An (Indomitable) Argument for Protectionism

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Seagate Wuxi China Factory Tour

Protectionism helps us at home and our friends abroad

The expired Multi-Fiber Arrangement left thirty million people across the world unemployed.  These workers were unfortunate victims of globalized free trade.  Free trade leads us to believe that goods should always be produced by the firms competing under pure capitalist conditions.  This idea is not wrong; it is only the dangers of free trade should be mitigated in emerging markets around the globe to give them the opportunity to succeed.  Protectionism, the antagonist of free trade, is the solution to best prepare infant industries and emerging economies anywhere in the world; this policy employees more denizens, produces stronger industries, and cultivates stronger markets than free trade ever could.

Inefficiency creates more jobs.  If the entire world can exploit a market then only those countries with the most efficient industries will be able to sell.  Protectionism erects a wall of tariffs that prevents foreign goods from ever contaminating domestic markets by driving prices up to an inclusive level for domestic products.  Under protectionism, small industries gain a foothold, bloom, and employ more denizens in every country across the world.  There are minor concessions; on a global level less of goods are produced and the cost is driven up slightly as well.  These negligible effects diffused throughout the consumer markets means the world to the now employed workers who can support their families.  Protectionism is more humane than free trade.

Stronger industries are built under the shield of protectionism.  Behind a wall of tariffs the United States built mighty firms of  industry that dominated the world for the second half of the twentieth century.  Preceding the Americans, the British had done the same when the pioneered the Industrial Revolution and built an empire upon which the sun never set.  Since the 1970’s China used numerous protectionist policies, notably keeping its currency artificially low.  It is predicted to have the world’s largest GDP by 2020.  Examples of booming economies that got their start in free trade are scare.  Columbus and Admiral Perry opened up trade to the Americas and East Asia respectively.  In both countries widespread exploitation of natives and complete sterilization of domestic industries ensued following the introduction of cheap free trade imports.  Free trade is a tool of the strong to stay in power and collect wealth; for weaker nations and industries free trade is a poison which cripples.

Stronger markets evolve under protectionism.  Protectionist policies protect infant industries and prevent exploitation of weak economies.  In an international market of free trade monopolies are certain to emerge.  Monopolies are established when there is not industrial competition.  This problem hurts everyone.  Consumers suffer from an inferior product; without the Darwinian survival of the fittest threat the producers have no incentive to innovate.  Marginal producers are harmed.  Any attempts to breach the market are squelched under the monopoly.  The monopoly hurts itself through stagnation.  Protectionism is the best means in a globalized economy to give marginal producers and infant industries the time to create a profitable industries despite the monopolies.  Consumers and marginal producers benefit from better products and pay checks while potential monopolies are broken out of self-defeating cycles of stagnation.  Protectionism helps everyone.

Protectionist protects countries.  It harbors citizens and gives them jobs.  It cultivates infant industries under a cocoon of tariffs.  Better products and firms are brought to market thanks to protectionism.  It seems almost silly to even think about introducing globalized free trade to emerging economies; it corrupts infant industries and kills jobs.  If it were not for multinational corporations, who preach fallacious free trade to all for a better profit margin, protectionism would indisputably hold in its rightful place as protector of firms, consumes, and employees.

Developing Countries Hoodwinked: Ditch (of) Free Trade

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3rd world work force
While free trade is the optimum interdependence policies of developed countries it does not aid developing nations.

Free trade endeavors to help workers in developing countries; the problem is that it cannot succeed in our cut-throat, capitalist world.  When corporations go into developing countries they are not being philanthropic: they want to make money.  In order to succeed in our globalized world, companies purge themselves of humanity and squeeze every last cent out of their production.  This is not necessarily good or bad, it is just how the world of business works.

Growths of industries in developing countries create working class jobs.  This class of jobs is both rudimentary and menial.  Some examples are textiles, agriculture, and manufactured devices.  They do not build human capital or financial gains; they are effectively powerless to better themselves.  Karl Marx mourns them as: “that class of modern wage labourers who, having no means of production of their own, are reduced to selling their labour power in order to live.”

These laborers in developing countries, who have opened themselves to free trade, are arrested by wage slavery.  Their occupations pay them just enough to live, but not a cent more.  Free trade, cut-throat capitalism, and nations full of alternative workers guarantee that payrolls will be capped at the living wage.  Budding domestic industries, termed infant industries, are unable to thrive because full-fledged foreign competition steamroll over them.  Once infected by free trade developing countries are in an unfavorable position to ever become developed.

