AMERICANS ARE COMMITTING (ECONOMIC) SUICIDE DAILY WITH IPHONES AND IPADS

Americans gain little from trade with Third World countries. Americans are letting their futures get ripped away for a few trinkets like iPads and iPhones.


This is what happens:

 ✘ Foreigner owners of factories produce goods with lots of labor and little capital — very inefficient.

 ✘ Because foreign production is inefficient — low capital, little output per person — even though total output is high because of the sheer size of the workforce — wages of foreign workers are low.

 ✘ Because the cheaper imports not made with much capital per worker undercut the return to American capital, new capital investment slows in the USA.

→ Capital is the source of wages. If there is no capital and no return to capital, there can be no wages paid. Higher wages comes from higher capital spending per worker.

 ✘ Less capital per American means lower wages.

✘ Lower wages means lowering living standard masked by being able to buy cheaper foreign products.

✘ US-based financiers transfer their investments from ever falling returns on USA based capital to foreign countries.

✘ Eventually, all high-paying jobs in the USA disappear.

✘ Income inequality continues to widen as USA-based rich financers get richer on a growing world economy.

✘ Americans get substantially poorer.

✘ Foreign workers go from abject poverty to working-class poor.

1. Reciprocal free trade only works with foreigners whose capital spending per citizen is about the same as ours. This is authentic free trade. 
2. Under a system of Free enterprise with true free markets competition with authentic free trade, it becomes harder for some Americans to become obscenely rich. Almost all Americans are better off. Far fewer Americans are extremely better off.
3. Without Third World tariff-free imports, Americans living standards forever rise under capitalism.
4. Without Third World tariff-free imports, Americans would gain much higher incomes to afford to buy iPads and iPhones built right in factories right in the USA.
5. With Third World tariff-free imports, Americans living standards forever fall because capitalism falls in the USA but rises elsewhere.

Look at it this way with easy-to-get math. Let's make big assumptions like capital is uniformly spread over each worker and yields a uniform output.

• USA: $1,000 @ 10 workers = $10,000 output
• CHINA: $100 @ 1000 workers = $100,000 output

In the USA, workers get $100 worth of capital to use. While in China, workers each get $10 worth of capital to use.

American workers are 10 times as efficient as Chinese workers are. Yet, Chinese workers can produce ten times as much. As costs are much lower for Chinese (wages and capital outlays), the Chinese can accept lower winning bids (prices) for the same products.

There is no way Americans can compete. It's because of labor and not capital that Americans can't compete with the Chinese. The net result is simply a destruction of American industry until Americans get reduced to Third World status.

Conclusion:

✓ Americans become much more like Third World workers while Third World workers rise up a bit.

✓ Wage rates get equalized the world over but at much lower levels.

✓ Ownership of capital gets concentrated in ever fewer hands — there are more super-rich but fewer relative to total population.

And when unrestricted immigration happens — immigration where the foreign-born population exceeds 5% of the USA-born population — this only accelerates the fall in wages. For more on that, read my works. If you read these works, you will understand fully what has been happening to Americans and our economy:

• SOPHIE'S CHOICE OF CAPITAL OR LABOR. A FREE-MARKETS LIBERTARIAN BECOMES AN ANTI-CAPITALIST AND PERPETUATES AN ECONOMICS MYTH
• ILLEGAL IMMIGRATION. WHY IT'S BAD FOR YOU AND A BOON FOR ANTI-CAPITALISTS.
• JASON X AND LEW ROCKWELL'S CULT OF MISES. ANOTHER EXAMPLE OF WHY AMERICANS ARE IN BIG TROUBLE.

And here are a few works on politicians running for the presidency and what they say about all of this:

• MARCO RUBIO CLAIMS THAT AMERICANS ARE STUCK WITH ILLEGAL ALIENS. THE ROOKIE U.S. SENATOR RUNNING FOR PRESIDENT CLAIMS CONGRESS IS POWERLESS TO DEPORT ILLEGALS.
• RAND PAUL GOES FULL RETARD, SIDES WITH DEMOCRATS AND TURNS HIS BACK ON WORKING-CLASS GENERATIONAL AMERICANS
• WHY TRUMP IS WINNING. THE REST ARE INTERNATIONALIST SELLOUTS WHO STAND AGAINST WORKING-CLASS AMERICANS.

