Why Free Trade Is Failing America
http://www.axcessnews.com/index.php/articles/show/id/19214
By Peter Morici
(AXcess News) Baltimore, MD - No economic policy could better serve Americans than genuine free trade but open trade policies are failing Americans.
Free trade is a compelling idea. Let each nation do more of what it does best, and specialization will raise productivity and incomes.
Americans are not sharing in those benefits because President Obama, like President Bush, permits China and others to cheat on the rules, unchallenged, to the detriment of the U.S. interests he was elected to champion.
The World Trade Organization has greatly reduced tariffs, prohibits virtually all export subsidies, and regulates other national policies that could subvert trade, such as health and product safety standards arbitrarily slanted to favor domestic suppliers.
For these rules to optimize trade, raise productivity and boost incomes, exchange rates must adjust to reasonably reflect production costs. To buy Chinese televisions, Americans must be able to purchase yuan with dollars; however, an artificially strong dollar that overprices U.S. tractors and software in China will unravel the benefits of trade by denying Americans opportunities to export to pay for those televisions (MORE)
Lessons learned: Why KIA Cars and Chinese Appliances and the merchants that sell them hurt the Toledo Economy.
By wolfman - Posted on January 6th, 2010
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AMEN!!!! " No economic policy could better serve Americans than genuine free trade but open trade policies are failing Americans" Thanks for pointing this out wolfmeister, now you are getting it. As the author states "genuine free trade" would be tremendous, but government policies from both Dems and Republicans have denied any real chance at that.
Here's to the crazy ones, the rebels, the troublemakers, the ones who see things differently -- they're not fond of rules... You can quote them, disagree with them, glorify or vilify them, but the only thing you can't do is ignore them.
Fred the fact that free trade doesn't work for average Americans (this includes your misguided audience at WSPD) is Morici's point. The influence of lobbyists who buy our political system for the benefit of the few which has directly affected the Toledo Area. Just look at the flood of KIAs in Toledo. Fred how many America cars are sold in South Korea? Around 5000 yet we import Hundreds of thousands from Korea does that sound like free trade is working for America?
~The greater the ignorance the greater the dogmatism~
Sir William Osler
Many of my friends are wondering who allowed the KIA Sign at Central & I475 to be built. We the public find it a major distraction especially exiting I475 north to Central Avenue. At night this behemoth lights up the heavens to a point you can't see where you're going. Who allowed the unsightly pollutant. I found out through further investigation that the signage at Taylor Kia has numerous complaints. To register your complaint call Steve Colony ODOT phone # 419.373.4440 also call Sylvania Township Zoning @ 419.885.5276
Are they not in violation of The Highway Beautification Act (HBA) of 1965?
http://scenic.org/pdfs/HBA%20A%20Broken%20Law.pdf
~The greater the ignorance the greater the dogmatism~
Sir William Osler
I think you might be reaching a little with that one.
I pass that sign frequently. (At least 10-15x a week - combination of day and night.) Its noticeable, but certainly not to the point where its a "major distraction." And it certainly does not light up the sky so that you "can't see where you're going."
P.S. I don't own a Kia nor would I ever purchase one. In fact, every car I've owed has been a Big 3 vehicle. That being said, I still think you were reaching with the critique of the Kia sign.
Sarah the sign is in violation. Its too bright changes it message too often and my personal opinion it looks trashy for Sylvania. What's next a flashy strip club?
I found out through further investigation that the signage at Taylor Kia has numerous complaints. To register your complaint call Steve Colony ODOT phone # 419.373.4440 also call Sylvania Township Zoning @ 419.885.5276 ask for Tim Dewitt.
~The greater the ignorance the greater the dogmatism~
Sir William Osler
Chrysler and GM are doing so bad that wolfman is scared of Kia! LOL
MikeyA
Because I make my car buying decision from what I see from the road.
MikeyA
Focus on the demand... not the supply....
OK, so what if Kias "flooded" the US market. There were lots of US built cars flooding overflow lots all over this country when inventories were up. That didn't spur consumers to buy them.