Ayn Rand, the most important philosopher on capitalism, believes that free trade is along the optimal path for economics.  However, she also knows that under free trade, “the good of some men takes precedence over the good of others, with those others consigned to the status of sacrificial animals.”  Developed countries are benefited, while developing countries are left by the wayside.

In conclusion, free trade is not the solution for developing nations because it polarizes their populations into numbed working classes, trapped in loops wage slavery and human capital erosion until a new force, perhaps protectionism, stems the drudgery.  If not, developing nations are, “consigned to the status of sacrificial animals.”

What is “Occupy Wall Street?” : The American Variant of the Arab Spring & The Origin of the Second American Revolution

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Occupy Wall Street Protesters Arrested For Campaigning For Basic Human Rights

It should be noted that the Arab Spring flared in America on September 24, 2011 and has since burned brightly, lighting downtown New York City while singeing Chicago, Denver, and Los Angles.  This global revolution has taken the form Occupy Wall Street here in America.  They campaign for ethical reforms for majority of the population, which are needed to combat the unconstitutional and immoral actions of the richest 1% of the population.   In the words of Michael Moore, “Something has Started.” This is the beginning of the Second American Revolution.

What are the Occupy Wall Street Protestors Moving to Accomplish?

They want to enact economic and judicial reforms on a national scale.

They are campaigning against a broad range of failings that have hurt the American public.  Several important issues are combating corporate greed, unshackling union’s collective bargaining rights in Wisconsin, and overturning Citizens United v. Federal Election Commission, a Supreme Court Decision that gave corporations the right to invest unlimited funds in political campaigns.  Many demonstrators believe the financial sector, embodied by the Wall Street Stock exchange, to be at the heart of these problems.  This is why ground zero for Occupy Wall Street is in New York City; they really just want their voices to be heard in the increasingly polarized and glaringly corporate political battleground.

Will They Be Successful?

Yes.

Their protest is the American manifestation of the Arab Spring, which has uniformly been unstoppable.  The trend with this sociopolitical titan has been that nations either meet the demands of the populace or inevitably fall to rebellion.  These protests will be historically noted as the beginning of either one or the other in America.

The Arab Spring has already been felt around the world, from the revolting Arab nations successfully completing revolutions, British looting of London, and Greek riots spreading anarchy.  Everywhere people are revolting against the same issues, only the names and places are different.  It is likely historians will it call the Jasmine Revolution, after its original name with the fiery startup in Tunisia.

These initial protests may not be successful, perhaps doing little more than slowing a few investors commute.  What is significant is that Americans are mobilizing not against any specific issue, but instead against the decaying economic order.  They are protesting the schism between the astounding wealthy and the numerous poor.  This is similar to other “Jasmine Revolutions.”

How Does Occupy Wall Street Resemble the Arab Spring?

Occupy Wall Street, which can be identified as a public organization for economic reform, bears striking similarities to the origins of most Arab Spring revolutions.

The Tunisians, the first pioneer of the Arab Spring, say their revolution was sparked by “unbalanced economic growth” as well.  Egyptians revolted due to, “rising food prices, high unemployment, and the corruption that pervades economic life in the region.”  Yemen is on the verge of a regime change, because of a widely corrupt government and major “economic grievances.”  With the exception of the corruption, all of these concerns are prevalent in every region of the United States.  The maldistribuiton of wealth and resources in America parallels those of the revolting Arab States; it was only a matter of time before distraught and jobless citizens took action.

Why Has There Been Police Brutality?

I would like to make note that while there have been a few occasions, including one incident involving dangerous use of pepper spray and others where police aggressively arrested unruly protesters, on the whole Occupy Wall Street has not suffered from unexpected amounts of police brutality.  This is a large-scale, well covered protest; incidents of this nature happen during such demonstrations.   It could be much worse and much more violent.  These cases of controversial police aggression are regrettable results from the patriotic activism of the protesters going beyond conventional terms of engagement.  These protesters knew the risks when they decided to stand up for what they believed in.  The policemen are simply doing their jobs; I would not judge them too critically lest they desert our popular cause entirely.  Everybody knows they did wrong, all we can hope is that incidents do not persist.

Chinese Five Year Plan of Armament (And An American Plan of Complete Disarmament)

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Beijing has announced increased defense spending by 12.7%, from 532.1 billion Yuan to 601.1 billion Yuan.  This expenditure is valued at roughly $91.5 billion dollars, or roughly 7.2% of their declared national spending in 2011, in the near future many more billions of dollars will be allocated into defense spending.   Most analysts agree that, in addition to the declared spending there are billions of undeclared Yuan being secretly spent by the Chinese government.

