Ever since I first came across the American School (Economics)
I have been
hooked. It is what led me to the admiration of the great Alexander Hamilton. Did you know that between 1860 and 1930 the American School, well
Hamiltonian Economics, was the chief economic guide in this country? In that 70 years period we went from a small nation to a superpower producing
upwards of 42% of the entire worlds goods. Our economy was thriving, the Japanese in the 1880 (give or take a few years) sent high members of their
government here to study our businesses and learn how they became so infamous.
The visiting Japanese took home a copy of Alexander Hamilton's 'Report on
' to study it back home so that Japan could soon become a global manufacturer and competitor. German leader Otto van Bismarck also
had a copy and pursued policies in line with Hamilton Economics. And now much of China's policies towards business and manufacturing is in line with
Hamilton's 'Report on Manufacturers', actually I would not be surprised at all if a copy was sitting on Hu Jintao's desk.
Overall the American School believed in several key principles:
Tariffs used to:
• protect infant American industry for a short term until it could compete;
• raise revenue to pay the expenses of government;
• raise revenue to directly support manufacturing through bounties (subsidies)
Subsidies used to:
• encourage the spirit of enterprise, innovation, and invention within the nation;
• support the building of roads and canals to encourage internal trade;
• grow the infant United States into a manufacturing power independent of control by foreign powers through reliance on their goods for domestic and
especially defense supplies.
That is why it quite truly bothers me to my core that American policies are strictly in line with Free-trade and globalization. We used to care about
our country, our independence, our self-reliance, but now apparently it is a lot easier to send our businesses to China, take oil from Saudi Arabia,
and tax businesses at home to death to prop up a bureaucratic managerial state which is collapsing under the weight of immense debt, bloated welfare
state, and a military state dedicated to policing the world to defend the resources we foolishly rely on foreign nations to provide.
3/1/2011 by Misoir because: (no reason given)