What drives the importation of goods is CONSUMER DEMAND! Demand for $800 42" LCD TVs, Fresh strawberries in the winter, swiss watches, French wine, is what keeps those goods here. Selling a cheap import car does not ensure success. Remember the Yugo, Hyundia's first try at the US market in the 8s, Renault? Those all flopped... because consumers did not want them.
Consumers are chosing Kias instead of cars from Honda, Dodge, Ford, etc. WHY? Because Kia is doing a better job of providing a vehicle that meets a consumer's needs at a price they are willing to pay.
The argument "how many US cars are sold in Korea" is a totally different issue. Chrysler has no intention of wanting to sell there. They don't have the resources to even think about that... even Ford and GM should focus on trying to win back the market share here rather then trying to sell in a new market with unique product and cultural demands. GM already has ownership of Daewoo in Korea, where do you think they got the Aveo? Also, both Ford and GM (Holden) have a presence in Australia (Design & Manufacturing) that would be better suited to supplying those markets from cost standpoint.
Would I like more people to buy US-made cars. Sure. Buying Fords made in Michigan, Hondas made in Ohio, or BMWs made in South Carolina does provide more economic impact (wages, materials, services) to the US than a car made overseas and sold here. But this is a free society. We make our choices, and have to live with them.
Stock up on plywood Tim because that is a growth industry in Toledo also. Plywood for your windows to protect the home from rising crime of the unemployed, plywood for the foreclosed homes that no one can afford because everything is made off shore, and of course plywood for the Hovervilles under the bridges of Toledo. Your simplistic thinking is why the country is in the funk it is.
~The greater the ignorance the greater the dogmatism~
Sir William Osler
Kia just opened their first manufacturing plant in Georgia. Kia is a subsidiary of Hyundai, which built a large manufacturing plant in Alabama a few years back, and was a partner with Chrysler in the major engine plant in Dundee. Meanwhile GM and Chrysler have built plants in Mexico and Communist China while attaching themselves to the government teat. So lets get realistic here. Buying a Hyundai or Kia is more likely to result in profits being reinvested in this country than if you buy a Buick or Chrysler. If only those new plants were UAW, right wolfie? Then everything would be sunshine and lollipops....
I know all that about KIA and Hyundia and the right-to-work state that supports a poverty workforce. They , the Koreans export way more cars than they build south of the Mason Dixon. In fact some of the former managers from Jeep are now working at these plants. Listen lady I worked in the business I know what the HELL is going on. Your a FOOL if you support the non union brands. It only contributes to the race-to-the-bottom. The "educated" think this does not affect them they can buy what they want until the free trade hand comes down on them an cuts their wages. Did you not hear our hero Pilot Captain Chesley B. Sully Sullenberger complaining this summer of pilots working for $20,000 a year after the bankruptcy of the airlines? Do you think a pilot is worth that kind of money? HELL NO! Some pilots are working second jobs to pay off their student loans. If that is what you want for you and your children then keep believing the poison that the right wing news media is spewing.
Let me ask you this since we passed all these free trade agreements with the world has your standard of living gotten better? How about your family? Exactly you've been had by Wall Street Politicians!
~The greater the ignorance the greater the dogmatism~
Sir William Osler
Take a look here for more of the details about the $20,000/year pilots.
http://www.injuryboard.com/national-news/amid-pilot-accolades-%E2%80%93-...
Looks like $22/hr-$200/hr is the current range.
If consumers want $59 airfare, you are going to have to lower costs. Unfortunately labor is easier to cut cost rather than fuel, planes, landing fees. If consumers are not willing to pay to have a higher paid (Union or not) workforce supplying thier goods and services, there are not too many options.
Unless the consumer is willing to pay more for goods/services to support high wages, this is what you get:
- Keep high priced workforce, price to maintain some profit, market share goes elsewhere, company is unprofitable and eventually closes.
- Pay workers less to provide similar products/services (will likely cut costs here as well) to try and compete. Lack of differentiation (cutbacks) causes consumer to solely pick on price. If you are the lower one, you win otherwise you lose.
