This notion of “global economy” as a new phenomenon is hogwash. Humanity has always traded over as far a distance as possible; and for some time now, that distance has encompassed the globe. In boats made of bulrushes, via caravans over ice floes and by who-knows-what we haven’t heard of yet, people have traded globally for thousands of years.
The East India Companies, who started wars, founded colonies and worked slaves from all over the world, were at least the equivalent of any military-industrial titan or “Big Oil” company we fear today.
Global economy is nothing new at all. It has been going on for a really long time like this:
Products are mobile. Capital is mobile. People are, mostly, less mobile. And while markets stay put, they do change a lot. So, business searches for cheap labor, cheap resources, and cheap ways to put the two together, and it doesn’t matter where the market for the product ends up…the world is the production floor, and the world is the potential market.
So when our politicians impose labor regulations, or allow labor abuses that don’t exist anywhere else on earth, yet don’t impose any restrictions upon goods made without such nonsense, our politicians are essentially saying to our businesses, “find illegal labor, close down or move overseas.”
When our lawyers and courts wage lawsuits against businesses that’d never happen anywhere else, yet don’t impose any restrictions upon goods made without such lawsuits, these politicians are essentially saying to our factories, “find illegal labor, close down or move overseas.”
When our politicians regulate USA factory emissions, but place no sanctions on foreign goods produced without any such regulation, our politicians are essentially saying to our factories, “close down or move overseas.”
I could go on about taxes, unemployment compensation insurance, OSHA, FTC, subsidized health insurance, etc., etc., et cetera…but the bottom line is easy to see. Our businesses listened to our politicians and did what they were told to do. China makes our stuff now. No other nation on earth has such a problem of trade imbalance with China. It’s just us. And what little is done here relies on “illegal” labor (the Constitution is Law, and unconstitutional laws are illegal), back-door exceptions and, of course, that raison d’être of politics, special deals for special people.
This is a huge problem that, combined with a deflating fiat dollar would, as I’d publicly declared back in 1999, smack us upside the head by 2010.
I now think we’ll not make it to 2010. Collapse has begun and it may become irreversible soon.
Remember, failure is an option when it comes to nations. It’s not just that politicians can screw up; it is a certainty that, as is historically proven, they will screw up and we will all suffer.
I believe that the demographic problem of 78 million baby boomers going off tax rolls and onto our Ponzi Scheme doles (Social Security, Medicare, etc.), combined with a dollar that’s worth 4 cents, central banks that want to print more monopoly money, combined with a nation that doesn’t build stuff anymore (and we’re losing innovation and engineering very fast as well) is building a perfect storm with political and corporate corruption such as the world has never seen.
The once Greatest Nation on Earth is on the precipice and the edge is crumbling away.
We could still turn back. But how?
A politician would tell you that more taxation, litigation and regulation will fix the problems caused by their taxation, litigation and regulation.
But I insist that the only solution is to put our politicians on a leash.
It just so happens that all of the taxation, litigation and regulation that have brought us to this brink…are illegal. The authority to screw us up so badly was never constitutionally granted to any level of state power (local, state or federal). There is no constitution that allows any of this.
So, if we’d return to constitutional Rule of Law, return to constitutional money, rights and governed government, all of our impediments to success in a global market would disappear, and we’d be able to recover from a nasty spill, instead of collapsing to our death.
Happily, this is what the candidacy of Dr. Ron Paul is all about.
He is the only candidate who has any intention of instituting Rule of Law here. He is the first in a hundred years.
Better late than never, eh?