Tag Archives: free trade

Following the US into Decline

[The new Australian government, elected in September, has refused to do anything to help to retain car manufacturing in Australia, and all three manufacturers (GM, Ford and Toyota) have now announced they will close within the next 2-3 years.]

trickle-downIt’s amazing the Abbott government can run such a market-fundamentalist industry strategy, to general acquiescence, in the face of so much obvious evidence of the profound damage the same strategy has done to the USA.

The free-trade doctrine has seen US industry hollowed out, and industrial jobs exported en masse, as US corporations moved their plants to countries with cheap labour and few environmental constraints.  The US used to have consistent trade surpluses, but since 1976 it has run enormous trade deficits that free-market policies have done nothing to reduce.  The trade deficit leaves the US indebted to the world, and increasingly dependent on China, which holds the most US debt.

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How Was Krugman So Wrong On Trade?

[good piece from one of my favourite sources, Campaign For America’s Future (formerly TomPaine.com).  Read the Greider piece too, it’s not very long.]

by Dave Johnson

Have our trade policies helped or hurt the country? You can look down at equations and models, or you can look up and see what is happening around you. Equations and models will tell you that “free trade” is a good thing. But if you look up and see what is happening around you … “not so much” is such an understatement. So a comparison of what economists predicted “free trade” would bring with what has actually happened might help us find a way out of the economic mess we are in.

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