Sunday, March 17, 2013

The Depression, Globalization and the Smoot-Hawley Tariff Myths: Something to Think About


It has been argued that the Smoot-Hawley series of tariffs did enormous damage to the economy during the Great Depression. The pro-globalist interpretation of the historical facts is that because America imposed massive tariffs, and other nations retaliated, this led to serious damage to the economy.According to the pro-globalist story, Smoot-Hawley caused, or exacerbated, the Great Depression because it severely impaired global trade.
The problem is, factually, this is simply not true.
1) The nation’s GDP fell by almost half (46%) - and this affected international trade, not the other way around. We lost jobs, people stopped producing, and what little we produced, was being consumed here. And with other nations suffering as badly or worse than we were, they were in no position to buy anything from us. Which meant that their retaliatory tariffs were redundant when it comes to their effect upon trade. International trade was hindered because whole nations’ economies took a nosedive. Not the other way around.
2) There is another factor that pro-globalists do not consider when arguing that Smoot-Hawley caused (or exacerbated) the Depression. This factor is almost never even brought up by anti-globalists. History shows that when Smoot-Hawley was passed, the United States was not running the kind of monster $250 billion annual non-oil ($500 billion with oil imports) trade deficit that we are running today. The United States, at the time, was running a slight trade surplus for most of the Depression yearsThink about it. Exporting goods generates more domestic jobs, and better-paying domestic jobs, than importing goods. If you pass massive across-the-board tariffs when you are exporting more goods than you are importing, and everyone else retaliates, you stand to lose your net export activity. You stand to suffer a net loss of jobs.IN THEORY; this did not really happen in the Great Depression because the jobs had already disappeared. Now, if you are importing far more than you export, you stand to lose imports - and you also stand to end a situation where domestic factories are closing down to move overseas.
If Smoot-Hawley was ever going to do even the slightest harm to the United States economy, the only time it would ever do so is if the United States is running a trade surplus: that means, Smoot-Hawley can only ever hurt the economy if we are exporting more than we are importing. Again, that is not the case today. We are importing more than we are exporting, and we are bleeding jobs out of the country as a result.
Ever wonder why China has succeeded so well? They slapped heavy tariffs on American products, for one. They also devalued their currency, for two. South Africa is also raising other, de facto trade barriers (“buy local”), and it’s working marvelously for themYet globalists say that trade barriers won’t work for America?
3) Finally, there is one last factor that the pro-globalists are wrong about: none of the anti-globalists are calling for an across the board shutdown of imports that Smoot-Hawley was aiming for. What we want is to reduce the trade deficit to zero. America runs the largest trade deficit of any country in the world, and we run a net trade deficit with almost every major country in the world. We are bleeding out more jobs than any other nation in the world. A $250 billion non-oil trade deficit is deadly, and it is most certainly unsustainable. Trade deficits like what America is running, have a direct impact on the national debt - $250 billion (much less $500 billion) annual trade deficits make the national debt grow. And you cannot stop this type of debt growth by cutting domestic spending. Moreover, trade deficits of the magnitude that America is running, also devalue the United States dollar.
Here is the ultimate reality that pro-globalists do not want to discuss.These trade deficits will end. There is getting around this. They will end. The question is whether they end with laws that act to balance out trade, or they end when the deficits destroy our economy - and all the other economies (such as China) that depend on exports to America.
There’s only so far an economy can go by bleeding another nation’s working class of their jobs.

Wednesday, March 6, 2013

Let me explain to you what Conservatism is all about.


Conservatism is about creating a Plutonomy - an economy driven by the rich and which serves only them. It is about forging a world in which Les Miserablesis to be looked upon as not going far enough.
The Conservative dream world is one in which the poor are left to starve, quietly, and if they protest, they are to be put down, violently. The Conservative world is one in which those left who toil for the rich, are serfs in a revived feudal society.
Question for you, folks, what do you have when every plot of land is privately owned and governed? That’s called Feudalism! What do you think privatization is all about? The private ownership and administration of all public lands and services: privately owned and governed. Want to see a clear example of private ownership and government? Check out ANY homeowner’s association or charter school. It ain’t a pretty picture. In some homeowner’s associations you can’t even fly the American flag, and charter schools discriminate against students with disabilities. Now think of an America where this goes on. everywhere. Want another example? Think of toll roads. Now, think of EVERY road being a toll road. That’s feudalism, and it is being revived as we speak. By Conservatives - Conservative Republicans and even a few Conservative politicians who label themselves Democrats (see: Blue Dog Democrats). You might have also heard of the term Corporate State. Also known as Fascism. That is what Conservatives want.
The next time you see a debate about taxes, privatization of public services or lands, international trade policies, welfare “reform”, or educational policy changes, ask yourself this:
1) Does it mean higher costs for you?
2) Does it mean less services for you?
3) Does it mean less jobs? Does it mean employers can screw you over even more? Does it mean more acts of discrimination are allowed?
4) Does it mean poor people will have less to live on?
5) Does it mean closing schools or excluding groups of people from said schools?
6) Does it mean closing down a factory and sending those jobs overseas?
On any given issue, whatever solution leads to a “yes” answer to the above, is what Conservatives will fight for. It’s just that simple. If you are not rich, the Conservatives want you quietly dead, or as a serf.
Believe it. It is the truth.

Tuesday, March 5, 2013

So, Venezuelan President Hugo Chavez died on March 5th and people are out dancing on his grave...

So people say he was an evil dictator? Maybe he was, maybe he wasn't. But, while history sorts that question out, let us first do some comparisons, shall we?

Between the United States and Venezuela:

  • Which country has the most people per capita, in prison?
  • Which country has warrantless surveillance programs?
  • Which country routinely kills unarmed foreigners with drone strikes, without due process?
  • Which country uses drones to watch over its own populace?
  • Which country imprisons peaceful protesters?
  • Which country has police gangs that run around shooting at people they THINK are suspects, without even determining that they are in fact suspects?


The answer: we've got plenty of our own problems to be calling Chavez a dictator.