Thursday, February 07, 2019
So called "free traders" are a joke. Yet, it dominates American economics. These people argue it is a high moral principle to eliminate any barrier to trade that might support the income of working class people, but suddenly get defensive when we talk about barriers that support the income of professionals and the wealthy. The ExportImport Bank is a way for the United States to subsidize its exports for Boeing, Caterpillar, and GE, who garner 90% of EIB loans. Yet the EIB is justified as a way to grow exports and small businesses. If the EIB were closed exports would drop 2-3%. It gets even more ridiculous with Sports Arenas, funded by taxpayers for the benefit of the team owner. All for a stadium which few people use or can afford to use.
A 10% tariff on imported steel is an outrage. In the same breath they condemn letted highly qualified foreign doctors from practicing in the United States. The same story applies to patent and copyright protection, which is also protectionism. This is exactly the treatment professional sports team owners enjoy as well. The U.S. treats countries which do not respect patents and copyrights as violators of free-trade.
The other twist is that Republicans in Congress refused to approve new members for the bank's board. This meant that the board lacked a quorum. And, without a quorum, the board could not approve loans of more than $10 million. This meant the bank was actually in the business of making loans to small and medium size businesses, rather than subsidizing Boeing and Caterpillar.
There are two lessons here: Free trade is a farce, yet Republicans actually did something good for a change. This from the same people hell bent on destroying the post office and public schools.
Admin's note: Participants in this discussion must follow the site's moderation policy. Profanity will be filtered. Abusive conduct is not allowed.