Solution to the US/Canadian Trade Deficit (protect American workers now!)

Oregone

(1000+ posts) Send PM | Profile | Ignore

Fri Feb-06-09 06:39 PM
Original message

Solution to the US/Canadian Trade Deficit (protect American workers now!)

Edited on Fri Feb-06-09 06:42 PM by Oregone

It is entirely clear, especially by listening to Barack Obama�s recent comments, that the United States is in the middle of a complete economic catastrophe. And undoubtedly, while in a catastrophe, the United States has run out of options for accommodating the �Cheap Labor Cons� who continue to push the manufacturing sector of America to the brink of disaster.

Our race to the bottom has created an immense trade deficit, while it has decimated the American working class. And in return, what have we gotten for our �free trade� and globalization? Dangerous and unsafe toys, food, and tools flooding our markets, and putting the American worker out of jobs. While these exporting nations are full of their own workers simply seeking employment, they are �crapping on our standard of living� as a notable economist put it.

But it is time to stop this mess and protect American Jobs. Now, the �Buy American� clause, while it doesn�t actually create any long term jobs, and while it has been watered down to the point of uselessness (http://www.timesonline.co.uk/tol/news/world/europe/article5655115.ece), is the first step in the �protectionism� needed. With enough equivalent, water-downed procurement clauses, the working man shopping at Wal-Mart needn�t worry about NAFTA or the WTO; all he needs to worry about is the stimulus funds funding his paycheck running out and Lou Dobbs losing his CNN show.

But alas, it is one country at a time to deal with, so today I pick the finest example of a �free trade� offender: Canada. Their lead and arsenic tainted petroleum exports and melamine laced lumber products have been decimating the American economy for decades. We can only pray nightly that their attempts to export their Health Care and affinity for the French language fail in vain. Their �success� as a nation has been solely attributed to their role as a leech upon our country, rather than some product of a successful liberal government led by a commie leader like Chretien the Impaler.

Being at a lowly 4th on the UN HDI (http://en.wikipedia.org/wiki/Human_Development_Index#2007.2F2008_report) and skimping by paying their some of their slave shop workers more as a trick (http://business.theglobeandmail.com/servlet/story/RTGAM.20081130.wcanauto1130/BNStory/Business), it becomes very evident why Canada is winning this trade situation and taking advantage of the American worker: they are taking advantage of their own people, who are nothing more than indentured servants to this international trade system. Is this what the �Cheap Labor Cons� call a level playing field? It is, without any doubt, they who are the enemy of the American working man (and woman for those so inclined).

TOTAL $244,512.1 (exports) $315,859.5 (imports) $-71,347.3 (balance) (in millions)

http://www.census.gov/foreign-trade/balance/c1220.html#questions

According to the US Census, Canada drains $71 billion dollars from our economy in 2008, of both private and government, tax-payer funds (which is $6 billion a month, compared to China at $20 billion). That�s $71 billion dollars of wealth that is leaching out of our economy annually, and it is a deficit created by us allowing the �free market� to determine that their products should be sold, without tariff, against competing American products. The conclusion? The American product, built by well-paid, high-standard of labor, environmentally safe practices, always loses; and subsequently, the workers lose their jobs.

THE SOLUTION TO THE $71 BILLION DOLLAR PROBLEM

America can, through a simple stroke, solve this problem by simply �Buying American� on 1 simple type of product: energy. Canada is the number #1 petroleum supplier to America, exporting 2.5 million barrels of oil a day (http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html). And while we send our money out to this international oil, which we know only funds terrorism (much like BC Bud does), we are allowing Canada to take advantage of our workers and run up a large trade deficit against us.

http://www.statcan.gc.ca/daily-quotidien/080814/dq080814a-eng.htm

Energy exports nearly doubled from $49 billion in 2002 to $92 billion in 2007 and in the first five months of 2008 are running at an annual rate of $125 billion.

Crude oil dominates Canada's exports of energy products, contributing almost half so far this year.

Canada is exporting $125 CAN billion dollars in energy, 90% of which is going to the United States ($90 billion US). Although it is comprised of natural gas and electricity too, the overwhelming majority of their exports are petroleum based. In 2004 alone, petroleum accounted for over $50 billion dollars of exports to the United States, which has grown drastically since.

So in one fell swoop, a �Buy American�, or �Don�t Buy Canadian�, provision on energy or petroleum would single-handily wipe out the trade deficit between Canada and the US (and even reverse it to a surplus of $20 billion). In a single motion, the United States can ensure they are exporting more finished goods to Canada than they are buying, despite any trade agreements (and who cares if we break any in doing so, as this is a catastrophe). This will protect and put the American workers and instantly put them back to work.

For too long, we�ve laughed with the Canadians, thinking they are cute and make good comedians. For too long, we let them into our household to eat at our tables. Now is the time. We are the people we have been waiting for. And Canada is the enemy that has been hiding in the shadows, killing our jobs and way of life. No longer can we tolerate this $71 billion dollar drain, and now is the time to drain them and protect OUR American workers.

With the proper investments in green energy, by 2020 we may be able to compensate for the $90+ billion dollars in energy we will stop importing (and any increase demand due to growth). In the meantime, hell, there is always offshore drilling and ANWR. But that�s the price to pay to ensure the American worker is protected, and to ensure we can rape their markets as they have raped ours for years.

* This may also just be a step in the proper direction, depending on the price of oil. If oil drops too much, we can also ban lumber imports and trim some of the dying ANWR trees while we are at it.