The most recent proposed trade deals — the Trans-pacific Partnership and the Transatlantic Trade and Investment Partnership are not even free trade deals.

TPP and TTIP are treason by other means. TTIP would turn over control of the USA commercial regulatory mechanism to the EU bureaucrats in Brussels, essentially. It would erect huge barriers to entry that protect U.S. mega corporations from upstarts at home who would best them with new technology and thus render the extant capital structures of these mega corporations obsolete — the creative-destruction that makes authentic free-markets capitalism thrive.

If these supposed reciprocal trade deals were good for all Americans and not merely for the shareholders of a handful of mega corporations, 100 senators would vote aye. There would be no need to vote in a rule that lowers the passing vote to 51 votes and kill the procedure for amendments. That is what trade promotion authority (TPA) is all about.

Think about it.

The bogus rules changes arise strictly because bad senators who want these deals need camouflage for their re-election. With these deals, they can say the didn't vote for deals like the Trans-pacific Partnership but still be for such deals merely by abstaining or voting nay.

All of these senators want these deals, all 100. All 100 work for the internationalists and not their states' legislators. That is why the 17th Amendment needs repealing.

If you think the economy is bad today, if TPP and TTIP pass, never again will Americans have high-paying jobs. There will be generation of all races and not merely blackies, including tens of thousands of healthy males every year, who will never work. They will live cradle-to-grave on welfare. 

Life will become as it is in France right now.

Americans have been digging their own financial graves since the 1990s by trading with China, the Mexico part of NAFTA, CAFTA-DR and the like. It's great for internationalists and mega-capitalists but not so great for working-class Americans.

For more on that, see: TRANS-PACIFIC PARTNERSHIP OF ESTABLISHMENT INTERESTS TO SCREW YOU OVER


Look, I like fruits from the Caribbean like the next guy. We would have gotten those cheap all the same.

Anything not grown in the USA should come duty-free into the USA, stuff like coffee.

We should have free trade with countries that are comparable in terms of economic development as measured by capital per capita. That makes sense.

If the Norwegians are better at making digital sensors, then Americans should stop and use capital elsewhere to make something more efficient.

But Americans can never compete with Third World countries who can throw a mass of labor at the production problem.

Foreigners should be forced compete against Americans through efficiency under capitalism as capitalism is the only way to get a high living standard. What is killing the USA and our economy and capitalism itself is importing goods taxes-free from third world countries whose means of competition is a mass of workers with little capital.

That is why import taxes (tariffs) should exist.  Import taxes ought to be levied at the rate of the inverse of the ratio of foreign per capita GDP to USA per capita GDP. So for example, because Canadian GDP per capita is $50,271 while American GDP per capita is $54,629, a tax of 7.98% should be levied on imports coming from Canada

Here is the math:

(1 - ($50,271 ÷ $54,629)) × 100 = 7.98%

Likewise, Mexican GDP per capita is $10,361. So a tax of 81% should be levied on imports coming from Mexico!

I wrote about how trade should be done in this one:

WHY TRUMP IS WINNING. THE REST ARE INTERNATIONALIST SELLOUTS WHO STAND AGAINST WORKING-CLASS AMERICANS.

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TRANS-PACIFIC PARTNERSHIP OF ESTABLISHMENT INTERESTS TO SCREW YOU OVER

They used to call these kinds of deals reciprocity and not "free trade". The earliest "free trade" agreement of the United States Congress of which I know is the Treaty with Canada of 1854. The 33rd U.S. Congress signed a treaty with Great Britain, then owner of Canada in a deal that resembles the U.S.—Canada Free Trade Agreement, the deal that preceded NAFTA.

Basically, reciprocity meant a treaty relation between two independent powers such that the citizens of each are guaranteed certain commercial privileges at the hands of the other. Specifically, such deals meant tariff reductions made by some specified nation or country in compensation for some reductions made in favor of such a nation by a second.

Since the advent of mass media of the 20th century and now carried into the 21st century, Congress and the aristocratic establishment of the United States have gotten ever better at manipulating the masses with their wordsmith games. Claiming reciprocity as "free trade" is one of those games. Who could be against anything free?

These trade deals basically protect the largest commercial interests of each respective country while opening up everything else to the largest interest to poach what isn't acknowledged as protected.

