Vancouver 4 hours ago
When I was a child I understood as a child, knowing that comparative advantage meant that trade was forever a win-win proposition.
But now that I’m an old codger I return to Marx and the hard learned lesson that the parasitic nature of capital to labour is everything.
And, more than any other commentator, Dr. K has illustrated that capital has been grabbing ever more and that within labour the top has been stripping the bottom to the point where global capitalism now has a demand crisis, another point eloquently explored by Dr. K. The people who spend have no money while the few with everything are hiding it.
And somehow comparative advantage never got around to studying wage strength, the varying capacities of global labour to win acceptable if never just wages. Nor did classical theory consider people greedy enough to sacrifice the global environment to their avarice.
In advanced countries, labour has strength. In most countries, labour gets the last. Free trade works only when the treaty partners share roughly equivalent labour and environmental standards.
Otherwise capitalists try to squeeze every last penny because it should never be forgotten that the rich want everything, a lesson hard learned in my life. The overclass will never be satisfied know matter how many millions and Monets they own.
Class war has been continuously waged by the plutocrats. And to be frank, it’s time for the proletariat to seize back what is theirs. Smash the billionaires to smithereens.
Sararsota, FL 4 hours ago
There is a $553 Trillion dollarinternational derivatives market that operates largely outside financial oversight. The TPP will further distance corporations from governmental regulation.
Every empirical observation in the last 40 years of my life has confirmed the hollowing out of the American middle class.
You wonder why millions of Americans find Bernie a superior choice to a person who sat on the board of Wal Mart and who makes $250,000 speeches to Wall Street bandits?
is a trusted commenter Virginia 4 hours ago
Paul, I find your piece to be a mishmash of arguments. Bernie Sanders is correct on trade. During the past fifteen years, we have lost more than 60,000 factories and five million good-paying jobs. These disastrous trade deals were written for the benefit of corporate America and at the expense of everyone else. It enabled corporations to shut down plants in this country, move to low-wage countries, and then bring back their products into this country. American workers should not be asked to compete with workers who earn less than a dollar an hour, and countries that lack environmental and labor protections.
Since NAFTA, most workers have seen their income go down and the trade union movement has been severely weakened. The result has been two decades of the redistribution of income, wealth, and political power to those at the top.
George H. Blackford
Michigan 4 hours ago
The benefits of free trade to the desperately poor in foreign lands are a reality; the kind of reality that keeps me up and night and makes me ambivalent toward anti-free-trade policies. But that’s not what we are talking about here.
Keeping our exchange rates high so that American corporations can buy cheap abroad as they sell dear at home and take their profits in tax havens while everyone else goes deeper and deeper into debt is not free trade.
What’s more, the export-led growth model that is thought to justify this kind of ‘free trade’ has failed miserably. It led an increase in the concentration of income throughout the world (especially in the US) and to increases in debt relative to income in the importing countries that caused the financial catastrophe we went through in 2008, the economic stagnation that followed, and the social unrest we see throughout the world today. (See:http://www.rweconomics.com/Ch_1.htm ,http://www.rweconomics.com/htm/WDCh_2.htm , andhttp://www.rweconomics.com/htm/WDCh3e.htm .)
This has to change if we are to survive this catastrophe with our social, political, and economic institutions intact. (See:http://www.rweconomics.com/LTLGAD.htm .)
There is every reason to believe that Sanders will take this problem seriously. There’s no reason to believe Trump will contribute anything but bluster toward a solution or that Hillary will add anything but lip service.