http://www.tfp.org/tfp-home/news-commentary/the-offshoring-frenzy-hangover.html
By: Thomas Madison
One of the problems that ails us is cheap offshore labor. I have been saying for a long time that a quick, win-win solution is import tariffs. I guess we didn’t learn this lesson from the Japanese model that was created 30 years ago, or the Korean model that followed. Those situations were identical to today’s phenomenon of cheap Chinese labor. Back in the day, the Japanese were killing us with cheap labor that was turning out quality cars and electronics, thus many American manufacturers couldn’t compete and went out of business or suffered greatly. As the situation evolved, Japan prospered at the expense of the United States, which gave Japan FREE access to our consumer market at no charge, Japan prospered, and the Japanese worker demanded a bigger slice of the pie, thus prospering themselves. A rising Japanese middle class enjoyed the American Dream, while many Americans joined the unemployment rolls. Fully evolved, the playing field is now somewhat leveled American manufacturers are again competitive with Japanese manufacturers.
Enter the Chinese. We didn’t learn our lesson from the Japanese, who we rebuilt after WWII and handed the golden goose (our HUMONGOUS, MONEY-SOAKED consumer market). I guess we figured we hadn’t been punished enough and decided to make the Chinese the newest beneficiary of American largesse. OK, so in another 20 years or so, after further draining the American quality of life, the playing field may be leveled again, the Chinese worker being the beneficiary, and struggling American manufacturers may be able to compete again. How many times do we need to be given this lesson before we get it? There are more third world countries waiting in the wings to replace China once we have transferred as much wealth as we can to the Chinese. Line up, guys, to enjoy the American Dream at the expense of Americans, whose own standard of living will continue to deteriorate as a result. Indonesia, Malaysia, southeast Asia, Africa, step up and take a swing at the American pinata.
It is soooooooo easy to reverse this tragedy. The most valuable thing in the world, in the history of this planet, is the American consumer market, and we have given it away FOR FREE time and time again. Why are we committing economic suicide? Why? We are willfully transferring our wealth to foreign countries. Import tariffs reverse this economic suicide IMMEDIATELY, American manufacturers become competitive again and we return to the standard of living we used to enjoy. It is so simple. Either that or I am crazy.
