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Free Trade Vs. American Jobs
With half of all 25-year-olds living with their parents as Zero Hedge reports, it is the perfect time to enact a mystery trade agreement that increases unemployment and puts pressure on already stagnant wages.
Free Trade Vs. American Jobs
Courtesy of Dr. Paul Price at Market Shadows
Thursday’s Wall Street Journal included a feature article on the Trans-Pacific Partnership, commonly called the TPP. The headline read, “TPP is a surprising vote of confidence in globalization.”
The WSJ’s subtitle spoke about the bill’s limitations on national sovereignty. Member countries would give up control of their own laws while subjugating decision-making to unelected officials and business groups with vested interests in the results. The WSJ noted that political support for the TPP was strong, except here in the USA.
Americans should be opposed to this secretive, Wall Street-promoted trade agreement. Here's why:
Tariffs and patent protection periods would be reduced while most rules and regulations would be set and enforced by outsiders. Many of the new terms will be in conflict with existing American laws, but they will take preference.
[This aspect of the agreement is extremely important. As CGT at Zero Hedge writes in the comments, "The TPP includes arbitration to solve problems corporations have with, 1) EPA rules, 2) FDA approval or denial of new drugs and health products, and 3) sovereign, state and local laws concerning safe and unsafe products. This treaty subordinates sovereign legal systems and sets up an independent legal system outside a country's legal system to solve disputes. The arbitrators are employed by the same law firms on retainer to the largest mega corporations in the world. [The judgments of the arbitrators are binding outside the sovereign legal systems of the countries] that sign the agreement. Tax payers are held liable for the fines. And anything that can cause a loss of profit is cause for arbitration... This treaty does not represent free trade but the giving away of sovereignty of the USA and any other signer of this." ~ Ilene]
The advertised intent of the TPP is to make international trade cheaper and easier. And it probably will -- for large, international corporations. Some business will benefit, but others will lose. Not surprisingly, Wall Street strongly supports the agreement.
All the negotiations have been done behind closed doors. The public cannot see what is actually being agreed to. There has been no opportunity to openly debate the terms of the agreement and the likely effects of the TPP on the American economy. We are being asked (or ordered), once again, to approve a massive change in our economic system without knowing what we will be encumbered with.
Nancy Pelosi's line on March 10, 2010, when speaking about the Affordable Care Act (a.k.a. Obamacare).
There is one thing we know, however, and that is that historically agreements like the TPP have not benefitted the public.
The General Agreement on Tariffs and Trade (GATT) was hammered out and implemented between 1947 and 1956. Its tariff reductions jump-started the rise of international trade as a percentage of global GDP. It also facilitated the offshoring of US manufacturing jobs to lower wage areas.
The North American Free Trade Agreement (NAFTA) kicked in after 1992. Presidential candidate Ross Perot warned of the “giant sucking sound” from Mexico as US jobs migrated to south of the border.
The Canadian-US Free Trade Agreement brought more competition for American workers. Each expansion of ‘free trade’ gave US companies larger incentives and greater ease in moving jobs out of America.
China was given World Trade Organization (WTO) privileges early in this century. Through permanently normalized trade relations and lower tariffs, China gained easier access for exporting goods to America. NAFTA was bad but the setting the Chinese free to sell goods here with little restriction was the final nail in the coffin for domestic manufacturing jobs.
It is not a coincidence that our own labor participation rate (the percentage of all working age people who actually hold jobs) peaked in the mid-to-late 1990s. As of Sep. 30, 2015, that very important measure had retreated to 62.4%, a 38-year low.
Seeing the WSJ's "Path to Free Trade" and America's Labor Participation Rate together shows how much damage was done to our industrial job base since the most significant [red framed on the chart below] trade agreements were put into force.
You don’t need to be Einstein, or an economist, to realize that lowering trade barriers reduces domestic manufacturing jobs on a continual basis.
The chart below from The Atlantic shows that US manufacturing jobs have been starting to slowly improve since the 2008 financial meltdown. But the TPP will likely work against an already weak recovery. Considering that there has been no recovery in wages, further outsourcing will only add to the pressure on wages in the US:
Scott, of EPI, worries that the biggest damage from TPP could be to U.S. wages. The trade pact will increase the importation of competing goods, which will drive down the cost of U.S.-made goods, putting downward pressure on wages. It will open up countries such as Malaysia and Vietnam to foreign direct investment. It may be good for certain businesses and holders of intellectual property patents, but that doesn’t mean it’s going to be good for everyone.
“Make no mistake, it’s certainly going to increase income inequality, and it will, in all likelihood, lead to offshoring a job loss,” Scott said.
Perhaps what is most worrying, though, is the potential that TPP, or any trade agreement, could slow the reshoring of American jobs, especially in some fields such as auto-parts manufacturing, which states in the South such as Tennessee and South Carolina are competing to attract.
[...]
U.S. Manufacturing Jobs, in Thousands
There are many reasons to oppose the TPP including the likelihood of more job losses in the US, further eroding of the US middle class, the strong potential for increasing inequality, stronger intellectual property protections for pharmaceuticals, looser restrictions on corporations polluting the environment, and the undermining of democracy in favor of corporate rule. But the charts above are powerful reasons alone to reject the TPP.