Chinese military truck during China's 60th anniversary parade

Chinese military spending is now only outpaced by the runaway American defense budget.  Each year larger and larger Chinese contracts are being given; American defense contractors are beginning to look for sales overseas rather than here at home.  That is something that needs to be prevented to protect the vulnerable American economy.

Why is this Globalization Happening?

As China militarizes the concentrations of weapons and weapon distributors will be exported to Asia.  China has already consumed many industries; most manufacturing products come from China.  This is a result of globalization, a s costs rose for American corporations business leaders were forced to look for economical alternatives.  They discovered that assembly line jobs could be sent anywhere in the world, where they would fulfill the same quotes at a fraction of the price.  Production jobs went overseas.

Now defense contractors appear to be the next to make the push west.  Currently the United States is the world’s leading producer and distributor of weapons.  Without the staples of guns and ammunition the domestic American economy would disintegrate in a matter of days.  It is in the best interests of the America people to deal with this problem before another critical market goes over seas.

How will Defense Spending Affect the United States?

The America economy will indirectly affect the average American in countless minor ways, hindering the average man’s lifestyle.  First, everyone will see a steady rise in the cost of all items.  As the economy of the United States steadily weakens the dollar does as well, causing higher levels of encumbering inflation.  This results in all products costing more, since money is worth less.  Second, America will be slowly pushed out as the leading international nation in foreign affairs.  Without the comparative muscle, many nations will abandon the United States’ protective military umbrella, favoring the Chinese sphere of influence.

America will no longer be the dominant global superpower.  These long term changes will inevitably happen if the economic conditions continue along expected courses.  Pax American is dwindling and will die unless decisive, innovative government action is taken.

Women vs. Walmart: The Largest Class Action Lawsuit Ever

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Wal-mart vs. Dukes, a class action lawsuit 11 years in the making, is finally going to be resolved.  It began when a fifty four year old department store worker Betty Dukes, who had glowing performance reviews during her six years of work, was repeatedly denied training that would allow her to advance to a better paying position.  She made further accusations that Wal-mart pays women less and promotes men faster, regardless of talent. She filed a lawsuit against Wal-mart; since then it has snowballed into the largest case in history, representing 1.6 million women from across North America.

How has Dukes vs. Wal-Mart Evolved?

The combined force of several offices of lawyers Wal-Mart has constructed a near impenetrable defense for its alleged sexist employment policies that discriminate against women.  The best and brightest worker’s advocates have aligned with Dukes, determined to give every worker equal opportunity in the workplace.  On March 29, 2011, an oral debate will take place before the Supreme Court; a verdict will be reached and this conflict will be resolved.  Regardless of how the proceedings go the macroeconomics of America will be altered.

What Will Happen if Dukes Wins?

If the Supreme Court rules in favor of Dukes it will led to several more years of legal conflict in order to resolve an agreeable resolution.  Inevitably, there will be more sweeping class action that will make it possible for all minorities to have an equal opportunity in all jobs.  This would result in more progressivism in the workplace, liberating and empowering the working class.

What Will Happen If Wal-Mart Wins?

If Wal-Mart wins then the influence of class action lawsuits will suffer dramatically in scope and variety.  It will prevent other minorities in the workplace using lawsuits to settle disputes with the corporations.  This possible collapse of workers’ rights would push America deeper into its Second Gilded Age.

Should Dukes vs. Wal-mart Even Need to be Debated?

The economy will be subtly relined due to this landmark decision; however it has yet to be seen if it will become better or worse, however this never should have needed to have gone to the Supreme Court in the first place.  Discrimination of any variety is to be despised; upon Dukes being able to prove she was discriminated against she should have been reimbursed, given the training, and received her rightful promotion.

It was decided earlier in the proceedings that she was discriminated against; however, Wal-mart is denying that it discriminates against women on a large scale.  Dukes has information to the contrary.  This sexism is dumbfounding in modern America, hopefully it will not last much longer.  Recently the Supreme Court has been favoring the people over the corporations, perhaps they will continue to do so.

Toyota Totaled by Tsunami: American Plants Warned Of Possible Shutdown (Other Car Companies Eying American Markets)

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Factories from California to Michigan have been ordered to prepare for shutdown.  As vital car parts that originate in Japan shrink in numbers new ones have yet to arrive from Japan. The Japanese tsunami killed thousands of civilians, triggered partial meltdowns at several nuclear reactors, and ravaged miles of Japan. [Please Help the Japanese People Recover, Donate Here Anytime]   Factories have been crippled in the island nation and the ports have been frozen except for food and medical supplies.  Car parts do not meet these strict requisites.  New parts will not be shipping soon, which has led to a stagnation of the assembly lines.

