At the present moment, almost every country on this hot planet has decided that their economy will be served best by a type of international trade called: “FREE TRADE.”
WHAT IS “FREE TRADE”?
“Free Trade” as the name implies is trade between countries with no import duties (taxes) applied.
Thus, the cost of a product to an importer is what the exporter is willing to demand.
This allows exporters in countries with very cheap labor to sell their products at such low prices that no company in the importing country can compete with the product at the level of its cost.
This is the major reason why almost all manufactured products sold in the USA and Europe are made in China or similar nations.
In addition, to make matters worse for the buyers of these goods, the importers attach Brand Names to the products, such as Nike, and sell them at prices that are huge multiples of their cost. (The Nike Company, for example, will buy shoes in Asia for approximately one tenth of what they sell them for in the West!)
The benefit of Free Trade accrues to the enormous international corporations that buy goods from countries where labor is unbelievably cheap and sell these goods to countries where labor is expensive and prices are traditionally high.
As a consequence of this Free Trade, labor in the importing countries becomes unemployed. The companies that employ labor and make products, cannot compete with the cheap foreign labor and they close; thereby putting their employees on the unemployment lines.
The few areas of employment are left in the Service Industry, such as health care and personal care and the mowing of lawns. There is also employment, for the time being, in the production of giant equipment, such as Boeing aircraft and Caterpillar machinery. It is only a matter of time before this type of industry is moved to China. We are already seeing General Motors open plants in China for the production of cars.
“Protectionism” as the name implies protects domestic industry from cheap foreign goods, by placing “Tariffs” (taxes) on those goods
as they enter the importing country.
This was the common practice across the worlds from the beginning of civilization.
Free Trade came into being in the last fifty years as the Elitists made a choice of abandoning the workers in their homelands and opting for much higher profits. In the past, Elitists protected their workers and were satisfied with the profits they made domestically. The new Elitists, however, have no allegiance to anything except money. By adding taxes the imported item was raised above the price of the domestically produced item, protecting the domestic manufacturer and his workers.
All countries, using Import Duties, protected their local industries and workers. The practice of Protectionism had been present on the Earth from the beginning of civilization.
This was a standard method of export/import trade until the latter half of the Twentieth Century when suddenly it was dropped.
WHY WAS PROTECTIONISM DROPPED?
There was a major change in the ownership of capital after the Second World War.
Whoever owns capital owns the underlying economic machinery that generates profits.
Owners of capital were formerly called: “Capitalists” and were seen as fat, greedy economic kings.
Karl Marx in his famous book: ‘Das Kapital” considered “capitalists” as the source of all economic evil.
He once said that “Capitalists would argue about the price of the rope that would be used to hang them.”
This type of wordage indicates that Karl Marx was a philosopher and not a scientist. Karl Marx wanted all people to have an equal amount of money. “From each according to his ability, to each, according to his need.” was his famous statement which summarized his values.
But, life amongst living beings is based upon only one value: Survival.
Those who can survive in the constant struggle for nutrition and avoidance of predators, become stronger. Evolution shows that these individuals bestow their talents in the form of their genes to their genetic successors.
Humans are no exceptions to this rule.
Capitalists were, and still are, inheritors of excellent genetic traits, in terms of intelligence.
They realize that the accumulation of capital allows their offspring to continue to live in an environment which is conducive to good health, good education and well being.
In all species, the same rule applies.
For example, when bacteria invade the human body doctors give their patients antibiotics which kill the bacteria. But, after time has elapsed, some of the bacteria become “resistant” to the antibiotics, and they survive and grow larger in numbers and almost always more deadly.
People are no different than bacteria.
The only difference is the time frame.
People take hundreds, or perhaps, thousands of years to develop their strengths which allows them to overpower their neighbors.
In general, those people who develop conquering talents, make an effort to remain genetically pure—that is, not breeding with weaker members of the human race. If we look about, we can easily see which groups remain genetically pure and which groups interbreed with others who lack the talents of economic and social survivability.
