemed like a win win situation except for the fact it was based on an upside down economy as demonstrated in the fall of the mortgage and banking industry.
Every structure needs a foundation and many of the money products and investments are only stand alone products which can not sustain for any long period by themselves. A basic economy is needed to act as a foundation. The Free Enterprise system was the foundation until Free Traders and Globalists found a way to chop up economies and send them around the world for the sake of cheap labor. However cheap labor begets cheaper labor in a world of terrible need. And in the end you can not do business with people who do not have money. You first have to find a way to provide people with adequate capital for any system to work. With Globalization and Free Trade, you have workers making things that they can not afford to buy themselves let alone have any money left to buy anything the more prosperous nation has left to sell. In the end a working poor class grows in the more prosperous nations who soon find out they can not even afford the cheaper imports. In the USA, we now have a working class that has to depend on government help to survive. There are even homeless workers who do not make enough money to afford shelter. Many school systems are finding many children in attendance without any home address. About one third of the population in the U.S. live in poverty. This matches up with the fact that only about 38 percent of all workers in the U.S. qualify for unemployment insurance. The majority of workers apparently do not work long enough at any one job or make enough money in any given period to qualify. Workers are being sacrificed on the altar of greed. And everyone loses when 70 percent of workers pay more in payroll taxes than they do in income taxes.
In further posts we will go deeper into the story and explore what when wrong.
The old sayings apply here. What comes first the chicken or the egg or you can not put the cart before the horse.
History demonstrates that we divide into cultures, societies and nations. We break down into units to better serve the needs of each community. Globalist Free Traders try to cut out parts for the sake of making more money for a few. They try to make a one size fits all world economy but forget what it takes to make each society to be self sufficient. When production is moved from place to place irregardless of the specific needs of each community, burn out societies are left behind when the production moves out.
The only thing that will work is local value added Free Enterprise economies fitted to the needs of whole commounities and not just parts. There has to be added stages of value added in each setting from raw product to the retail or end user stage with people adding to the value at each level for the sake of the whole society. Free Enterpise was chosen as the way to do it. In the Free Enterprise system, owners grow or make something and put a price on their efforts to provide them with a decent living. At the same time, the owner has to pay the workers he uses a living wage in order to afford the things the need in the setting where they live.
I was surprise when I read Alan Greenspan's book The Age of Turbulence that he wrote hardly nothing about the Free Enterprise system and the term Free Enterprise was not even in the index of his book. Apparently we have a type of Capitalism that considers Free Enterprise a hindrance in making more money. Free Trade is not trade as historically practiced and defined. In the past, trade was based on trading something one nation had for something the other nation had. It was never based on moving production from place to place for the sake of cheaper labor which even absorbs the high cost of long haul shipping and its negative impact to the ecology.
Free Trade has made human beings the main product being traded in a new kind of slave trade. Workers are put on a world trading block to compete with each other for the same jobs. No job is safe - low tech or high tech. Research and development is a waste of time too if in the end the production phase goes elsewhere.
Who said we had to compete like this in a global economic arena. The Global Economy certainly has not evolved in any natural economic way especially when millions have lost their jobs during the most massive dislocation of jobs in U.S. history. No natural rational process would let this happen. However a few elite groupings in government, big business, the media and in the academic world drove the process not matter what the consequences were.
Following this, we show how Free Trade is smothering Free Enterprise. It is Raw Capitalism at its worst. By Ray Tapajna, Editor and Artist at Tapart News and Art that Talks
Free Trade and Globalization have made a mockery out of the Free Enterpise system.
Raw Capitalism has knocked out the Free Enterprise system. Financial leaders like Alan Greenspan chose to feature money products by making money on money instead of making things. For example, Greenspan liked the home equity market as a financial product. He thought money could be made by providing loans on the asset of homes that were growing in value. It seemed like a win win situation except for the fact it was based on an upside down economy as demonstrated in the fall of the mortgage and banking industry.
Every structure needs a foundation and many of the money products and investments are only stand alone products which can not sustain for any long period by themselves. A basic economy is needed to act as a foundation. The Free Enterprise system was the foundation until Free Traders and Globalists found a way to chop up economies and send them around the world for the sake of cheap labor. However cheap labor begets cheaper labor in a world of terrible need. And in the end you can not do business with people who do not have money. You first have to find a way to provide people with adequate capital for any system to work. With Globalization and Free Trade, you have workers making things that they can not afford to buy themselves let alone have any money left to buy anything the more prosperous nation has left to sell. In the end a working poor class grows in the more prosperous nations who soon find out they can not even afford the cheaper imports. In the USA, we now have a working class that has to depend on government help to survive. There are even homeless workers who do not make enough money to afford shelter. Many school systems are finding many children in attendance without any home address. About one third of the population in the U.S. live in poverty. This matches up with the fact that only about 38 percent of all workers in the U.S. qualify for unemployment insurance. The majority of workers apparently do not work long enough at any one job or make enough money in any given period to qualify. Workers are being sacrificed on the altar of greed. And everyone loses when 70 percent of workers pay more in payroll taxes than they do in income taxes.
In further posts we will go deeper into the story and explore what when wrong.
The old sayings apply here. What comes first the chicken or the egg or you can not put the cart before the horse.
History demonstrates that we divide into cultures, societies and nations. We break down into units to better serve the needs of each community. Globalist Free Traders try to cut out parts for the sake of making more money for a few. They try to make a one size fits all world economy but forget what it takes to make each society to be self sufficient. When production is moved from place to place irregardless of the specific needs of each community, burn out societies are left behind when the production moves out.
