Category: Free Trade

GLOBAL ALLIANCES, FRIENDS, AND ENEMIES

 

Two horses running in front of a sunset.
Global alliances should be more than military alliances. They should also be reciprocal open, free trade alliances to be effective.

The United States of America is involved in numerous global alliances that are military and defensive in nature. Unfortunately, most of our military allies are not necessarily economic, free trade, allies, partners, or friends. When it comes to international trade and economic agreements, the unstated contention of President Trump is that the United States is primarily confronted by international trading opponents or enemies. In my opinion, true global alliances should be totally reciprocal, politically, economically with respect to trade and monetary policy, and militarily. After all, true allies or friends don’t take unfair economic and trade advantage of allies or friends. Allies do not drain the economic resources and strength of their allies.

The North Atlantic Treaty Organization (NATO) is one of the largest military alliances to which the United States is a signatory. My contention is that the majority of the military allies in NATO are not economic friends of the United States. The European Union (EU) members of NATO, members of the North American Free Trade Agreement (NAFTA), and other trade partners act more like economic enemies. The same could be said of most Pacific Rim military allies. The Chinese, North Koreans, Iranian and other Middle East countries, and socialist South American nations are also trading advisories. With trading friends like these, who needs trading enemies?

Consequently, when our so called global allies threaten to challenge our proposed tariffs at the World Trade Organization (WTO), we should immediately challenge their existing tariffs, trade barriers, and subsidies to selected industries that provide a competitive advantage for their products on the world market with the WTO. To protect our agricultural products, if allies place barriers or tariffs on our agriculture products, we should not allow competing products into our nation to protect prices for our farmers. With the largest economy in the world, our allies need to trade with us more than we need to trade with them. Again, truly strong global alliances are fully reciprocal.

When critics and global free trade proponents say that it is bad policy to start trade wars with allies, they fail consider the possibility that military allies are not necessarily economic or trading allies or friends. These allies are already waging a trade war with the United States. They also fail to acknowledge that global free trade is a myth. Military allies that levy tariffs that are ten times what the United States levies on the same category of goods or erect trade barriers for United States products or commodities are not economic or trading partners and allies. Military allies that fail to contribute equitably to their military obligations within global alliances are questionable allies. Free trade and military obligation should be reciprocal in all areas.

The Merriam-Webster, On-Line Dictionary definitions of two terms related to this discussion are relevant. Globalism is defined as “a national policy of treating the whole world as a proper sphere for political influence.” Influence is defined as “to affect or change without use of direct force or authority.” In my opinion, globalism is currently used most often in reference to global trade or the global market that is not characterized by free trade. The reality of international trade is that the United States has little significant influence that positively affects our economy, manufacturing, labor force, and personal or family income. That is why the United States has a huge trade deficit. That is why President Trump is renegotiating most of our international trade agreements and putting America first. Consequently, globalism only applies to military and defensive alliances but not to economic and international trade agreements.

In my opinion, it is time that our global alliances are composed of military allies that are also our economic and international trade allies rather than our economic and international trade adversaries. Our allies need to stop depending on the United States to finance their defense needs and economies in general. The world needs open, fair, reciprocal, and truly free trade.

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GLOBAL FREE TRADE: REALLY?

 

The idea of global free trade or that the global market place is an open free market place is a damn lie. This damnation is spread by the World Trade Organization, progressives, many of whom are closet capitalists, globalists, international conglomerate capitalists, so called free-traders, conservatives, RINO’s, business pundits, and most intellectual elites. The lie comes from deep in the elitist Washington, DC, globalist swamp.

A red and white background with the word globalization written in it.
There are at least 6 reasons that the idea of global free trade is a damn lie!

Global free trade does not exist when 1) countries refuse to allow any category of products made in the United States (US) into their country, and we allow the same category into our country; 2) countries impose high tariffs on any category of products imported into their country, and we impose tariffs that are a fraction of those imposed by so-called œtrading partners; 3) other countries subsidize production of categories of products, and we do not subsidize production of the same category of products; 4) other countries do not impose costly environmental, health, and safety regulations on energy and production facilities that are required in the US; 5) other countries tolerate theft of intellectual property for new or improved products from US businesses without paying for use of the intellectual property or imposition of penalties when these products enter US markets; and 6) other countries manipulate international money markets for their benefit. If the so called global free trade experts were honest, they could add to my list of real global free trade impediments. Whether or not the announced Trump Administration tariffs will be good for our economy and labor force in general, the argument that tariffs violate free market principles is void because global free trade does not exit. The argument is based on a lie. No true global free trade market exists.

The result of globalism, as now practiced, is global wealth redistribution. The $800 billion US trade deficit is global wealth redistribution. Virtually all of the so-called œFree Trade agreements involving the US constitute wealth redistribution since they result in trade deficits with the other countries involved. The reality is that the redistribution has cost the US labor force jobs, lost wages, and lowered benefits which were transferred to labor forces in developing countries.

In my opinion, most progressive policy initiatives are based on Marxist philosophy, especially wealth redistribution. Similarly, capitalists seek to expand markets and increase their profitability which requires decreasing costs and opening of new markets in developing countries or increasing income, especially disposable income, in new and existing markets resulting in increased customer purchasing power. Although the ultimate goal, increasing consumer or personal incomes and buying power, is the same for both progressives and capitalists, the method of accomplishing the goal is drastically different. Interestingly, globalism often unites progressives and capitalists when nationalism, protectionism, and tariffs are the subject of debate and discussions.

Unfortunately, US laborers have borne the brunt of the adverse effects of globalism, lost jobs lost opportunities, stagnant wages, and regional economic decline. Through factory relocations to the developing world, capitalists achieve their goal of reducing capital improvement and labor costs, and increased factory productivity. Progressive globalists achieve their goal of global wealth redistribution when new factory wages increase the standard of living, opportunity, and economic development in the regions where new facilities are opened.

Global free trade is a globalist myth. Until a global free market actually exists, the experts should stop insisting that tariffs will impede free trade. Global free trade does not exist. The œexperts should simply tell us that tariffs will increase costs and prices and are the same as taxes. However, if the threat of tariffs, force our so-called trading partners to open markets, reduce their own tariffs, end their subsidies, clean up their own environment, end intellectual property theft, and stop currency manipulation, then tariffs could start progress toward an unfettered global free trade where all the people of the world could move toward greater prosperity.

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