Reposted from the Economy In Crisis blog
Kenneth Davis | January 15, 2013 | Economy In Crisis
During the past year a virtual chorus of complaints about our devastated domestic industries has been raised by proactive economic advisory firms and “think tanks.” How could we let a massive flow of foreign imports take control of our self-sustaining domestic market for goods and services? What’s wrong with our leaders in business and government who allow the U.S. to become the world’s biggest debtor nation with tens of millions of unemployed while we’re well on our way to insolvency?
Well, as the old saying goes, “Before you blame others, take a good look at yourself first!” Most of all, are we in the diverse advocacy community speaking with a unified voice in telling business and government what America needs to be doing differently? The answer is a definite “No!” Some are still firm believers in one-sided, wide-open U.S. “free trade” policies that became popular in the 1970’s at the dawning of the new globalization era.
Strangely a majority of our leading economists are among the firmest supporters of “free trade.” Most of them are Keynesians who subscribe to the belief that our main problem is insufficient consumer demand that can be fixed by more government stimulus. Yet our big budget deficits put that solution out of reach politically and practically. We’ve got to produce more to earn our way in the world again. We mustn’t feel we can borrow our way out of trouble despite what fine economists like Nobel Winner Paul Krugman may say.
So if action-seekers can agree that our huge trade deficits are our biggest problem for the economy and jobs, will the financial oligarchy of Wall Street, our biggest banks, and U.S. multinational companies join us in restoring our former national policy of total balanced trade with the rest of the world? That practice served the U.S. well for many years before globalization. To implement it again now, we’d need strong legislation to cut the annual flow of imports here by as much as 25%, while replacing those imports with increased domestic production. Unfortunately, there’s been no attempt to even explore that very viable solution with top leaders in business and government. They like things the way they are now, with a strong stock market fed by U.S. business earnings abroad while they disclaim any responsibility for our domestic industry’s ongoing destruction by excessive import competition. What ever happened to patriotism among our leaders?
So, my fellow activists, let’s stop complaining about the failure of others. Let’s adopt our own strong recovery plan for America and convince the “globalist” opposition there’s still time to save our country. Currently the old adage of “divide and conquer” is in control. China is enjoying our divided, self-defeating behavior greatly. We’re becoming a sitting duck for their eventual takeover, yet we haven’t even discussed it much in our daily lives or during the recent presidential election and the ongoing “fiscal cliff” debates. Where does President Obama stand on our wasted $600 billion in annual trade deficits? Solving that problem would yield $6 trillion in additional income for the crucial next ten-years and add 4% to our annual GDP. It’s high time for all of us who are concerned about America’s future to join in demanding bold leadership now! What is President Obama waiting for?