Laws against globalization.... 2915

Straydog

Well, the situation is more complicated that it seems. Bush regime did everything in his powers to make the globalization if not unstopable at least extremely painfull for American people if they will try to stop it. The fact that will be as painfull if they won't try it is just a side effect.

The issue with tarifs is the fact that India and China will retaliate with tarifs against US. Let buttume we bring the trade to a stop. China say: We won't ship anything to you until you pay all the debt to us. In meantime they can trade with Iran, Saudi etc... for oil. However, US won't be able to sell anything in China due to tarifs since US price + tarifs against US will be bigger than EU price. EU sell to them US no.

1. Look at your clothes labels. How many of them are made in US? 2. Look at your shoes labels. How many of them are made in US? 3. Look at your computers labels. How many of them are manufactured in US? 4. Look at your parts from your computer. How many of them are manufactured in US?

If trade come to a stop the prices of this commodities will jump 3 to 10 times. Offshoring in clothing industry is done for years and we have almost no clothing plant left here and machines from closed plants were moved to China long ago. Until we rebuild the plants from scratch and new machines to get our clothing production started again, we are going to pay for one pair of underware the same as we pay today for 2 business suits.

The US dollar will collapse. We will not be able to pay for our oil required to start rebuilding our economy. We may see hyperinflation of 10000-1 or even more. Without oil we have a hard time to even build ethanol plants. Because we need fuel to build them in the first place before we can use it to fuel our cars. Is going to be a total mess.

This is the reason I said tens of times on these newsgroups that tarifs are not a solution to slow globalization. There is however a solution: Increase corporate and capital gain taxes to finance from them: health care, full retirement, superior education and longer and better welfare for unemployed. Many countries already do that so there is no retaliation possible against it.

These taxes are payed by everybody regardless if they produce in US or offshore. However, the companies producing here will be able to eliminate their fixed expenses with pensions-401k and health care therefore the offshore companies will lose a strong advantage they have against US companies. And we keep the current consumer spending power so we are not going to hurt our economy.

Taking advantage of free education and gov. financed research centers we can do research for the next generation of technologies and the new discoveries will be implemented into small startups partially owned by gov. which (as shareholder) can prevent offshoring of the new technology until they sell the shares. Then we get a new cutting edge industry able to export goods China and India can not produce them yet.

This is the ONLY solution to globalization. Let start with rolling back idiotic tax cuts for the rich and corporations. These tax cuts hurt our economy and encourage offshoring jobs.