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as a choice between isolationism and their view of free-trade.
That simply isn't the case at all.
Fair negotiation is the answer, whereby the US makes trade agreements on a individual basis and takes into account the individual circumstances regarding the goods in question, the currency practices of the nation in question, the environmental standards, and the labor conditions.
For example, Sen. DeWine wants to add Haiti to the Caribbean trade agreement so that textiles produced there will be able to be brought to the US without tariffs.
Well that would be nice if some Haitians pooled their resources and opened up a plant, bought raw materials on the open market, employed people at a fair market wage, and produced goods of value. Cool! Free-trade works, you'd say.
But that won't be what happens. A multi-national corporation, formerly based in the US, but now operating from a post office box in Belize, will view the slave wages and the lack of regulation in Haiti as a great opportunity to go from 6 billion dollars in profit to 6.2 billion dollars in profit, increase the value of their stock and make millions for their CEO's portfolio.
Since workers in their Malaysian plants are getting a little uppity demanding fair compensation and safe working environments with reasonable hours, they'll close their operations there, and relocate to Haiti. Using their extensive capital, they will force any local entrepreneurs out of the market.
They'll produce a pair of shoes, let's say, with their total cost of production around $1.00 per pair. In Malaysia, it was costing them $1.15. When they left South Carolina, decades before, it was costing them $2.00 per pair.
Wal-Mart will buy the shoes for $2.50 each and sell them for $5.98 to US consumers. Since the US consumer is coping with stagnant wages, a much higher tax burden, and the high cost of prescription drugs, they'll buy the Wal-Mart shoes for $5.98 because the independent shoe store is asking $7.99 for the exact same pair.
Of course, the independent shoe store paid $6.00 for the same pair because they bought them from a wholesaler who wasn't buying as many pairs as Wal-Mart and had to pay $3.50 for each pair. The wholesaler was lucky to get that price, since most of his customers have closed up their shops because they couldn't compete with the superstores. Soon, he'll retire though, and collect his social security. He just has to hang on a few more years.
And the economic misery of the free-trade cycle is almost complete.
Just factor in the $6.50 per hour the Wal-Mart cashier is now paid after the independent store she was working at closed. It wasn't that much better, but they hired and trained her when no one else would. It was close to her apartment, so she could walk to work and didn't need a car. They always let her leave when her shift was over, too.
Of course, since Wal-Mart gets to keep the sales tax (part of a deal they made for locating in her town), the county doesn't have money to fund the head-start program her daughter was going to attend (the independent retailer sent the full tax collected to the state and county).
It's okay, though. She's moved back in with her parents now, so they can provide the childcare she needs. So much for the "golden years", but hey, family is family. The rent she pays them, helps a lot since her father's pension was nixed after the bankruptcy of his former company. She even gets to hear her father reminisce about the old days when he made $8.00 an hour at the textile mill. Twenty years ago.
Yeah! Globalization for all!
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