- Move offshore for lowest possible labor cost and supply WalMart.
You can blame Companies for going to the Southern US, Mexico or overseas for lower costs if you want. When consumers want lower cost, someone will supply that. If the others don't compete, they will fail. Consumers drive companies to supply their needs.
And to answer your question.... yes, my standard of living has gotten better now, better than what my parents had. Same for my two brothers. Extended family is 80% better/20% worse.
Fundamentally it comes down to choices... education, career choice, work ethic, and adaptability to change which will determine if you fare better or worse. I see it in my family, and I see it in others.
There's a reason people with an education normally don't work for a union. They're not that dumb.
Oh and BTW the majority of pilots don't have "student loans" they come from the military. That training is free. In fact you're paid to become a pilot. However, to be a pilot in the military you must have a college degree because you have to be an officer (there are exceptions to this i.e. Army rotary pilots don't have to be commissioned but rather appointed officers and thus don't need a Bachelor's).
But again most of that education is free. All the student loans I have come from my college time prior to being in the military (and some services pay those).
MikeyA
If you don't chew Big Red.... **** you!
MikeyA
Wolfman's got to chew on the hard truth that the less money we NORMAL WORKERS are paid, the less money we have to support the ELITE WORKERS -- the unionized ones.
You union guys have literally priced yourselves out of your jobs. Nothing can stop this. Your unions are even tearing themselves apart over the issue ... the "two-tier wage system" is an excellent example of that.
This is not actually a "race to the bottom". It's a normal correction of unsustainable lifestyles. The American lifestyle cannot continue. It requires too much energy and too many materials. We are a wastrel culture. That is what you're really lamenting, here.
You union guys need to get back in those factories and fight for the real thing you should have been fighting for, instead of outlandish, nearly criminal levels of compensation: THE RIGHT TO REMAIN EMPLOYED.
Meanwhile, as we normal workers grow ever poorer, we're going to drive you out of business anyway, since it's "us or you" on the chopping block, and we will naturally choose YOU. How much more notice do you require? Big blinking signs of your downfall have been posted around town since the 1980s. You're on Year Thirty of your legal notice. Are you honestly going to claim that you didn't know? That you weren't given enough time to adapt? Spare me the details of your delusions. Instead of saving money and preparing for a future of unemployment or non-union employment, you went on spending sprees.
Feel the love, Wolfman. You're afraid of the "bottom" since it means no more vacation homes and SUVs and wave skimmers and campers and other such consumer crap for the unionized, labor elite. But that's not a bottom. That's just RETURNING TO NORMAL for the laboring class. Time to go back to the 1960s, jack. I'm already there. I'm waiting for the rest of you to put your denial into a trash can and join me.
Wolfman knows of what you speak GZ. He has followed your writings on many a blog site. He shares your pain of a country that does not work for the common man. The UAW gave the working man the 40 hour work week, the pension system, health care, and health and safety for working Americans ETC. They lobbied/advocated for all workers. Now we see our paid political performers turn back time to an America long forgotten that no one remembers. Political hacks such as the recent visit of Bill Clinton sold us out to trade agreements that have us competing in markets that resemble 19 century America. Wolfman knows from your previous writings that you have pontificated the coming hard times of America. Allowing our politicians to sell out America to Wall Street Traitors that will benefit themselves is now coming to fruition a America for the few against the many. Wolfman remembers that the Big Three were making progress against the Washington Elite Globalists until their Bankster benefactors stole America. Since then America is saddled with corrupt government policies that has us beholden to communist China. Moneyed interests have China now with 10% annual growth and America with a dismal 2% if we're lucky. Wolfman remembers before Reaganomics how average Americans could live a secure life with living wage jobs and a secure retirement of middle class. Does Wolfman apologize for a life style that afforded him to buy what he produces to put his children through college no contrair he laments the oligarchy that controls 99% of American wealth while the the rest of us squabble amongst ourselves over the bread crumbs of the 1%.
~The greater the ignorance the greater the dogmatism~
Sir William Osler