Is protectionism the only viable strategy for economic recovery?
Or can we find a way to generate goods and services that can be reasonably be sold in the global market.
- John ELv 71 decade agoFavorite Answer
Protectionism is the most damaging thing for the world economically.
It is as simple as sugar. Peasant A can make sugar and harvest it, it will sell in America for $0.50 / lb.
He makes a living as long as the price doesn't drop.
On the other hand, the US government has a paranoia about sugar and insists on having its own industry. This industry costs BILLIONS, results in sugar prices that are $5.00 / lb, workers are 'protected' to the tune of about $250,000 - $1,000,000 PER JOB (yes, look it up, substantiated many places). And the peasant gets emaciated and dies because of protectionism.
The same applies to a TV set. Pay an American to assemble the parts, you will get a 50% reliable set that costs $2500, pay a peasant to do the same, 95% reliable, $1000.
Who benefits? The consumer. Who benefits when protectionism dominates? No one except in the nation with money -- and that sure as hell is not us.
The only viable strategy for economic recovery is a fair tax. In short, you pay no taxes up to about $40K -- as simple as the government sending you a check based on typical purchases made, groceries, gas, electricity, rent, sales taxes. After that, 19%, roughly -- on everything. Yup, a drug dealer buys a rolls. 19%. An illegal buys a slurpee -- 19%, and he doesn't get the check, because he is illegal.
The enormous underground economy would surface and capital would return to the markets. The economy would be on afterburner.
Protectionism. Foolishness. VAT tax. Foolishness. Fair tax. Brilliance. Talk to me, man.
- johninjcLv 61 decade ago
There is another option but it would lead to economic setback. We could continue to become more global, then we would have to compete with all nations of the earth. Meaning we would have to compete against other nations and that would put us at a disadvantage because many other nations do not have minimum wage laws, OSHA, The EPA, or many many regulations that business must deal with in order to operate here.
Kind of hard for US business to make a product and sell it at a cheap enough price when they have union labor, and all of the fore mentioned regulations when the competitor has cheaper labor, and a lot less regulations factoring in to their production costs.
When talking about global politics and economics you have to remember the US is like the very rich on the earth. We are at the top, if we spread the wealth around that means we get the most taken from us to help benefit the poorer countries. The way progressives see the very wealthy in this country is how much of the world sees the US. They should pay their fair share.
Problem is most of our government officials keep calling for more globalism knowing it will be bad for the US. I think it is a treasonous offence since they took an oath of office to uphold the constitution of the United States.
- 1 decade ago
No, protectionism does more harm than good. Ultimately it ends up raising prices. Take the sugar industry for example, once upon a time foreign sugar was worth 3 cents a pound while US sugar was worth 7 dollars a pound because of protectionist policies which drove the shift toward high fructose corn syrup and destroyed the sugar industry.
- Michael DLv 71 decade ago
Your question seems prefaced that protectionism is bad. How about just one (1) example of a good or service that is NOT sold reasonably on the global market...
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- a2x4dcLv 61 decade ago
Protectionism will cause a depression. Today's consumer will not pay the price required for 1st world's salaries. Since 1st world's salaries are no longer paid for most low skill jobs, we most learn skill that others consider meets their needs.
In this age of entitlements the only items the masses are willing to fully pay for are: Comfort/Convenience, Recreation, & Prestige. All other items the masses feel both business & Government must subsidize. Most aren't bright enough to know the government must 1st get it from us!
- erlLv 44 years ago
this is unpatriotic, this is revisionism on steroids. The GOP additionally has a habit of doing the main severe ingredient to get their "sort" stated interior the information, that on my own is pathetic because of the fact it ability the GOP won't be able to get helpful press via doing what's nice for the country as an entire. as a replace, the GOP is going out of this is thank you to garner as lots damaging press as a possibility, because of the fact it appeals to their hate-monger white-wing base who thoroughly take exhilaration in enjoying the "sufferer" card as much as a possibility even in spite of the undeniable fact that it stretches credulity to this is maximum absurd extremities. thinking how genuinely illiberal the white-wing is of non-white "others" who're many times characterised as "unworthy" of something usa has to grant subjugated downtrodden hundreds, the underprivileged, and the exploited undervalued human hard artwork ability, working type.
- Anonymous1 decade ago
No, as long as you can find some way to sell U.S. made goods in the USA when the same thing made in China or Mexico costs one third as much.
When you figure out something, let us know. Okay?
- Anonymous1 decade ago
No, If you get rid of the NAZILIBS and their anti American anti business policies and legislation, the economy would take off like a rocket.
- Anonymous1 decade ago
No, that would make it worse, but I would still like to find out why German companies never outsource anything. It seems to be culture. Their companies are German nationalists.
- SageandscholarLv 71 decade ago
You really think the solution to a global recession is widespread economic nationalism?