I have read this board for several years,learned much and am impressed with the logic of Mish and others when discussing economics and other issues;however,I have noticed that most discussions take place with certain things given as facts and this can distort how one understands the ideas presented.
New Technology Good Protectionism Bad
Globalization Good Unions Bad
I may have missed logic 101;but,I am not convinced that these and certain other given are true especially when taken to the extreme.
I would agree unions were out of control at one point causing prices to rise,American business to be uncompetitive and investors to keep their money in 15% tresuries rather than invest in new tech.
I understand globalization is ongoing and inevedable,it just seems the degree of hastening the process through generous trade agreements and American capitol was unwarented and amount to nothing but union busting on the part of American business.I cannot understand the logic of trying to sell products to people whose income amounts to a dollar a day,realizing we did receive the benefit of cheaper manufactured goods.Net net I believe american workers lost more than the chinese and others gained with upper classes gaining the difference.
Protectionalist policies certainly caused the 1930s to be more severe than necessary I believe because America was up and coming gaining market share as China is now.I am not suggesting that protectional policies are the way to go,just that I don't understand why it has to be an all or nothing policy,which would force American manufacturing workers to work for Chinese wages plus shipping cost.This situation doesnot create the healthy consumer ready to buy your products.
Please don't misunderstand,I am not arguing for going 180 degrees in the opposite direction just suggesting we may have hurried globalization more than a healthy amount.It just seems strange when we are willing lend money to anything that can fog a mirror,throw money at insurance companies and banks in order to cover losses which I think all will agree is contrary to capitalist thinking. WHY WOULD IT BE SO DESTRUCTIVE TO ENTERTAIN THOUGHTS OF ANY PROTECTIONALIST IDEA THAT MAY ROLL BACK SOME OF HUGE HEADWAY MADE TWORD GLOBALIZATION IN PAST COUPLE OF ADMINISTRATIONS.It seems for the sake of discussion many things are written in stone but only some of them are sacred,I just have difficulty understnding why. |