In the Middle East Jews and Armenians tend not to marry people outside their groups. In Europe, the Swiss also tend to marry other Swiss. In Latin America, the very rich marry each other, and one can see that the very wealthy in Latin America are almost always descendents of pure Spaniards.
In Asia, the same rules apply. Japanese marry Japanese and the rich Han Chinese marry other rich Han Chinese.
People with very high education or much wealth do not intermarry with uneducated or poor people.
In terms of Protectionism, we witnessed that those people who controlled the most capital approximately two decades after the Second World War were faced with a new problem: A powerful demanding workforce.
This demanding workforce was located in the USA and Europe.
There was only one answer: Drop Protectionism and send the machinery that generates profits to an area where both the government and the workforce is favorable to capital. That was done.
In order to appease the populations of the West an intense and ongoing propaganda effort was set in place and continues to this very day.
The Message: “FREE TRADE.”
WHAT IS “FREE TRADE?”
The word “Free” is the most compelling word in the English language.
If we use the word “FREE” and any other noun, suddenly the noun becomes attractive.
The reason for this is simple: Humans are essentially animals that do not like to expend energy. No animal wants to expend energy without a reward, but humans have the ability to use symbols and the word “FREE” is a symbol which can be placed before a noun and thereby modify the noun.
When we modify a noun by using “FREE” in front of the noun, we instantly bring a smile to the reader or listener.
Every marketing agent, sales agent or propagandist is fully aware of this effect, and the use of the adjective “FREE” is ubiquitous (everywhere) but most people have a positive feeling when they hear this word.
It is an extremely rare person who has a negative feeling when they hear the word: “FREE.”
However, the reader is advised that absolutely nothing is “FREE.” When you hear the word “FREE” simply say: “That’s a lie!” and dismiss the rest of the statement.
With this in mind, we can see why it was so easy for governments and managers of capital to remove Protectionism and replace it with “FREE TRADE.”
WHY ECONOMISTS LIKE FREE TRADE
Economists are specially educated professionals who have studied history and business. They invariably like the concept of Free Trade. In their minds, if you can reduce the cost of an item, you are doing the consumer a favor. For example: If cars grew out of the ground like mushrooms and they could be picked and driven away free of charge that would be good for society.
Would it? Although society gets manufactured goods free of charge, it also eliminates a source of jobs. Mushroom cars would eliminate all the businesses that produce cars. It would cause massive unemployment in the auto industry. Consumers would have free cars, but the unemployed could not buy the gasoline to fuel those cars. When capitalists buy their goods in China and sell them in the West they are essentially putting people out of work.
The economists think that this fine. Society has gotten something at a lower price. Therefore this is better for society. By lowering costs for goods, according to economists, society benefits.
This would be true if the all the capital in society would be distributed equally.
Unfortunately, capital in every society on the planet is distributed unequally.
Therefore, when goods are cheaper, those people at the bottom of the ladder of capitalism pay less, but they do pay something, and many end up with no capital.
Those at the top of the ladder of capitalism pay less, but relative to those at the bottom of the ladder, they become wealthier.
THE RATIO OF THE VERY RICH TO THE VERY POOR WIDENS
We see this widening of the ration of the rich and poor across the globe today and throughout history.
Since this disparity of wealth causes social unrest to the point of armed rebellions, philosophers have tried to formulate solutions that would redress the capital inequality.
The latest attempt at a solution was ‘communism.”
When “communism” was tried in Russia for a period of eighty years, the result was economic failure.
Today, communism is being tried in China with a new style of government, where instead of a few people who control the economy, large groups of people are trying to keep the wealth of individuals within reasonable limits.
The Chinese government wants to keep the ratio of capital between the very rich and the very poor restricted. They do not want to fall into the trap of extremes in wealth that has occurred throughout history.
The Chinese Communist system is already breaking down.
We are seeing many Chinese becoming super-rich.
Corruption has always been part of the Chinese government, as it is part of all governments.
The reason for corruption is the delegation of power from the individuals outside of government to individuals inside of government.
Power means the ability to amass wealth,
Government officials, because they have power to change the behavior of non-governmental workers use this power to make themselves richer.
