|It Is Time To Address Both Abusers And Imbalance|
The truth is we should call a spade a spade and question how much we really gain when we find Americans can no longer get good paying jobs because they have been exchanged to other countries in order to lower the price of goods we buy. In many ways, this is akin to a deal with the devil and over time it hollows out our middle class as more and more Americans find themselves dependent on government aid for their existence. We give those in charge of plotting our course in this world far too much credit for wisdom or that they will take our best interest to heart. It is important to recognize that inequality has grown over the years under such nonsense and making matters worse is that not all the countries that we feed wealth into are our close allies.
Well known economist Stephen S. Roach wrote an article which appeared on Project Syndicate on January 25th under the Business and Finance section; The greatest tragedy for the US may well be the toll all of this takes on the American consumer. “America first” – whether it comes at the expense of China or via the so-called border-tax equalization that appears to be a central feature of proposed corporate tax reforms – will unwind many of the efficiencies of global supply chains that hold down consumer-goods prices in the US (think Wal-Mart). With their incomes and jobs under long and sustained pressure, American consumers count on low prices for their economic survival. If Trump’s China policy causes those prices to rise, the middle class will be the biggest loser of all.
|12 Months Of Deficits Total Over Half A Trillion Dollars|
|Trade Deficits Add Up Rapidly|
Footnote; The article below delves into the difference between free trade and fair trade.