Business lobbies and corporate groups have long touted the benefits of free trade, but what is it that they do now know, or do not want the general public to know? Indeed, while academia and business praise the merits of Adam Smith and his idea of
Shockingly, and in a twist of irony, business praises Adam Smith as the hero of modern economics, but strangely omit or forget the communist revolution that Karl Marx helped spark. What Marx said in short was that
The recession could put brakes on free trade
By SAM FLEMING of
Stop meddling in the free market. Not the sort of admonition you’d expect to hear from the People’s Republic of China, but this came from the admirably straight face of one of Beijing’s top trade officials, Yu Jianhua of the Ministry of Commerce.
Speaking in a packed room at one of Pittsburgh’s numerous Marriotts, he was responding to calls by the UK and US for China to boost its imports and contribute more to world demand.
Issuing such demands is an impingement of free flows of trade, he said piously. China likes to let the markets work for themselves.
This is, needless to say, poppycock. China’s government remains intimately involved in its quasi-capitalist system - not least via its control of the banking sector, pervasive Party influence in key industries, and its suppression of the yuan’s value against the dollar.
But this sort of sniping tells you something about the dialogue behind the scenes at Pittsburgh. While Gordon Brown hailed a ‘new system’ of cross-border cooperation, the G20 is more deeply divided than ever - and trade is one of the biggest sources of friction.
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Indiana affected by “free trade” dispute with China
By Marty Schladen and Jenni Glenn of Journal Gazette
A trade dispute with China over tires and chicken hits closer to home here than in most other regions.
Excerpt From Original Source With Comments & Permission Where Appropriate with original link below
Indiana is among the top states in per-capita production of export products. And many of the top products exported to China – electrical machinery and equipment and aircraft and spacecraft equipment, for example – are made in northeast Indiana, said Michael Hicks, director of Ball State University’s Bureau of Business Research.
A growing trade dispute, he said, could threaten those exports.
Hicks and some others see U.S. tariffs as a blow to free trade. But area supporters say it is the fair use of a rule meant to protect U.S. markets against a partner whose trading practices have been anything but fair.
The Obama administration on Friday imposed a 35 percent tariff on Chinese tires for cars and light trucks after a bipartisan commission ruled the imports had disrupted American markets, costing thousands of jobs. In response, China threatened to retaliate against American exports of chicken meat and auto parts, leaving some to fear the prospect of a trade war.
Original full article available at
One of the reasons that the Great Depression of the 1930’s was so severe is that when times grew tough after the stock burst of 1929, nations reduced trade with each other in order to protect their own industries and workers. This cycle spiraled out of control, leading to horrible economic conditions for many nations, including the US. These desperate conditions were a major catalyst to Hitler’s rise and Word War II.
Free trade proponents will argue that this is evidence that wide-open trade is good. However, it is really evidence of the opposite: The more you depend on other nations, the more their problems become your own. I am not for shutting off all trade, but rather having balanced trade. Balanced trade is where enough foreign trade is allowed to promote diversity and competition, but not enough to eliminate entire national industries and professions.
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