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.

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U.S. Solar Panel Manufacturers Declare War On Chinese Imports For (Justified) Protective Tariffs

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Solar Panels

The American-Chinese Trade War Heats Up

After years of American solar panel producers giving the cold shoulder to sizzling Chinese competition sequestering colossal sales with unscrupulous warlike tactics.  Now at the brink of extinction seven American solar panel producers banded together to defend American manufacturing.

How Will the Americans Save Their Industry?

Seven Solar companies, led by SolarWorld Industries America, have filed a broad trade case before Commerce Department to institute tariffs that would double the price of imported Chinese solar panels.  This protectionist tax wall would inflate the price of Chinese imports.  Demand for Chinese solar panels would elastically erode with the price increase.  The supply of Chinese solar panels in the American market would also deteriorate.  Meanwhile, American panels would be substituted into the fair playing field.

Critics question the damage this move could do to the blossoming solar market.  This will doubtlessly raise the price of solar panels and reduce quantity.  However, everyone agrees it will funnel money to American industry and build American jobs to compete with the Chinese.

Chinese solar panel manufactures have already captured over fifty percent of the international market and eclipsed the United States’ production.  Only a scant six percent of sales remain in American hands.  However, with recent blows to domestic companies such as the bankruptcy of Solyndra, it appears the Chinese seek to monopolize the market.

This cannot stand.  America is in a trade war with China; mobilizing in support of the American companies is the first step in retaking our own economy

How are the Chinese Acting Illegally?

Nationally, the Chinese government is stacking the deck.  Chinese companies are able to outbid American manufactures at extraordinary rates that far outpace Chinese technical development.  Their government sabotages laissez-faire and gives the Chinese produces a disproportional advantage with no interest loans and free land.  This is a definitive trade violation.  America reaps bittersweet sorrow with the Chinese criminality. Early solar energy adapters are excited by the prospects of cheaper solar panels in the short-term.  Meanwhile, their neighbors lose their domestic alternative energy jobs and cannot afford anything more than unemployment will allow.

Each company itself is also rife with corrupt affairs.  Accusations of corporate fraud against Chinese companies rival the gross output of #OccupyWallStreet.  Chinese panel output is hampered intermittently by furious strikes that threaten Chinese manufacturing and international sustainable energy.

Bernie Madoff would be proud; not since his bankrupting of charities has such wholesale criminality at the expense of the American public.  The Chinese parallel this infamous criminal on a transcontinental scale.  First, trust is built on the quicksand of an inflated currency and illegal tactics.  Second, in the darkest days of the recession the criminal is unmasked.  An empty husk of charitable hopes and broken panels of the alternative energy dream are all that remain.

How Must America Retaliate?

America is in a trade war with the Chinese.  Action must be taken.  Currently, Both sides symbiotically cooperate for shared prosperity.  However, nibbles of this analogy are being eaten by the Chinese as they consume the American economy for their own benefit.  Already, China has simply cut off trade of rare-earth metals to the United States.  In Libya, they opposed NATO by attempting to arm the Pro-Gaddafi forces with over two hundred million dollars in weapons.

Whether the politicians like it or not America is at war with the Chinese.  Protect our own industries is the only way to insure the continuation of the American dream.  The only alternative is to watch the lights across the United States go dark, one by one, as we are blotted out by the Sino smog.

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