For a generation, politicians so stupid you could swear they were bought and paid for by foreign governments spoke with reverent eloquence of unilateral free trade being the American way, of being the golden path of true Conservatism.
The facts on the ground however, for a generation, have been far different than the professorial rhetoric of the sanctimonious right. China, not the United States, the protectionist, not the “free” trader, has experienced, by far and away, the most dynamic economic growth.
Finally, from border walls, to national identities, to trade barriers, the United States and China are speaking the same language. True free markets can only exist when there is freedom and when traders are all dedicated to their own self-interest. Competition generates economic efficiency, not absurd positions such as “trade deficits help us grow.” Finally, America’s trade policy can do what all trade policy should do: produce economic benefits for everyone involved.
Under the pitiless stare of President Trump, the “conservative” propaganda about the benefits of suicide trade pacts has vanished like smoke in the wind. This is because this logic was always smoke and mirrors. It never made sense. The economic history of the United States is the modern example of a free market in action. We began as a nation, using tariffs to generate trade policies in our own self-interest. We connected our free trade area with a common government based on freedom of religion, association, and self-government. When we applied these principles we were China. We outgrew the world.
For a generation China has had no real trading partner in the United States, for how can anyone negotiate with mad men? As a result of our generational no-sanity-negotiations against ourselves, we have developed trade imbalances with China. The long-term prosperity of both nations will be served by correcting these imbalances by both sides applying enlightened self-interest.
Having finally left the maniacs in our rear view mirror, China and the United States can begin the introspection that makes stronger, economically competitive nations. For instance, China can begin asking itself why its entire economy is based on exports. The answer is, of course, they are suppressing their own labor force. Because Chinese labor is not paid properly, they cannot generate enough internal demand to drive its economic growth. China’s “cheap labor” has been exploited by the western international and multinational conglomerates for a generation. These corporations are watching their stocks tank. Good! It’s about time.
Now that the absurd arguments about unilateral free trade have become the laughing-stock they should be, the multinationals’ paid news hacks have already begun to raise the specter of a bond war. Now that these corporations are desperate, they are willing to find the truth of our nation’s central economic flaw. Indeed, a bond war with United State might well offset the trade war with China that the United States must, by all logic, dominate.
Yes, the United States should worry about this ghost of our long dead conscience. We are twenty trillion
dollars in debt with no end in sight. When the United States was China and used tariffs to generate trade for its own self-interest, she had almost no peacetime debt and there was no federal reserve bank. America is not alone in its insolvency though. While our national debt is an absurd 105% of our GDP, China’s is 260%. Waging a bond war is far bigger trouble for both nations than is a trade war. Perhaps a fierce competition between these trade rivals will inspire both nations to seek the health of their own houses by paying their debts.