The only thing that will work is local value added Free Enterprise economies fitted to the needs of whole commounities and not just parts. There has to be added stages of value added in each setting from raw product to the retail or end user stage with people adding to the value at each level for the sake of the whole society. Free Enterpise was chosen as the way to do it. In the Free Enterprise system, owners grow or make something and put a price on their efforts to provide them with a decent living. At the same time, the owner has to pay the workers he uses a living wage in order to afford the things the need in the setting where they live.
I was surprise when I read Alan Greenspan's book The Age of Turbulence that he wrote hardly nothing about the Free Enterprise system and the term Free Enterprise was not even in the index of his book. Apparently we have a type of Capitalism that considers Free Enterprise a hindrance in making more money. Free Trade is not trade as historically practiced and defined. In the past, trade was based on trading something one nation had for something the other nation had. It was never based on moving production from place to place for the sake of cheaper labor which even absorbs the high cost of long haul shipping and its negative impact to the ecology.
Free Trade has made human beings the main product being traded in a new kind of slave trade. Workers are put on a world trading block to compete with each other for the same jobs. No job is safe - low tech or high tech. Research and development is a waste of time too if in the end the production phase goes elsewhere.
Who said we had to compete like this in a global economic arena. The Global Economy certainly has not evolved in any natural economic way especially when millions have lost their jobs during the most massive dislocation of jobs in U.S. history. No natural rational process would let this happen. However a few elite groupings in government, big business, the media and in the academic world drove the process not matter what the consequences were.
| 54 |
| Vote |
Add To: 
subscribe to this blog
Comment by Tapsearch Com Editor
Ethics Box
Stories behind News in Global Economic Arena
The Rationale Quest
The World's News
Tapsearch explores untold stories
Comment by Jonathan Biviano
Marriage Bits
Lets take the Colombia deal for instance. We pay a 35% tarriff on whatever we ship to THEM, yet they only pay 6% on a portion of what they send us. There is a large truck company in Kentucky that makes huge $200,000 earth movers and such. Colombia is one of their major customers, yet they can't buy as many, and create as many American jobs as they could if the trucks didn't immediately cost $235,000, with that difference going into government coffers.
Do you truly think that the economies of China and India would be booming to the point that they are a sticking point in the global warming debate if it wasn't for globalization?
We want less people in poverty and more working? Than work to make our products easier to buy overseas by taking off tarriffs. Then the products become more affordable to people in other nations and people in the US have to make more of it.
The reverse is also true. The cheaper goods coming into the US are, the more people will buy them, the more money that flows to those other nations.
Anybody can write a book picking anectodal cases out to paint a broad picture. But the reality of how far economies have come belies it. Broad generalizations and anecdotal "proof" does make fact. Where would a worker making products for American companies in a third world country work if not at the American factory? Should we pay them what we would pay an American if they are still making more than the median income for their countrymen and able to work at all instead of selling beets from their shanty?
Unemployment in this country is still lower than the average in the 90s, and there will ALWAYS be some unemployment in a meritocracy like the US.
Comment by Tapsearch Com Editor
Ethics Box
Stories behind News in Global Economic Arena
The Rationale Quest
The World's News
Tapsearch explores untold stories
Personally, I witnessed more than a million workers in just the computer industry lose their jobs. I was with several. None survived. This translated to more than a 100,000 jobs just in my own sector of employment and business. I watched as a 1000 competitors in just a tri-state area go out of business. I held the line to the end for the last micro computer made in the USA. Our Ohio region was once a center of high tech but now it is sunk in poverty.
Your example in itself indicates part of the problem when there is not a parity in the exchange of goods in terms of tariffs.
However, there is much more to it than this. So called Free Trade is not really based on the exchange of products but it is mostly about moving production from place to place for the sake of the cheapest labor. It is also silly to call something an export if you are shipping a component outside the USA to a factory that was once in the USA.
A working poor class has been created in this country who are bound to government and private support systems to exist. Even Wal-Mart reports that their shoppers are running out of money before the end of the month indicating that the working poor are now finding it difficult to even afford the cheaper imports. Workers abroad who are making the products can not even afford to buy the very things they make let alone have anything left over to buy anything the U.S. has left to sell.
Hurricane Katrina not only exposed a vast underclass in the USA but a hidden silent depression existing there which most likely could be repeated throughout our land.
The unemployment reporting does not match up with the past and only about 38 percent of all American workers now qualify for unemployment insurance which is a good indicator that the majority of workers are not making enough money in any given period or working long enough to qualify for unemployment.
Unemployment reporting in the past was primarily based on full time 40 hour a week jobs and benefits.
Today, a person making only a $100 a month is considered employed. Even a person who is looking for a job and who is helping out on the family farm or business working for nothing is considered employed.
The U.S. was able to launch the Marshall Plan to duplicate our success with the most awesome industrial power in the world. The Marshall Plan helped to restore Europe and Asian economies this way. It proves we need to duplicate success and not chop up economies and send the parts around the world.
The Lend Lease act is another example of real Free Trade pointing to the fact you can not do business with people who do not have money. You first have to find a way to get them the money. President F. Roosevelt said he would not let the dollar stand in his way as he send "free" goods to U.S. allies. This not only help win World War 2 but it launched the most awesome industrial might the world has ever known. ( Our Lend Lease articles at Our Lend Lease article is the most popular article at ezine articles. ) Also see We chopped up the golden goose that layed the golden egg
Apparently, we have lost World War 2 , fifty years later.
We do need to study the negatives of the industrial revolution and go from there for the sake of mankind. Shifting production from place to place and calling it Free Trade is not the way.