There is so much talk today about the rise of China, their economy prospering unlike those here in the Western world. With the fear that soon China
will overtake America as the world’s largest economy, but why is that? There are so many reasons why China will overtake the US and probably
becoming the next superpower. Yet many people refuse to open their eyes to the exact reason why this is happening.
No it doesn’t have to happen, ignore those who claim it does. Ignore those who want to mislead you into believing this is a natural cycle in world
events. Ignore those who want to convince that continuing our current policies here in America is good for us. If these policies were so good for us
why are we in such a crippling recession, unemployment at 9.4% (disputable), and our trade is very weak.
Many will try and teach you that ‘Free-Trade’ will save you, let free-trade be the savior of America. Accept it with open arms! Remember it’s
got the word Free
in it, so obviously it’s a good thing right? How could freedom possibly be bad? Gee I don’t have any idea why
-Trade could be bad…
Well let us just take a short trip down history lane. Schools are still teaching American history, right? Oh well who needs history anyways… Back
to the subject at hand, in American history you will understand that at the beginning of this young Republic we needed a way to build up our
businesses and manufacturing base.
Across the Atlantic sat England, a glorious and powerful empire that was the hub of trade throughout the world. We had to find a way to compete with
glorious England. So our founders tapped into the historical economic system of mercantilism but they realized, as anyone with economic sense would,
mercantilism alone cannot support a nation and thus we had to add Liassez-faire capitalism here at home.
Quickly American businesses sprung up all across this great land, finally having a seat at the table with such countries as France and England. At
this time England was pursuing a policy known as Free-Trade and they were trading far more than little ‘ol America. So we had to find a way to
compete which we did, we slapped on tariffs on all imports of goods. This was our way to build up American trade, business, and economy while at the
same time bring in revenue to our federal government without taxing the people.
We witnessed one of the greatest expansion in the history of the world occur in our nation during the 19th century. Throughout the entire century we
grew from a small and fragile nation into a mighty economic power, beating that of England. But throughout that century England embarked on a
different course, they were a nation of free-traders, goods moved freely through borders and they too had a growing economy.
But by the middle of the 19th century we were there with them and finally surpassed them, rising from this miniscule nation of farmers and small
traders to a nation with a mighty manufacturing base, vast trade, enormous population, and a strong sense of entrepreneurship and patriotism.
So how did this little nation in less than 70 years surpass a mighty nation such as England? Well we did that through our form of trade. While
England was trading goods for free we set our trade so that our nation benefitted. Did this cause prices to be higher here at home than they would
have been over in England? The answer is yes. We may not have been able to be major consumers like we are today but we also weren’t without jobs
like we are today. Americans had jobs, a relatively good income, and an economy much stronger than it is today.
What does China have to do with this? Well China, unlike the US, actually pursues a strong import tariff on many goods. Do they have a devalued
currency? Well yes of course! But how can we possibly blame our troubles of China? Should we actually be attacking China for our stupidity and not
being able to manage our own trade correctly?
China doesn’t have free-trade, we do, so we send our businesses to China but not our products. China actually encourages businesses to relocate
there yet we tax them, regulate them, and do not protect them at all. Who do you, in your right mind, think is the smart one in this argument? Do you
think China is smart or the United States?
It appears to me that the Chinese leaders have been reading a little too much into the 19th century American Presidents, Congressman, and economic
policies. *Who let China get hold of the ‘Report on Manufacturers’?*
To me it looks like China is the smart ones here. The Chinese have woken up and seen what we did in our past to out-compete England and become the
world’s largest economy and they are doing the same. We have become the new England and China has become the new America. Soon they shall surpass us
while we just sit around diddling our thumbs and crying about how great we once were.
Don’t hate the player, hate the game!
If you don’t like what I said, that’ tough. If we have good reason to believe free-trade is a better alternative than please, enlighten us. But
right now it does not in any way appear to me that free-trade is the right idea. Not unless we are planned to force every country to abolish tariffs.
But China would be foolish to go for free-trade, especially after seeing what it has done to us here in America. Why would China embark on free-trade
and lose their jobs to India?
Hey America, you listening? You still want that whole ‘free-trade’ thing that has been pushed by all the international bankers? Our businesses
here in this country use to be glad that we had import tariffs so that they had the upper hand. So why are they now set on going over to China? Well
they lost the upper hand here but Chinese are more than willing to give them the upper hand over there.
This is a good read to if you are interested: Link
edit on 1/27/2011 by
Misoir because: (no reason given)