A while back I attended a town hall meeting hosted by Rep. Adam Kinzinger, R, Illinois. At that meeting I ask Rep. Kinzinger why everyone in government keeps ignoring the 800 lb. gorilla in the room, namely free trade agreements. Rep. Kinzinger's response was, I suppose, typical of any politician, especially a republican politician. He blew the usual smoke, then he expounded on the fact that we have a trade surplus with Australia, with whom we have a free trade agreement. He pointed out that we do not have a free trade agreement with China, and he was looking forward to the passage of free trade agreements with Panama, Columbia, and S. Korea.
Technically he was correct, insofar as China is concerned, Most Favored Nation trading status is not a free trade agreement. He completely ignored the fact that we have huge trade deficits with China, and with most countries with which we have free trade agreements.
Free trade agreements were designed with two things in mind. 1. Produce products with the cheapest possibe labor, and the least possible regulation. 2. Sell the product anywhere in the world, tariff free, for the highest possible profit.
NAFTA was implemented in 1994 and many other free trade agreements followed. We were warned about the giant sucking sound of good paying jobs leaving the U.S. for Mexico, and they did leave. Millions more good paying jobs went to China, India, Indonesia, etc., etc. When millions of jobs left, it not only created high unemployment, but it also created a labor surplus, further dragging down wages of the jobs left in the U.S. Some of the other effects were the abuse of foreign labor, the poisoning of their environments, record profits for many companies, and great stock dividends for stockholders. There are a few winners and lots and lots of losers in the game of free trade.
The winners buy homes in gated communities, vacation in expensive motor homes, and live better than ever before. The losers, tighten their belt, work two or three jobs to make ends meet, and pay much less income tax because they have much less income.
Then of course there are jobs that simply cannot be shipped overseas, or to Mexico, because the work has to be performed here. Jobs like teachers, municiple workers, prison guards, and many others. The fat cats in corporate America, don't like the fact that they can't outsource these jobs, so they pay politicians to pass laws that have the same effect.
This downward sprial in wages and benefits again leads to less and less income, and therefore less and less income tax being paid. All the while we have politicians spending money like drunken sailors, and wella, a depression.
When are the actions of corporations and our politicians, that have such a detrimental effect on the U.S.A. going to be held responsible, and charged with treason? I am 62 years old, and I pray that I live to see the day.