Sadly too many confuse these large commercial interests with free-enterprise. Nothing could be further from the truth. These big commercial interests are owned by those who fear competition. That is why they use law to kill competition and use rhetoric to deceive the many as to their designs.

The goal of course is to protect extant capital structures from pesky upstarts with superior technology who might render a firm worthless overnight by exposing an antiquated capital structure. Protection means protected firms gain unearned profits, excess profits. This is the primary cause of what many believe is "income inequality".

On behalf of major shareholders, the execs of GM, Ford, GE  and all of the rest of the big players love these deals. They can set up factories in foreign lands, avoid shipping and hire vastly cheaper labor.

And while it means the random Vietnamese will see his wages rise — good for him — that rise comes from someone else's pocket. Sure the total pie will grow, but the pie doesn't grow in a perfect circle, proportionally.

Run long enough, per capita wage rates should equalize. Americans should get poorer. Australians should get poorer. Japanese should get poorer. Everyone else should get richer, per capita. And regardless of domiciled country, those doing big-scale exporting should get vastly richer.

And since those living in other countries don't pay as many taxes as Americans, in effect, wage-working Americans will end up subsidizing foreigners whose break evens are lower, all things else being equal.

Main Street Americans ought to be calling for 100% free trade combined with an indiscriminate flat tariff, maybe 5%, maybe 10%, on every good imported into the USA. Since foreigners want access to Americans and their wallets, foreigners ought to pay tolls to access ports, roads and bridges like everyone else involved in insular trade. All should expect foreigners to do the same in any true free trade deal with Americans.

Sadly, many 20-somethings who believe they are libertarians, when in fact, they are pseudo-libertarians have been trained to react in knee-jerk reaction to anyone who points out the truth about bogus free trade or supporting illegals who take jobs from Americans because illegals have lower break evens since they don't pay income taxes (see: ILLEGAL IMMIGRATION. WHY IT'S BAD FOR YOU AND A BOON FOR ANTI-CAPITALISTS).

The USA is fast becoming what Nationalist Socialist Britain looked like after World War 2, except without having major firms nationalized — management appointed by legislators, workers as government employees, dividends flowing to aristocrats. In the contemporary USA version, Americans get forced to buy from oligopolists, often by force of law — think Obamacare — while bailouts happen when necessary — think 2008 (GM, Chrysler and the bankers).

True, authentic, free-markets capitalism is what lifts everyday people from poverty. True, authentic, free-markets capitalism is what narrows the gap between rich and poor. 

The extreme rich don't want that gap narrowed. They will protect their status at all costs. They will even turn to communism if it means they get to keep their power and status.

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GENIUS OF THE PAST SHINES A LANTERN ON TODAY'S DECEPTION. LESSONS ON THE SOCIALISM OF OBAMACARE, PURPORTED FREE TRADE AGREEMENTS AND SOCIALIST REVIVALISM OF GREECE AND EUROPE

Yesterday, in , CONTEMPORARY ECONOMICS. ITS TRUE ORIGINS AND WHY IT IS FAKE, I gave you the first part of an essay, On the Science of Economics and Its Relation to Free Exchange and Socialism, written by the brilliant Henry Dunning MacLeod, an eminent banking lawyer of his day and a man who knew more about trade and reality than all those who have since lived and died who have called themselves "economists".



Today, I give you the second part of the essay, itself in two parts. In the first part, MacLeod is gives a lesson on free trade. This lesson holds true whether such trade is insular or foreign. In the second part, MacLeod is gives a lesson on the foolishness of socialism.

When reading this lesson you could apply his lesson upon Obamacare, an example of regulated insular trade, or any so-called contemporary "free trade agreements," which, long ago, all thinking men recognized as treaties of reciprocity designed to promote particular interests.



Here MacLeod begins to lay down his argument that while free trade is inherently right, any force that interferes in free trade between two is little more than robbery by another name.



And here MacLeod lays down what libertarians would recognize as the non-aggression principle long before 20th century libertarians existed.



And then MacLeod reveals how the interference by legislators in the trade of property to the benefit of favored parties amounts to robbery by other means.



To help the reader understand, MacLeod provides an example.



From here, MacLeod dives into his argument.




Though in other writing, MacLeod finds fault with Adam Smith and his many confused, false beliefs, MacLeod praises Smith for his work on free trade.



