It should really come as no surprise why China has become such an economic power in the last 20 years, while the United States has continued to slip in the World’s economic food chain. We did it for them.
For the last 20+ years the same people who brought us failed banks, foreclosures and government insolvency, has been telling us “free trade” was the only thing we could embrace in a global economy, and there was no way to avoid a Global economy.
Economics is, to say the best, an inexact science. That’s why any two well known and respected economists can be provided the identical information to review and will arrive at conclusions which are the exact opposites on the spectrum. I’m not economist, but what little education I received on the subject always seemed void of the human factor. The hypothesis always assumed people would make the correct decisions, not self – serving decisions.
Economic science did not take into account the X factor of greed amongst the very people responsible for being…not greedy. The politicians and corporate leaders of America, the pillars of society, sold the United States to China in return for massive profits, which they gorged themselves on at the expense of the American people.
Pretty inflammatory accusations if I say so myself, but not without facts to substantiate the claims.
For example, America began, with the U.S. Government’s prodding, to sell scrap metal to China and Japan by the billions of tons for pennies on the dollar of its actual worth. This single action resulted in the loss of tens of thousands of good paying American jobs. How?
The Chinese recycled the scrap they bought for pennies and resold it to America for dollars, tens of millions actually, which destroyed the American recycling business and the American steel making industry. Thousands and thousands of jobs lost.
Then the Chinese and Japanese used the cheap scrap metal to produce autos and trucks, which were much cheaper than American made vehicles because they were made from steel the few remaining American steel manufacturers left, produced. Tens of thousands of additional jobs lost in the auto industry.
Another example of global fair trade implemented by our government, involved tariffs. The American public got whiff of the treachery committed against the steel and auto industry, which began stirring the rumblings of discontent, but when it was revealed the Oriental basin imposed tariffs on American made vehicles of $500 to $1000 a vehicle, a tariff is a tax the country puts on imports for allowing it into the country to be sold, while America imposed “No” tariffs, the pressure cooker just about blew.
Sensing a tensing of issues, the American government set a very high tariff on all finished imported vehicles brought into the United States from the Oriental basin for sale. They leveled the playing field for the American worker and were quite vocal in letting the media know and spread the word.
Here’s the one issue they failed to mention. The tariffs imposed on the Chinese and Japanese vehicles were on Finished Vehicles. The foreign auto industries simply did not install the seats in the vehicles until it cleared American customs, therefore there wasn’t a tariff imposed.
If you ask why China has become an economic power house in the last 20 years, don’t look to China to explain it. Look in your own back yard to American business and Government for the answers, they did it.