More Nonsense From Charley
The statist/socialist half of Charley Reese’s brain has asserted itself again. In today’s column on his King Features site, titled “Losing Our Country”, Charley falls for the straw man argument that “free trade” is destroying
What Charley doesn’t seem to realize, even though he (perhaps unknowingly) acknowledges it in the first sentence of his second paragraph, is that what we have today isn’t “free trade” at all, but “managed trade.” In fact, it should be referred to as “grossly mismanaged trade.” Small wonder that we’re in the dire straits as a nation that we’re in. It’s just too bad that Charley isn’t savvy enough about economics to realize that if genuine “free trade” were actually the order of the day, as just one component of a truly free market economy, he wouldn’t have had any reason to write such an editorial and could have spent his precious time writing one of his usually spot-on critiques of out-of-control federal dictatorship or our hyper-regulated, centrally-managed economy.
It is the latter in particular that is the real cause of job losses abroad and ever-increasing foreign ownership of our assets. Government in
As for the growing foreign ownership of American assets, particularly by Asian entities, I can only say, what else did you expect? After all, who do you think is financing our runaway deficit spending and reckless inflation of our currency? Although the Asian nations have been the biggest investors in
It is this combination of a state-shackled economy and irresponsible monetary policy that has led to the decline of the American manufacturing and service sector, not “cheap wages” in the
I won’t even go into the reasons why it would be unwise, as Charley suggests, to slap punitive tariffs on foreign-made goods in order to “compensate” for the lost profits to American workers. Three words should suffice: Smoot-Hawley Tariff. I could go on, but economists far more firmly grounded in the principles of the Free Market than I have made much better arguments (see here, here, and here, just for starters). The point is that without the distorting affects of state intervention in trade and the supply of money, a balance would be found that keeps all peoples and nations satisfied and that would restore the benefits accrued through free trade and the maximizing of comparative advantage.