The only way to eliminate this problem is by eliminating government.
CAN GOVERNMENTS BE ELIMINATED?
The answer to this question is: Yes!
Today, with the technology of mass communication through the Internet and through cell phones and other similar devices, the publics of the world have access to pure democracy.
The public can write its own laws and vote on those laws, eliminating “representatives.”
“Representatives” and other higher governmental officers are anachronistic. (From a former time in history. Out of date.)
They represent that period of time when communication did not exist in any meaningful way.
People of the past delegated their authority to other people, who swore that they would “represent their interests” in government.
Of course, these “representatives” did not represent their voters; they represented their own selfish interests and corruption was born.
When humans install truly democratic forms of governance, where all the people vote directly for laws, and for those officials needed to adjudicate those laws or maintain peace and order, the quantity of corruption will drop precipitously.
We see that already in those small countries where referendums are held for all serious legislation.
In several small countries in the Baltic area, voting via the Internet is already taking place.
Here is an excerpt from Wikipedia:
“Electronic voting systems for electorates have been in use since the 1960s when punched card systems debuted. Their first widespread use was in the USA where 7 counties switched to this method for the 1964 presidential election. The newer optical scan voting systems allow a computer to count a voter’s mark on a ballot. DRE voting machines which collect and tabulate votes in a single machine, are used by all voters in all elections in Brazil and India, and also on a large scale in Venezuela and the United States. They have been used on a large scale in the Netherlands but have been decommissioned after public concerns.
Internet voting systems have gained popularity and have been used for government elections and referendums in the United Kingdom, Estonia and Switzerland as well as municipal elections in Canada and party primary elections in the United States and France.”
This is the very beginning of direct public control of the agencies of government.
HOW DOES DIRECT CONTROL OF GOVERNMENT AFFECT FREE TRADE?
If manufactured goods grew in the ground like mushrooms, and people could simply pick them up without paying a penny, most people should be happy.
Yet, the owners of the factories, or the importers of these goods, and their employees would be very unhappy.
Their profits and their wages would disappear.
As a consequence, the owners and workers would demand that such goods be destroyed by the government. This form of destruction actually happened during the Great Depression of the 1930’s when farmers buried oranges in California and buried pigs in other states, hoping to raise prices for these products.
Here is an example of what the U.S. Government did under the auspices of the Agriculture Adjustment Act (AAA).
“Unfortunately for its backers, the AAA got off to a horrible start. Because the 1933 crops had already been planted by the time Congress established the AAA, the administration ordered farmers to plow their crops under. The government paid them over $100 million to plow under 10 million acres of cotton. The government also purchased and slaughtered six million pigs, salvaging only one million pounds of meat for the needy. The public neither understood nor forgave the agency for destroying food while jobless people went hungry.”
In effect, this is what happens when cheap goods are imported from countries with cheap labor.
Protectionism in the form of tariffs are used to protect the owners, importers and their workers from the cheap imports.
Since the advent of “Free Trade” such tariff were disallowed by the international governments, and although the workers became unemployed the importers became super wealthy.
Nike is the prime example of this form of robbery.
If, however, the profits of the cheap imported goods were redistributed to the workers instead of the owners, the workers would be very happy.
But, the owners would be unhappy, and they would not engage in the importation of such cheap goods.
The problem then becomes, how do you benefit both workers and capitalists so that cheap goods can be brought from other countries?
The problem of an equitable distribution of wealth has plagued the world since the beginning of time.
No nation has ever solved it. Russia, under the spell of Karl Marx underwent a revolution and formed the USSR which tried for over 80 years to distribute wealth equitably. It was a complete failure. Cuba, under the control of Fidel Castro, has tried communism, and it too was a complete failure.
China, today, under the control of the Chinese Communist Party, has not failed. China, after being established in May 1919, slowly grew for almost a century to the point that today the Chinese population is seeing a slow redistribution of wealth.
However, we are seeing the evolution of a wealthy class and the usual corruption that comes when wealth flows into the hands of a very few. Nonetheless, the Chinese Communist Party is reacting favorably towards the Chinese poor, by punishing corrupt officials, generally with a bullet to the head, and with integration and control of the very wealthy.
