Yeah, I'm a posting WIZARD today. What that really means is that I cant seem to get traction on my day...I'm spinning my wheels, and this wastes valuable time. There.
But, as I ponder the useless for a little while longer, I found this. Does this seem senseless to anyone else? Can someone explain what I am missing on this one? Anyone who has taken the most elementary ECONOMICS (and -believe me- its not my strong suit) knows that absolutely unhindered free trade lifts everyone's economy. If everyone does what they do best, there is more (and cheaper) stuff for everyone...dont waste your resources (including taxes) on things you arent good at, or someone else does better (read: buy, if that's more efficient than making).
Ok, I guess that's only theoretical. But let's look at subsidies. Really, what that means is that American farmers are unable -even in their own country!- to successfully compete.
Now I come from a state that truly believes in subsidies. Maine has LONG been unable to compete in the paper-products industry, and they rely on massive government funds to keep people working and the machinery of the giant plants moving.
But essentially the funds prevent those people from developing USEFUL skills. Play this out a decade...when we cant afford to pay them to do inefficient or unneeded roles. What skills do they then have? How much money have we wasted by keeping them uselessly moving around for 10 years?
AND in the meantime, we have essentially encouraged (through an un-natural selection) our competitors to develop better methods and/or products. AND we have paid for all of this with our taxes (state or federal) that could have gone to re-education, technological advances or even a better welfare system! AND the products available to us as citizens are more expensive than they need to be!
What a great deal, huh? Protectionism (something I've long despised about China and Japan, and it wont/hasnt work for them, either): it gives us more expensive, lower quality products, higher taxes and almost no innovation. COME ON PEOPLE! Cut the cord and make our society evolve. If we cant do it best then give us access to those who can, and re-route our resources to innovating a successful product!
I know some people will suffer...that is always implicit in a selection process...jobs WILL be lost, hopefully only temporarily. Change is painful.
And I know I dont like the cheap, foreign-made crap in the Dollar Stores. But here's the deal: WE VOTE WITH OUR DOLLARS. If I buy cheap crap, I am supporting it...and I must have some need for it. Well, that isnt entirely true, but you get my point.
On the other hand, I buy local organic produce. It is much more expensive. For me, it is valuable to support my community and I want to know where my food comes from. I know it is the most nutritious, safest food reasonably available to me...and I will pay a premium for it. Apparently I am not alone, as this (small) section of the farming industry is thriving. Perhaps that is a message to BigBusinessFarming? Get in touch with the people, the land. I know...easy for me to say. I dont have millions in heavy equipment, debt and overhead. But that was their business error, as an industrial society we need to evolve and have a bit more agility. (again, easy for me to say)
Lest you think I'm pulling a NIMBY, Reusker's business has seen this. His software development company suffered SEVERELY when jobs went to India. The fact is, his company couldnt do the job as well. Actually, all those people are now coming back...but that's the wave of change. Either you are fit enough to survive (and deliver what the people want) or you drown. Its the benefit of a free trade, a market economy, democrazy and economics. You'd think it would be an American value, wouldnt you?
Heartless though it might sound, I really think that is how is SHOULD be an American value. These expensive liferafts arent serving anyone well in the long run. The US government is really sucking out on this one.
Sucking out on this one? You are too kind. The government is sucking out on a whole lot more than just that!
Posted by: reusker | July 24, 2006 at 11:29 PM
The only free trade that actually works well is a balanced free trade-I have sheep, you have vineyards, and we trade off wine for wool.
At the very least, there is no "free" trade with a country that has no environmental regulations, allows 50 cents an hour as the prevailing wage, and sells office furniture made by prisoners in the DPRK. BEcause of our commitments to human decency and environmental standards, that is a competition we cannot win if the good we are trading in are the same.
Posted by: JollyRoger | July 26, 2006 at 09:13 PM
I read the post and thought about it...what you wrote here on many levels makes sense but it lacks the harshness of reality. It's like there are many things about communism that sounds good in theory but it practice it never works out. I agree with Jolly Roger, free trade is geat if it is fair trade.
Posted by: sally | July 26, 2006 at 11:33 PM
Hey, I'll concede that ALL economies have "unfair" distributions. I'd hate to be a farmer in the Sahara, yes. But I would say that would be a reason NOT to do so! I was raised to believe slave wages were wrong, but my perspective is different (cant live on 50c an hour in USA, but you CAN in some places I've spent long periods of time). The reality is that if we can NOT deliver a product or service the most economically, then we should NOT be doing it, but buying it. Subsidies put trade entirely out of whack...they remove ANY balance -however imperfect- that a market might achieve. Even the slightest subsidy makes trade an almost purely political issue (tell me THAT is a perfect system - HA!). Prices DO go up, and quality probably never does...and what about innovation. I concede its an imperfect system, and your points are true, but my conclusion (anti-subsidies) stands.
Posted by: Meg | July 27, 2006 at 12:07 AM
I'll *also* concede that you are probably MUCH better informed and politically better-read than me! My news-junkie days are behind me, and I very much welcome informed opinions to keep my mouthy self in line!
Posted by: meg | July 27, 2006 at 12:11 AM
No, no Meg you are maybe not as top of the political news (honestly, who is?), but you are at the very least open to hearing both sides of the issue!
Posted by: sally | July 27, 2006 at 02:16 PM