Getting free trade right

November 21, 2016


[Peter Morici| November 20, 2016 |Washington Times]

Globalization is inevitable and nothing about the presidential campaign changed that.

Ever since merchants first moved among human settlements, people have exchanged goods, blended cultures and specialized to create wealth, but trade also creates winners and losers. Donald Trump has seized on an enduring truth: whether America or any nation wins or loses depends on how well it manages the process.

Negotiating NAFTA and the bilateral agreement permitting China to join the World Trade Organization, Ottawa, Mexico City and Beijing were not looking out for American businesses and workers — that was Washington’s job and it didn’t do it very well.

Thanks to a $380 billion annual trade deficit with Mexico and China, communities in Pennsylvania, the Midwest and elsewhere are beset by shuttered factories and decay. Economic growth has slowed to less than 2 percent, and our national and state governments lack resources to adequately maintain the military, schools and infrastructure.

However, history teaches nations that turn away from global commerce, as did imperial China, risk stagnation and decay.

In Europe, Brexit is not a xenophobic impulse but a sensible reaction to the failure of European Union institutions to deliver a vibrant continental economy and the military resources and political consensus to secure EU borders and defend against terrorism.

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  • Systems seek equilibrium. Globalization would be that equilibrium if the poor were allowed to become richer as the rich become poorer. However, because Communist China is not allowing the poor to become richer, but the honchos of the Communist Party are becoming richer, the process is distorted.

    I have said for years that I would be okay with my standard of living being reduced if my counterpart in China was enjoying a commensurate improvement in his or her standard of living.

    Cheap goods from China saves the typical American family about $2,500 per year. However, the loss of jobs to China is costing the typical American family about $15,000 per year in lost wages. This is not a good deal.

    Here is where that money is going. http://www.dailymail.co.uk/news/article-2198246/Ling-Gu-death-Ferrari-crash-covered-Chinese-officials.html The son of a high-ranking official of the Chinese government crashed his Ferrari in Paris during a night of drunken revelry.

    We can trace this back to the Clintons, who rose to power with the help of the Communist Chinese. http://www.americanthinker.com/articles/2016/09/how_bill_clinton_sent_manufacturing_jobs_to_china.html

    Free trade is not free trade unless it is mutually beneficial. We are practicing free trade with China, but China is practicing mercantilism, which is the opposite of free trade. China has stolen our jobs, our technology, our intellectual property, and is draining our wealth, with the full compliance of our greedy, incompetent government.

    It’s time for America to take back what we created while China was wallowing in the mudhole that is communism.

    Donald Trump has given me renewed hope for the future of this country.