Unfortunately, Socialists and Liberals have a totally inverted view of trade, international and regional. As far back as we look into human history, countries, tribes and communities, rich or poor have always relied on trade for prosperity. The most basic idea behind trade is that of give and take, while mutually benefitting each other. Manufacturers, producers, growers, transporters, communicators and traders get a broader and deeper market. Retailers offer more variety and buyers get more choices and better prices. Throughout the course of history we find humans benefiting with this idea, in every culture and in every geographical region of the world. It has always been a very powerful job creator, too.
Many Socialist and Communist economies, in last century, got this idea totally upside down. They created extremely protected and isolated domestic markets. These countries included China, Soviet Union, India, North Korea, Cuba and Eastern European countries. The first and immediate, and intended, of course, effect was that these policies seriously limited the competition. With very limited competition, there was no incentive left for creativity, innovations, quality and price optimization. Consumers had to buy whatever was available, at whatever price offered and whatever the quality might have been. The products and services produced in those countries during that era were drastically lower in quality, creativity and innovation when compared with free market Capitalist countries.
Some are still not realizing but many Socialist countries including China, India and Russia finally got the point. They opened up there markets and privatized many of those. The results are astonishing, as we all can see. Although, as a result of opening up their markets, lots of foreign products and services were flooding in, every single one of those started generating far more revenue than before. The quality, and creativity and innovation level on their products and services improved significantly.
Once they tasted the fruits of free market capitalism, all of these countries went on a rampage to sign every possible trade deal with other country or groups of countries while we were waging one war after the other. So China, Russia and India were signing trade deals and making friends, and we were waging wars and creating enemies. The results, as we all know are disastrous. Budget deficits and debt, at home, is continuously rising while China, India and Russia are accumulating piles of cash. It is extremely unfortunate that two biggest allies U.S. and Israel are getting perpetually isolated from rest of the world.
Reflecting their inherent Socialist and communist mentality, liberals are taking this whole situation, upside down. They are blaming the current economic downturn in U.S. on trade agreements like NAFTA and international organizations like WTO while the fact is that these agreements and our trade with foreign countries kept us going to whatever the level it is going. Just take the example of China. Although, we have net trade deficit with China, but, can you imagine how many U.S. multinational companies will literally shut down and how many jobs will be lost if we start exporting to China, say, today. It is hard to even imagine the consequences.
In the similar way, our government is getting it wrong, again. There is no doubt that China’s economic, financial and military power is growing by leaps and bounds. But the any TPP agreement will not be very effective without China’s involvement. Many potential member countries including U.S. has extensive trade relations with China. It will be very hard to implement many of the TPP rules without China’s involvement. Adding China to the agreement can also help build level plain field between China and other member countries including United States.
Still, there are many roadblocks on the way to signing of agreements, trans-pacific or trans-Atlantic. Beside liberal and protectionist activism, the biggest hurdles are government regulations. Especially in the case Trans-pacific Partnership, U.S. is insisting on potential member countries to adopt business and jobs killing U.S. like government regulations, apparently not being welcomed by others. It is unbelievable that the other countries are teaching us free market principles, now. Environmental, labor, banking, finance, business and corporate regulations have only caused recessions, so far. On the other hand, they have failed to secure any intended objectives.
One of the major arguments liberals are making against proposed trade deals is that they are going to ship high paying jobs overseas. Now, this is the problem with their argument. I will again explain it with the example of U.S.-China trade, since this seems to be the biggest issue, right now, beside, of course the future agreements. Jobs created by U.S. exports to china are significantly more than the jobs lost to China. So, the net balance here, at home, is still in the favor of job creation while millions of Chinese got raised from poverty to a decent lifestyle. Do you wonder, why liberal bleeding hearts can’t get this highly humanistic point? This is due to the influence of their bosses in, so called, green lobbies.
One of their points may have some weight, though. It is about secrecy. Question is why their dear Mr. Transparency is failing, again, in keeping the process transparent? First of all, it is proven time and again, in Wikileaks, Manning, NSA spying, VA, IRS targeting conservatives, Benghazi and many other cases that like many of his other promises, Obama’s promise for transparency was completely bogus, and was only a talking point in opposition to Bush. Second of all, it is, in fact, a diplomatic requirement in any ongoing negotiations.
So, this is the bottom line. Trade broadens and deepens the markets, ignites competition, creativity and innovation, brings down prices and creates jobs. Blaming NAFTA and WTO for what are actually are the results of government’s business and jobs thwarting regulations, is just scrupulous. We are already getting very much isolated due to unending wars and failed foreign policies while China, India and Russia are making great progress in international trade and commerce. If we need isolation it is in the field of internal affairs of other countries, not trade and commerce. I cannot believe, I am saying this, but, I fully support President Obama in his initiatives on Trans-Pacific and Trans-Atlantic trade partnerships and investment.