Either Bring Home the Jobs with a VAT, or Exit the WTO and Add Tariffs
There is a decision to make. Either stay in the World Trade Organization (WTO) and level the playing field by adopting the Value Added Tax (VAT), which all of our competing countries have, or get out of the WTO and implement a system of import Tariffs.
The United States developed into the world’s greatest industrial power with the most prosperous Middle Class by promoting and protecting American industries and American jobs. Joining the World Trade Organization and abandoning our sovereign policy of Import Tariffs has led to massive unemployment, underemployment, and a decreased standard of living. Import Tariffs are the only proven way to cause domestic industrial investment and prevent the siphoning-off of the assets and wealth of the nation. The greatest loss of prosperity and assets occurs in the Middle Class. Restoring the Import Tariff System will rapidly restore the economy of the United States and the prosperity of the Middle Class.
The reason for the implementation of the World Trade Organization and the so-called policy of “Free Trade” is to allow multinational corporations to outsource production and pocket the extra profits that come from the seemingly lower costs in other countries. But this “Free Trade” isn’t free at all. The costs of these extra profits are extracted from the Middle Class and Poor of the United States. But, it is even worse than that.
There is a simplistic and fallacious argument that the outsourcing of jobs is justified because labor costs are less in the outsourced foreign countries and that the people of the United States are getting lower cost products and services. This argument is utterly false. They actually cost us MORE than domestically produced products and services. The products only appear to cost less because they do not include all of the hidden costs that we must pay to subsidize the foreign production and extra profits. The Hidden costs include the loss of jobs, the downgrading of the quality of jobs, the loss of revenue to the ancillary and service businesses, and the loss of opportunity for Americans to start small businesses in the USA. Each of these is paid for by all Americans. When a job is lost, the unemployed person does not magically disappear. They are still living and consuming resources from other Americans by getting Welfare, unemployment benefits, help from friends and family, or engaging in crime—which raises the costs of policing, the judicial system, prisons, and the actual damages caused by their crimes. There is also the costs due to increased drug and alcohol use, and added health costs from the increased stress of not having a job.
We hear that we are now in the age of globalization and must adjust to these new realities of free global trade. This is not true. There is nothing new about it. We have had widespread and heavy global trade for at least 400 years—going back to about 200 years before the founding of the United States.
This same “Free Trade” scheme was used to decimate the middle classes of each of the previously strongest national economies before the United States. These countries were the Netherlands and Great Britain.