This has led to many factories having reduced production, however until the now 25,000 workers that work at the 13 plants have not been laid off, although they may be in the near future.  Furthermore, Toyota has promised to continue paying them regardless of the status of the plants and intends to employ them in community related activities, such as grass-roots marketing and social service.

Despite their token humanitarian efforts Toyota will be drastically set back by this tsunami.  While Toyota has recently dominated the upper tiers of the car market this shut down could easily allow other car companies, such as Ford or Volkswagen, to take control of swathes of American consumers.  The types of cars that everyone is driving will be slightly altered because of this tsunami, there will be many fewer Toyota’s and many more of everything else.

This directly relates to macroeconomics; the consumer price index of will be altered from consuming more Asian cars to more American and European cars.  This may not seem like a large difference, but it will translate into millions, if not billions, of American dollars ending up in different hands.  The contents of the average America’s financial basket will could change up to several hundred dollars.  Some of those funds will be used to help rebuild the decaying American car companies.  This may add thousands of jobs here in America, more if the European or Korean car companies set up new factories to replace the closed Toyota manufactures.

This illustrates just how interconnected the whole world is.  An earthquake in Japan triggers a long and painful domino effect that has recently resulted in 25,000 American workers receiving vacation with pay, while maintaining the possibility that they might lose their jobs.  Economically this is terrible in the short-term, but healthy for the American economy in the long-term.  It harms the American economy to allow foreign companies to invade our shores and steal the profits, millions of irretrievable dollars are being sent overseas.

This dangerous trend is one of the key reasons why Americans have to work harder today to maintain the same standard of living than they did forty years ago.  Back then they were chiefly working for American profits, which trickled back down into the community.  Today that money continues to trickle down, in China, Japan, and India.  This tsunami may have brought a small portion of America’s jobs back to America.

Apple Apps Become Subscription Based: Creation of 2 Expensive Faults (and 1 Anti-Apple Development)

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What Has Apple (Foolishly) Done?

They want to treat electronic newspapers like old fashions newspapers; that is the entirety of their terrible, terrible blunder.  They have enacted a subscription service that will allow current and future app developers to have users pay for their apps at intervals of weeks, months, or years.  Apple’s concept for this idea is that developers will sell one app, that is very expensive and high quality, rather than feeding consumers current events one article at time or games at one level at a time.  Ideally, this would create a larger profit for the companies.  The subscribers will unwittingly pay much more money for apps they simply do not want, the developers make more money for selling you things that you do not want, and Apple might just finally make the app store profitable instead of a money pit.

How Will This Negatively Effect You?

You will end up paying more of your hard-earned cash for information or games that you will not use.  Right now developers are plagued by consumers not buying new editions of old apps.  What they have either failed to realize or failed to convey to Apple is that when a consumer, such as yourself, does not come back to buy the new edition of an app that consumer does not want it.  Millions of innocents will have dozens of dollars added to their monthly budgets because they simply will not know or forget that they are paying much more for things that they already had for half the price.  They want to be able to keep being charged nothing for nothing, rather than be charged ludicrous amounts of money for NOTHING.

How Will this Negatively Effect The Developers?

It will corrupt, strangle, and may eventually eliminate the Developers who have constructed the app store.  Right after Apple announced their new subscription system they were collectively outraged and beginning to more to app selling sites.  They are particularly outraged that all future transactions will have to go through Apple; the developers will no longer be able to link outside the store and have consumers buy there at cheaper rates. This is designed to increase Apple’s revenue by 30%, by decreasing the third-party developers by 30%.  The app developer industry will be crippled beyond repair if they remain with Apple.  In response, many have announced they simply will not continue with Apple’s dreams of absolute monopoly.

How will this Positively Effect Everybody?

Erosion of the Apple monopoly on the app market and an influx of new, innovative app providers.  Rumors of this apocalyptic move by Apple have haunted the industry for months.  Rather than waiting for their inevitable doom many developers succeeded.  More and more third party app providers have been cropping up over the last year. Some of them want to create innovative apps that will forge new paths and identifies for Americans.  Others wanted to be able to post “sexual content” that Apple banded with a week’s notice.  Apple will be hurt more by this move than anyone else as the app store is left abandoned.

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