Politics: J'accuse!

[sgtclub]

Originally posted by Skeks in the city
Originally posted by Atticus Grinch



Free trade with poor countries that have few natrual resources is often a stupid deal for developed countries. The only reason you've two minds about it is that you know it helps poor people in the third world by bidding up wages in their countries at the expense of workers in developed countries. Mass immigration into the US in the 1890s and early 1900s bid down wages in the US. US wages declined 1-1.5% for every 1% increase in immigration, and wages dropped even more in industries dominated by immigrants. In 1870, US wages were 136% higher in the US than in Europe, but by 1913, due to massive immigration from Europe to the US, the gap was cut in half. Finally, US workers lashed out by shutting down immigration in 1921.

You're looking at free trade the wrong way. Owners of capital and their libertarian cheerleaders like free trade for the same reason liberals like the judiciarry: it lets them do things they don't have the votes to do. Owners of capital and the libertarians see nothing wrong with repealing the 13th amendment, but that's no feasible, so the answer is to import goods and services produced by chinese people working as indentured servants or slaves. Owners of capital and libertarians don't like environmental protections, so the answer is to import goods and services produced by Chinese people with administrators that lack the power to shut down factors that pollute the environment, can only levy insignificant fines, and lack any incentive to shut down industry. Owners of capital and libertarians don't like the distributional results of giving US workers a wage premium by virtue of their residing in the US, the answer is to import as much as possible in any industry where US workers receive such a premium. Owners of capital and libertarians don't like a corporate income tax, so the answer is to import goods and services from countries that don't have one.

You see, ultimately, the goal of free trade is to force the US to adopt various measures that libertarians and owners of capital would like but lack the votes to get. Because, you see, if the US allows free trade, free immigration, and free movement of capital, the US is forced to compete with other countries for owners of capital to invest in the US. It pushes the US to reduce regulations, wages, taxes, and everything else libertarians and owners of capital don't like.

What we need are restrictions on immigration, trade and the flow of capital. The US isn't simply a system to promote capitalism; it's a democratic republic that's supposed to benefit its citizens, very few of whom are extremely wealthy.

At least you are consistent . . .