MacLeod then describes the rise of the dangerous and harmful doctrine of socialism in France.



MacLeod then reveals how “reciprocity” and “fair trade” are merely protectionism under different names.



MacLeod further exposes socialism.



MacLeod reveals the true meaning of value. It's a ratio.



MacLeod reveals that property known as wealth becomes wealth precisely because of trade and by no other means. Said another way, nothing in itself has value but a value arises from the trade rate as expressed by the ratio of one thing traded for another.



MacLeod reveals how the otherwise smart John Locke blew it when it came to economics.



And then MacLeod reveals the errors of Adam Smith, errors that David Ricardo would repeat and from which Karl Marx derived his entire erroneous theory.



MacLeod shows how David Ricardo erred much like Adam Smith. Ricardo's errors provided the basis for Karl Marx's beliefs.



And here MacLeod connects the Socialists with the fallacies of Adam Smith and David Ricardo.




MacLeod shows how the existence of credit exposes the foolishness of socialist belief.



MacLeod sums up his thoughts here.

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CONTEMPORARY ECONOMICS. ITS TRUE ORIGINS AND WHY IT IS FAKE.

Today, few if any Ph.D.s of economics know the history of their field. If they know a history, likely it is one produced of propaganda to support their current false paradigm, a paradigm that fails to describe the reality of trade. Trade, of course, is the purchase and sale of property in pursuit of profit, is the only activity that gives rise to an economy.

It's unlikely that Ph.D.s like Ben Bernanke and Janet Yellen much less your local university department staffers would know the connection of Jacob Vanderlint, Dudley North, Aristotle and Socrates to trade if you were to mention those names to them.

In an essay titled, On the Science of Economics and Its Relation to Free Exchange and Socialism, the brilliant banking lawyer Henry Dunning MacLeod gave a brief on the history of the academic field of economics, which all who care to reason about and discuss their lives and their government should know.





MacLeod begins to take down the myth of Adam Smith.



MacLeod reveals the Physiocrats as the founders of modern economics.




MacLeod connects liberty, which is freedom, or that realm where politicians are content to leave alone anyone. Said another way, liberty is the absence of law in the presence of government. And of course, where politicians make no law, there are no right and no corresponding duty.



Here, MacLeod reveals the connection between property, which always means the right of ownership and not what is owned, with liberty, which always means the absence of law in the presence of government.




MacLeod examines the doctrines of the Physiocrats.



MacLeod reveals what the ancients already knew.



MacLeod discusses the strange fallacy of money (coined metal by weight and fineness) as the only wealth.



MacLeod discusses what the Physiocrats had wrong.



MacLeod discusses the rise of Adam Smith.



MacLeod discusses the confusion Adam Smith expressed in his work.



MacLeod discusses the foolishness of J.B. Say, an early hero to those who claim to be adherents of the Austrian School of Neoclassical Economics, which was once known as the Psychology School, but as a school of neoclassical economics, its adherent fail to understand the reality of trade.




MacLeod exposes the foolishness of John Stuart Mill.

 


Suffice to say, in his day, academicians loathed Henry Dunning MacLeod precisely because the man revealed many expressed fallacies from which academicians of economics espoused their theories.

Today's academicians of economics have compounded their errors by building upon the cherry-picked false foundation of the Physiocrats, Smith, Ricardo, Say, Mill and others who came after and made more mistakes like Alfred Marshall, John Maynard Keynes, Paul Samuelson, and cast of other 20th century clowns. These days, jokers like Paul Krugman and Thomas Piketty preach the false doctrines of economics.

The basis of the academic field of economics is the pseudo-scientific concept of utility, a faux psychological phenomenon never proven. Thus, the entire field as it stands is bogus.

As I explained in WHY IS THE ECONOMY SO HORRIBLE? BECAUSE ACADEMIA ECONOMICS IS FAKE, the entirety of trade, or commerce, or real economics ties up with two words — property and profit. Without profit from effort, anyone would lack buying power to buy anything else. Without property, no one can trade.

Trade, or commerce, or real economics is about acquisition of rights to own stuff. No one can derive satisfaction until that one owns. All talk about pleasure, pain, satiation, utility and the like is irrelevant until acquisition.

All should reject contemporary economics. It's fake. All of its priests, ministers, and preachers are little better than self-deluded con men.

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