At the present moment, almost every country on this hot planet has decided that their economy will be served best by a type of international trade called: "FREE TRADE."
WHAT IS "FREE TRADE"?
"Free Trade" as the name implies is trade between countries with no import duties (taxes) applied.
Thus, the cost of a product to an importer is what the exporter is willing to demand.
This allows exporters in countries with very cheap labor to sell their products at such low prices that no company in the importing country can compete with the product at the level of its cost.
This is the major reason why almost all manufactured products sold in the USA and Europe are made in China or similar nations.
In addition, to make matters worse for the buyers of these goods, the importers attach Brand Names to the products, such as Nike, and sell them at prices that are huge multiples of their cost. (The Nike Company, for example, will buy shoes in Asia for approximately one tenth of what they sell them for in the West!)
The benefit of Free Trade accrues to the enormous international corporations that buy goods from countries where labor is unbelievably cheap and sell these goods to countries where labor is expensive and prices are traditionally high.
As a consequence of this Free Trade, labor in the importing countries becomes unemployed. The companies that employ labor and make products, cannot compete with the cheap foreign labor and they close; thereby putting their employees on the unemployment lines.
The few areas of employment are left in the Service Industry, such as health care and personal care and the mowing of lawns. There is also employment, for the time being, in the production of giant equipment, such as Boeing aircraft and Caterpillar machinery. It is only a matter of time before this type of industry is moved to China. We are already seeing General Motors open plants in China for the production of cars.
PROTECTIONISM
"Protectionism" as the name implies protects domestic industry from cheap foreign goods, by placing "Tariffs" (taxes) on those goods
as they enter the importing country.
This was the common practice across the worlds from the beginning of civilization.
Free Trade came into being in the last fifty years as the Elitists made a choice of abandoning the workers in their homelands and opting for much higher profits. In the past, Elitists protected their workers and were satisfied with the profits they made domestically. The new Elitists, however, have no allegiance to anything except money. By adding taxes the imported item was raised above the price of the domestically produced item, protecting the domestic manufacturer and his workers.
All countries, using Import Duties, protected their local industries and workers. The practice of Protectionism had been present on the Earth from the beginning of civilization.
This was a standard method of export/import trade until the latter half of the Twentieth Century when suddenly it was dropped.
WHY WAS PROTECTIONISM DROPPED?
There was a major change in the ownership of capital after the Second World War.
Whoever owns capital owns the underlying economic machinery that generates profits.
Owners of capital were formerly called: "Capitalists" and were seen as fat, greedy economic kings.
Karl Marx in his famous book: 'Das Kapital" considered "capitalists" as the source of all economic evil.
He once said that "Capitalists would argue about the price of the rope that would be used to hang them."
This type of wordage indicates that Karl Marx was a philosopher and not a scientist. Karl Marx wanted all people to have an equal amount of money. "From each according to his ability, to each, according to his need." was his famous statement which summarized his values.
But, life amongst living beings is based upon only one value: Survival.
Those who can survive in the constant struggle for nutrition and avoidance of predators, become stronger. Evolution shows that these individuals bestow their talents in the form of their genes to their genetic successors.
Humans are no exceptions to this rule.
Capitalists were, and still are, inheritors of excellent genetic traits, in terms of intelligence.
They realize that the accumulation of capital allows their offspring to continue to live in an environment which is conducive to good health, good education and well being.
In all species, the same rule applies.
