Reading the clinical description of the dismemberment of America’s middle class (“Incredible shrinking American wages”) was absolutely maddening.
It is difficult to believe that the politicians who pushed these “free trade” policies — from Reagan through Obama — could not forecast the results.
For 200 years, we maintained import tariffs (taxes) to protect domestic industry. For example: Let’s say an American company markets a widget for $100 after costs, and a foreign competitor using lowwage labor can market it for $40. The tariff on the foreign widget would then be 60 percent, bringing the price up to $100.
The foreign widget was allowed into our market, to compete with domestic brands based upon consumer choice, but the price was made equal in order to prevent the foreign competitor from driving American companies out of business (and to maintain American wages). We did this in the name of “patriotism” and “sound economic policy.” Every other country on Earth does this today, except America.
An analogy: We are playing an NFL football game. Every other player is helmeted and padded accordingly; we, however, are wearing tennis shorts and a T-shirt. Do we find it odd that we’re getting our brains beaten out?