WHY ARE THE CHINESE SUCCEEDING?
The Chinese are succeeding where Europeans and other Westerners failed because they are genetically different.
Although China was a failure in the area of wealth equality since the beginning of its civilization, when the time came for the idea of communism to enter the social psyche, and, when the Chinese population was so immense that further failure would mean an epidemic of revolutions, the Chinese mentality responded favorably.
The Chinese genetic structure favors group harmony and is lacking in excessive genetic aggression.
Chinese family life is one of general harmony. The entire family, from great grandparents, to children and cousins, can all live together
peacefully in very small quarters.
The Chinese language is replete with different terms for every family member. The brother of the mother has one term and the brother of the father has a different term.
In European languages, both would be called “uncle.’
The Chinese language reflects a genetic endowment that is quite different from Western genetic endowments. It is well established that languages represent the personalities; and, hence, the genes of the populations.
We can see the startling difference between Chinese and European written languages.
This is not a matter of chance, since both styles of writing evolved over thousands of years.
CULTURE AND GENES
Every culture on this planet is a manifestation of the genetic make-up of the citizens who develop that culture.
Citizens genetically endowed with lower intelligence have cultures that are very chaotic and lacking in the artifacts of culture.
We can go to various areas of the world and see nothing of the architecture or other cultural remnants of the past.
There are no buildings, no statues, no graphic art, no written artifacts that were created over a thousand years ago.
However, when we examine Europe, China, North Africa, the Middle East and Central America, we see evidence of peoples who have had culture and government for the last three to five thousand years.
This is the result of genes that foster art, architecture and government.
Without these genes, there is no hope of having a society which can have an equitable distribution of wealth.
However, when a population has the genes for art and government, but also prominent genes for aggression, then the probability of a peaceful distribution of wealth disappears.
Most Europeans and the people of the Middle East have unique genes for creativity, but also strong genes for aggression. There are few European populations who have been blessed with enough genes that endow their holders with a behavior which we call “Self Control” and these populations have avoided warfare over the ages.
Since these populations are very small, so are their countries. These people avoid joining large groups. They have the ability to be self sufficient, and they also share their wealth.
The Swiss and the Norwegians are the prime examples of these groups.
If a population wants to avoid the perils of economic failure, it must first reduce its population size if its genetic structure
The goal is to have a majority of citizens with similar values.
If we use a living body as an example, we notice that all organs that function have similar cells.
The liver, kidneys, intestines and brain, for example, have all similar cells and these cells work harmoniously together.
A brain with liver or kidney cells within it would not function.
The world population, like a living body, needs specific molecules or goods, from each area.
A body needs insulin from its pancreas and glucose from its liver or it will die.
Europe needs oil from the Middle East and wheat from Argentina or it will have an economic calamity.
The larger the nation is, the larger are its requirements, and that fact makes a larger political entity more vulnerable to external shocks.
Contrary to popular beliefs, a larger economy is much more vulnerable than a smaller economy.
We see in Cuba, a very small economy, that in spite of its unnatural political structure, and its isolation by the U.S. it has survived for more than half a century. The USSR, a large economy with the same unnatural political structure, collapsed after half a century.
A small nation, like a small family, has a greater ability to adapt to harsh conditions. When people have reorganized themselves into small political groups, they must then undertake those functions to which they are best suited genetically.
This may be in the areas of art, agriculture, manufacturing, trade or finance.
Luxembourg, for example, has diversified into many areas, including small farm agriculture. Luxembourg has the highest per capita income in the world and the lowest unemployment rate. It is a perfect example of what the populations of Europe should try to emulate.
The countries of the West are courting disaster by trying to support immense political structures, which are grossly inefficient and totally unproductive.
The only method being used to support these dinosaurs is through the use of debt and debasement of currency.
The populations of the West need to move towards much smaller political entities and more economies that reflect the genetic endowments of their population.
This will result in governments and economies where wealth distribution is equitable.