Take a moment to view the video I've posted from "Your World" on Fox News. This is the mayor of Lansing, MI, answering questions about the UAW's president implying that people who are against the auto industry bailout are insane. Well, the head of the UAW is an idiot for saying that and I won't waste my time on him. But it was the mayor's comments that got me out of my seat near the end. See if you are as outraged as I am.
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I'm not entirely certain I disagree with the mayor. I also agree purely in theory with you. Confused? Good. My blog entry [ http://anamericanidiot.wordpress.com/2008/11/29/how-much-free-trade-is-free/ ] Was really talking about this same issue. In pure theory, free trade allows the market to determine who lives and who dies in the market. However, we are not just introducing competition in these free trade agreements. We are allowing competitors into our market without adjusting price for VERY different standards of living. Now if you believe the U.S. standard of living is far far too high and that we here in the U.S. should all be living without cars, TV's, or computers, and our homes should be made from mud or other low tech materials, then I see where you are coming from. I think Gore believes this way as long as he is exempt. Granted unions are demanding wages that exceed their labor output BUT what do you think is a fair competitive wage in the auto industry? Would $10/hr be fair? How about $5.75 that's roughly the same as your average high school student. I think they deserve more than $10 but to illustrate my point let's go as low as we can go. Would lowering every single auto worker's pay to minimum wage solve the problem? No. The average Chinese factory worker makes $2.20 an hour [ http://www.payscale.com/research/CN/Country=China/Hourly_Rate ]. Furthermore current trade agreements allow the Koreans to continue import taxes on U.S. products while Korean imports to the U.S. go tax or nearly tax-free. It is not capitalism that has failed it is the tariff system that has been changed to benefit third world producers while exterminating American producers. As I mentioned in my essay on this topic, we need to have equalizing tariffs or demand foreign workers make salaries that are roughly equivalent to U.S. workers. This would mean higher prices and thus no one would desire this. But should something not be done to equalize trade we will slowly spiral into a world where the standard of living reaches a global median. Where those who are able to own a business populate the upper and the remnants of the middle-class while the rest of the world languishes in the realm of the working poor. Then you can truly kiss capitalism goodbye. A poor democracy will vote itself right into a communist dictatorship. We got a taste of just how little people think when they are scared last month. I think union concessions are needed but so is a little protectionism to level the field. You are true to the theory but sometimes there are reasons to stray from a good theory.
Oh, I forgot to complement the new look. Much nicer.
OK, I went back and watched this again and I have to admit I tuned this interview out early the first time I watched it. I see Reed was really responding to the dumbass comment the Mayor made toward the very end. He then says capitalism doesn't work and that the rest of the world is NOT capitalist. OK, I disagree with all of that and think the mayor's leftism is shining through. Capitalism works but competing with countries that have workers willing to live in shacks and work for scraps doesn't.
OK, I went back and watched this again and I have to admit I tuned this interview out early the first time I watched it. I see Reed was really responding to the dumbass comment the Mayor made toward the very end. He then says capitalism doesn't work and that the rest of the world is NOT capitalist. OK, I disagree with all of that and think the mayor's leftism is shining through. Capitalism works but competing with countries that have workers willing to live in shacks and work for scraps doesn't.
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