What the world needs now in addition to love is wisdom.
Saturday, August 20, 2016
King Solomon, Donald Trump, Fair Trade Post Seven (Repost)
Are we wise or skilled enough to discern how the relationship of Value Added, and Made in America, adds real wealth in our nation?
In my previous post I stated I will explore what the term Value Added means in American Manufacturing. In the sources below, I will present the Heritage Foundation pro free trade economist statements and views that free trade adds jobs in the USA.
If you see the extortion of the poor, or the perversion of justice and fairness in the government, do not be astonished by the matter. For the high official is watched by a higher official, and there are higher ones over them. (Ecclesiastes 5:8)
I will explain below my interpretation of how his ancient statement relates to the subject of this post.
What is Made in America?
If you examine the value added portion of what is made in America, that represents American jobs portion of American made products or the percentage which adds to the GDP, Gross Domestic Products made in America. The GDP is a measurement of the wealth produced in a nation from the products made in the nation. HERE
How Imports Support US Jobs
If you read this Heritage Research Report, you may be convinced, as I believe our Congress and many pro free trade supporters have been convinced, to favor and support free trade. It makes a statement that imbalanced trade should not be used as a valid measurement to discern the benefits vrs the detriments of imported products. HERE
Questions to Discern
1.Mike Huckabee made this statement. “If it’s not fair trade,” he said, “it’s not free trade.” What he discerned is explained HERE.
2.The Heritage report does not point out the wage differences of the types of jobs imports create in the USA. Most jobs like retail clerks that sell or stock shelves with imported products do not make a livable wage in the USA same as manufacturing jobs pay. If you want to know what is considered a livable wage, check out HERE
3.Goods made in America add jobs creation in America. For example, 87 percent of apparel made in America is produced from American made products. However, only seven percent of apparel made in America apparel is sold in America. If more Made in America apparel was sold in America, more fabric would be produced in America and the result would be to create more jobs in America.
4.I have explained in previous posts how dollars not returned to the US in purchases of American products instead of American assets could create job opportunity rather than result in lost opportunity.
5.Many conservative Presidential Candidates and Congressman propose lowering Corporate Taxes to lower the price of American goods and this supposedly will increase exports and balance trade. This is a dream in my opinion based on two things. The reality of currency manipulation by horse trader nations and the fact that the cost of living in the USA is higher than most nations. US worker’s wages will never be able to match foreign labor wages. Lowering Corporate taxes also will not help reduce the present twenty-million-dollar National Debt either.
6.Which nation would lose out the better deal in the event of a trade war? My opinion is it will not be the USA because for the most part, the USA is basically the most self-sufficient and also the largest consumer of products in the world. Trump as a skilled negotiator knows how to make better trade deals based on our strengths of our nation,
The Heritage Foundation
If you check into who contributes to fund the Heritage Foundation, you will understand that the funders are the ones who profit the most from trade agreements. Think about that in relation to the King Solomon statement I presented in this post. In other words, the higher officials are the ones who profit the most, not the ones who lost their livable wage jobs because of unfair and unbalanced trade.
This other King Solomon proverb relates to what I just stated.
Take out the dross (propaganda) from the silver (Heritage Report), and there comes out a vessel for the smith (US workers). (Proverb 25:4)
In My Next Post.
I will explore how to rebalance trade in reply to the questions posted by the skeptical bloggers I mentioned in Post One of this series. Namely, how Donald Trump’s,Warren Buffett, and/or my proposal how to implement a more balanced fairness in trade to benefit American workers.