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Nobody f***ing cares, duh! Most Americans seem to be illiterate and only care about Kim K. and 'Dancing with the Stars'. They don't understand debt, embrace reckless spending, have a party-till-you drop attitude. Most know their government will support them no matter what happens. So long as they can have an EBT card and a new I-phone, Hillary gets their vote. It makes perfect sense. Whoever threatens to take away the handouts, ain't gonna get elected. Congress will increse the debt ceiling, vote for the TPP, send us to war, etc.. The Fed bankers will push the markets higher..What is so hard to understand about the 'New Normal'? The alternative is to watch the cities burn...and they likely will anyway. The short-sighted appease the masses congress, has ensured that.
On the Dem side: Bernie Sanders has opposed this all along. He spoke out against NAFTA and voted against it. Clinton initially supported the TPP, calling it the "Gold Standard". Until she figured it was a good idea to change her stance, given the tremendous opposition to it. Of course, another member of her household brought NAFTA in the first place. Since Hillary is bought and paid for by Wall Street who supports the TPP - I'm sure her (supposed) new stance is just another one of her lies. I myself find it astounding when reading some of the nationwide polls where there is a great majority of people who consider her to be dishonest and untrustworthy (disingenuous). How the hell can a person so widely considered to be "someone who cannot be trusted" be leading the Dem pack? Only in America.
Ilene the TPP includes arbitration to solve problem corporations have with,
1. EPA rules, 2.FDA approval or denial of new drugs and health products. 3. Sovereign, state and local laws concerning safe and unsafe products.
This treaty subordinates sovereign legal systems and set up an independent legal system outside a countrie's legal system to solve disputes. The same arbitrators that solve arbitrations are employed by the same law firms on retainer to the largest mega corporations in the world. Currently there are 15 arbitrators 13 in the USA and two in Europe. They decide in a secret negoaition and rule outside all of the sovereign legal systems in the world. Their judgement is binding on all sovereign country's that sign the agreement and tax payers are held liable for the fines. ANYTHING THAT CAN CAUSE LOSS OF PROFIT IS CAUSE FOR ARBITRATION.
This is why the treaty is being negoiated in secret only to be revealed 5 years later. Total Fascism in my mind. I cannot use this system to sue a corporation and yet corporations can use this system to basically sue for almost anything that impacts their profits. This treaty does not represent free trade but the giving away of sovereignty of the USA and any other signer of this.
This treaty will just send more jobs to Cambodia, Vietnam and S. Korea. These are the low labor cost countries in the world for now. Europeans are protesting this big time and it is being blacked out in the USA. Why? Because Monsanto will finally get into the EU with their GMO crops. The EU actually has higher standards in their food chain then we do. This will also alllow for chemical washing of poultry and meat products. This is currently against the law in Europe. This is just another loss of our sovereignty and rights to stop illegal actions of mega corporations and nothing more.
Thank you, that is a very good point that Paul didn't focus on but I'll add a few extra sentences to the article.
without true party of USA interest only, there is no hope, short of civil war to change the direction of NWO and international big business bleeding the US population. brain washed people told "free trade is good"..while standing in line for food stamps..and the import of millions of third worlder voters who benefit from open borders, and could care less about the american middle class. much like the common .gov loving people of the EU are finding out.
These are great charts that really show the destruction(self-inflicted) our government is causing our people, so a few at the top benefit, its sickening really? What "good" country would willingly do this to their people? Our leadership is made of BAD people. A greedy bunch of ignorant fools is who. Who are these people working for? It sure as hell is not for the American People. We need to revolt if TPP passes, even the rest of the world hates it? Its very simple. REJECT TPP! THEY ARE ALL FUCKING AHOLES DONT BE FOOLED AGAIN, FREE TRADE POLICIES ARE DESTROYING US? DUH? FOOL ME ONCE, BUT FOR THE HUNDREDTH TIME? THE AMERICAN PEOPLE ARE ALSO STUPID FOR LETTING THIS GO ON!
Nice Piece! 28.7 million jobs exported? WTF? GEE I WONDER WHATS WRONG IN ONE ARTICLE? ONLY A DOUCHE BAG DOESNT GET IT? NO JOBS, NO ECONOMY.... DUHHHHH! Our politicians are ignorant, GREEDY, CUNTS! Im ready to fight just let me know where to show up? And not against AMERICAN CITIZENS, AGAINST OUR GOVERNMENT! THE ONES EVERYONE ELSE IN THE WORLD HATES TOO!
We either do it now? OR we do it after they destroy everything they possibly can? This article make it completely clear the lie Washington has been selling to its people for decades now! Time for the leadership in this country to go! THEY FUCKING SUCK! LOWLIFE SCUM! VERY SIMPLE
Maybe if we become responsible for ourselves once again and take our own douche bag government out the rest of the world will have some respect for us again? Just a thought.
The fact that OBAMA is behind TPP makes it very clear that OBAMA is BAD for AMERICA, plus all the other REPUBLICANS AND DEMOCRATS THAT SUPPORT IT. This crosses both party lines,
"OUR GOVERNMENT SUCKS IN ONE ARTICLE" SHOULD BE THE TITLE. NO WHERE IN OUR LAW MAKES THIS DEAL LEGAL TO MAKE IN SECRET THIS DEAL IS ILLEGAL.
wow, where you been?? there is only one party in dc, has been long time GI.
I understand, just needed to clarify for all the other idiots out there who dont get it STILL. The reason TPP will never work for the US is we have much more than anyone else to lose.
Globalization is all about world leaders sticking together to shaft their populations.
What better reason do we need for voting for Trump. Trumps not bought and paid for by the international shysters.