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  • Click to view georgemarvin's profile
    Posted February 2, 2009 by
    Location
    Atlanta, Georgia
    Assignment
    Assignment
    This iReport is part of an assignment:
    Surviving a tough economy

    More from georgemarvin

    Is a little protectionism really bad for the economy?

     

     

    Let's tell the truth here.  We need FAIR trade, not necessarily just "Free" trade.  We don't really want to force our blue-collar work force to try to compete directly with foreign workers who work for 50 cents per hour, and our businesses to have to compete with foreign factories and warehouses with no health, safety regulations or environmental regulations, do we?  That's the "Free" trade that we have been subjected to for decades, which has forced many of our manufacturing industries to move abroad or close, and has forced our work force to work harder for less pay and benefits. 

     

     

    If we force our work force to compete directly with the people in countries without a minimum wage or even the basics of employee rights, we are going to strengthen the foreign comptetition at our own expense.  We need fair trade, not just free trade.  It is in our best interests to have an educated, healthy and well-paid work force, so we do need to regulate foreign trade to level the playing field.  That isn't to say that we need to "buy American" even if the American companies provide a really crappy product for ten times the price that a foreign competitor charges. 

     

     

    FAIR trade would just require that any foreign company that imports items into the U.S. pays its workers at least the U.S. minimum wage, maintains at least minimum safety standards in its factories, and pays import taxes equal to the amount that the domestic competitors would have to pay in U.S. income taxes. 

     

     

    U.S. companies and workers are among the best in the world, when they are given a level playing field.  But the field has been rigged against them for decades, and that must change if we want for our industries to regain their leadership positions in the world markets.  If our industries prosper, our population prospers, and our country as a whole prospers.  If our government rigs the trade policies against our workers, our industries will fail, our economy will fail, and our country as a whole will falter.

     

     

    We need to remember that a U.S. worker pays income taxes, social security taxes,  sales taxes, property taxes, "vice" taxes on their beer and cigarettes, taxes on their car tag, fuel taxes, etc., all of which combined total about 40% of his or her income.  Most of the 60% of their income that they can spend is used for rent, food, etc.; their own communities benefit when they spend the money they have earned; every U.S. worker's income is spent in ways that help to keep our own economy strong. 

     

     

    On the other hand, when we buy foreign products, the foreign workers contribute nothing to our government and economy. They don't pay any U.S. taxes; most of them don't even buy any American made products. In fact, many of our trade partners have so many regulations in place that it is practically impossible for our own companies to compete in their markets. The foreign manufacturers who sell us their goods don't have to worry about paying U.S. taxes or maintaining a safe work environment.  They don't have to abide by the rules that our own manufacturers do.  If we want to keep our own economy strong, we don't need to stop foreign trade, we just need to insure that it is fair, that foreign companies which trade with us can't send us poisoned toys made by 15 year olds who are working 15 hours for $2, based in countries which don't allow us to sell them our products, pay no taxes and don't have to abide by U.S. safety standards.

     

     

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