The conversation between free trade and
fair trade suffers from a lack of clarity. When discussing these areas one must
distinguish between the theoretical underpinnings of various economic theories
ranging from command economies to open markets. And, we must understand the
practical implications of decisions made within these systems that are
strategic in nature and are designed to support the intentions and further the
interests of leaders in these systems.
For example, we must understand that economics
and politics are “war by other means,” Carl vonKlauswits stated as much. The
fact is we live in a competitive world regardless of what you call your
organizing philosophy. Capitalism requires open competition on a level playing
field by moral men. Socialism clouds these issues and through ambiguous
doublespeak and induces the individual blindness by many to equate Global
markets with free trade. These are not the same.
There is a large misunderstanding about how
capitalism relates to import and export tariffs. Free-market capitalism, from
our nation’s founding has resulted in the most dynamic and productive economy
and world history. By far the United States leads economic development across
the globe. However, the theories and principles of capitalism don’t uniformly
apply to nations across the world.
There are two forms of anti-capitalist
actions. One, proactive actions of communists and socialists across the globe
in opposition to free markets comment. Two, subversive actions and the
ramifications of the maneuvers of corporations and individuals within a
free-market economy that thwarts capitalism. Both are serious, and both are no
different than ethically egregious actions taken in any other area of life. We
all face enemies foreign and domestic, enemies from without and within.
In fact, most of the world’s population lives
under modified socialism rather than free-market capitalism. This means that
state actors including government and agencies, partner with and regulate the
activities of corporations in these countries. And that’s a mild form of
communistic “autocratic capitalism” which is simply an iteration of communism
that allows oligarchs to build businesses that are publicly traded under strict
relationships to the state.
These companies are co-ownership joint
ventures between governments and corporations. Jack Ma Yun with Alibaba in
China, Airbus in France and the Russian energy companies all follow the same
model. They benefit from protection regimes that prohibit competition in their
own country and structure tree deals with foreign countries that subsidize the
production of it’s an services by these companies. They are financed and funded
by the state. If this sounds familiar, the United States has essentially
co-opted the financial sector buy funding banks through massive inflation due
to Digital increases in US currency. Not to mention the GM bailout which Took
over a public company with Government dollars.
What we need to understand is that
capitalism doesn’t raise the standards of behavior between competitors on a
level playing field. Capitalism overtime drives up productivity and efficiency
and innovation for those who practice capitalism well within their own borders.
Then, it’s up to the nation which includes the Departments State, Commerce and
Defense and many other agencies to negotiate a stance that is favorable to the
whole nation vis-à-vis foreign governments, entities, corporations and
extra-state players which seek to benefit from arbitrage in sectors in
industries where the competition of capitalism has weekends some to the benefit
of others.
This is the essential issue in
capitalism, it both promotes monopolies for businesses that maximize benefits
to consumers and increases competition opportunities for smaller start-up
firms. Economists ironically refer to monopolistic competition as two or three
major companies within an industry that dominate the majority of market-share.
However often single or pure monopolies rise up especially within local markets
where a dominant player controls vast swathes of an entire industry. The same
occurs on a national even global scale. Consider Google’s dominance of search,
80% of all search engine inquiries take place on Google. Or even Facebook’s
dominance of social media, over 3 billion people are currently Facebook
users.
But these large companies use a form of crony
capitalism to subvert existing laws and insulate themselves from the
competition demands of smaller companies. This takes place through patent
procurement, mergers and acquisition to buy up smaller companies, lobbying for
laws and regulations that benefit their position, manipulating financial
institutions, and many other public and private actions. All of this is
anti-capitalism and encourages anti-capitalism by other companies in foreign
nations.
The same types of actions are standard
practice for international businesses that are virtually arms of their state
governments. Government leaders profit from boards of directorates and
interlocking trusts that acquire wealth through corporate ownership.
These firms become vicariously controlled by this international cabal. Where
capitalism competes against socialism it is in the strategic interest above the
nation promoting free markets to dissuade individuals in other countries from
utilizing the power of government to prohibit competition from companies in a
capitalist economy. And it is to the detriment of the nation and
companies and individuals in that nation when unjust laws are used against
their own people based on advantages provided to socialist companies.
Thus, to promote capitalism, we must
allow for tariffs. We must recognize that our nation and companies and
individuals within our country are competing against nations Sedona by the same
laws rules and standards that we have. Because these nations and individuals
overtly and covertly attack our system of economic organization and by
extension a very national security, it is and it is in our interest and our
national responsibility to protect and defend individuals and companies within
our national boundaries.
Yes, this means that we should focus on
America first. And in doing so the shining light in the city on the hill can be
a beacon for other nations to raise the standards of their own economic actions
and begin to compete fairly. A negotiation requires good faith from both
parties. With trust, we engender one another to move forward in a positive
direction. That’s the hope for the Trump administration and bilateral trade
deals which use tariffs as legitimate sanctions on poor behavior, to trust but
verify.
