Monday, April 25, 2016
Globalist CEOs Oppose Trump and Sanders
In my Republican / Libertarian days I believed the standard position - Free Trade is what made America Great. And tariffs, such as the disastrous Smoot-Hawley act, lead to economic restriction and depression. I considered this position to be axiomatic and not worth much thought.
In 2008 my life changed after I took the Red Pill. This was the start of my journey in reevaluating all my political, economic, sexual and religious beliefs. I discovered that many of my cherished beliefs were based on myths.
Free Trade was once such belief that was shattered. It is a myth that America was founded upon Free Trade. Tariffs were common in the 18th and 19th centuries to protect American industries. During this time America expanded as a major economic power.
It is also a myth that trade restrictions had anything to do with the Great Depression of the 1930s. The Stock Market crash of 1929 was based on a speculation bubble that crashed. There is no evidence that trade was the cause of a general economic downturn. Certainly it was not the Smoot-Hawley act that impacted only 1.3% of the economy.
It should also be noted that while America and England were suffering during the Depression, Germany was booming economically. And Germany was a nationalist state that protected their industries. So if tariffs are bad, why did they work for Germany during that time?
The only thing that pulled the USA out of the Depression was WW2. And the economy boomed during the 1950s and 1960s as the rest of the world was rebuilding from the war or under communism. Free Trade worked in our advantage as we had no competition.
But as business has globalized, this has allowed for the labor pool to span across the world. This huge increase in the supply of labor has reduced real incomes and resulted in the loss of jobs in America and Britain. Our current Free Trade agreements have been a disaster for the average American.
Free Trade is great if you have a guaranteed job or if you don't need to sell your labor. You get the advantage of cheaper trinkets. However, it is a disaster for everyone else.