What the world needs now in addition to love is wisdom.
Saturday, March 5, 2016
King Solomon, Trump, Delta, Fair Trade Post Twelve
What is the main question and argument supporters of free trade ask?
In my previous post I stated I would explore the main argument of free trade supporters and the delta math point.
“Exactly how is the economy harmed by US persons being able to buy goods less expensively?”
There is a delta point in math to determine what is the best value to both the US buyers and his or her’s nation.
Definition of Delta Math Point in the Context of this Post
What does delta math mean?
Uppercase delta has two different mathematical meanings. Both meanings being with the letter D just like the Greek letter. Difference is the most common meaning of the uppercase delta. It is simply the difference or change in a certain quantity.
in other words, millions of people have lost their livable wage jobs and opportunities for livable wage jobs because an imported manufactured product can be purchased for less money because of lower foreign worker wages and costs of living than in the USA. The result is millions of US worker’s wages are being lowered to such a degree that the government now has to subsidize millions of workers with food stamps, rent subsidies, etc. in order to prevent the workers for starving or being evicted from homes to survive.
What then is the delta math point of value for the nation of lower price manufactured import product versus a US worker earning a livable wage that would allow him or her to be able to afford to pay a higher price for a domestic manufactured product?
In order to answer this question, we must first understand comparative value and how lower manufacturing production costs come about. That leads to two questions.
1.What is the comparative value of the imported manufactured products being purchased by US buyers in comparison to the economic welfare of the nation?
2.Are the imported products worth the value of selling out our nations assets and future of their children and grandchildren for the imported products?
I surmised a conversation in my novel of how King Solomon answered a question of the Queen of Sheba about of what I am suggesting Congress should do about the problem of unbalanced trade and Warren Buffet’s advice.
“Solomon, I noticed you studied the writings closely before you solved the riddle. Why did you do that?”
“We have a saying. Sometimes you must gaze upon details for a time in order to better comprehend a problem.” I replied.
“We also have a saying. Gaze not overmuch, and let thy vision be dimmed. It seems we have two contradictory sayings.”
“I do not believe so. My saying means sometimes we need to study the details of a problem closely in order to find a solution. Your saying states that if you look at a problem too closely for too long, you may become distracted in meaningless details and fail to comprehend what is most important.” I replied.
What is My Point
It is that supporters of the theories of free unrestricted trade, even when the economic statistics clearly show the detriments of unbalanced trade, are perhaps distracted in meaningless theories and the end result they have lost sight of what is most important to our nation.
In My Opinion
I do not have the mathematical skills, resources, or timeto calculate the delta math point. What I do discern from the statistics since 1983 NAFTA agreement which clearly point out the continued downward trend in wages of US workers, and the increased number of people being reported qualified for government subsidies.
In other words, the free trade negotiations were not the best value deal for millions of American workers. Not that all free trade has not benefited Americans to some degree from comparative value of food, or energy, or in some instances driven manufactures to improve quality of some products. What I discern that to the degree of free, but not fair trade, for manufactured products, has resulted in long term harmful effects for both US workers and our nation.
In MY Next Post
I will explore comparative value, production costs, and what I consider to be the repeat folly of how the current crop of native Americans, who twp hundred years later are now trading away our nation for wampum.