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Originally Posted by magellan
So you'd like America to become an insular protectionist socialistic state? It didn't work for Japan, China and the former Soviet Bloc countries in the mid 1900's, and it's not working for countries like North Korea now. Why would it work for the U.S.?
While I don't disagree that the "fair" trade agreements are hardly fair, closing our borders to trade would destroy our economy. It would be the same thing if Michigan decided to close its borders to trade and just rely on Michiganians buying and selling goods and services to each other. Disaster, for everyone. The companies that ARE doing well in Michigan are those that sell their products and services to other state and countries. Even the Detroit 3 are having record sales in other (developing) countries.
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(My apology if this is now off-topic.)
I'm not advocating outright socialism, just trade protectionism and a zero-dollar trade deficit policy. (Warren Buffet proposed using an import credits system where every dollar of exports would generate a dollar of import credits.) The goal should be to level the playing field for American goods and services so that any foreign goods and services that are viable in the U.S. market are viable not for reasons of labor arbitrage or even regulatory, tax, or environmental arbitrage but because they would still be the best values even if they were produced in the U.S.
It's completely illegitimate to compare trade protectionism to Soviet, Chinese, or North Korean communism. Modern day Japan is a much better comparison. Why do you think that the Japanese are doing so poorly? For a different perspective on Japan, check out these essays:
Japan Feigns Recession but has Great Economy for Workers:
SANE Views
Why the Sun is Still Rising
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Can Anyone Compete with China? Lessons from Japan.
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Author says high-tech manufacturing puts Japan at the top of the world economy, above even the United States.
Off the Economic Radar with Eamonn Fingleton | www.japaninc.com
If Michigan closed its border, it would be a problem because of a lack of division of labor and natural resources, however, if the 300+ million person United States wanted to become self-sufficient minus the few natural resources that would have to be imported, I don't see any reason why it would not be feasible. According to free market theory, as I understand it, if the rest of the world suddenly disappeared, 300 million people living under a system of capitalism on the land mass of the United States should be just fine.
I guess I'm a believer in the notion that Americans can work and produce wealth and take care of themselves and that we don't need India, China, and Japan to take care of us. Ultimately, one cannot consume more than one produces. The question is whether we'll squander our pre-existing wealth (assets, real estate, businesses) for ephemeral consumer goods and services or whether Americans will work to produce the goods and services it consumes while keeping the wealth it has already created. (When American trade deficit dollars return to the U.S., they aren't being used to purchase American labor, goods, and services, but rather our assets--our real estate and our businesses--why would they want to buy expensive American labor?)