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 Richmans' Trade and Taxes Blog

Mercantilism eats Free Trade
Howard Richman, 6/27/2012

Brian O'Shaghnesssy, chairman of Revere Copper Products, pointed out in a June 16 commentary (Mercantilism eats Free Trade) that the United States is losing jobs because of our failure to oppose mercantilism. He knows what he is talking about, because he knows what is happening in the business world. For example, he writes:

Revere ships its coils of copper and brass to other manufacturing companies largely in North America. Since the year 2000, more than 30% of the facilities that Revere shipped product to have shut down and moved offshore, mostly to China.

In the last ten years, multinationals have removed 2.9 million jobs from the U.S. economy. During that same time they added 2.4 million jobs in other countries like China ­ because of governments that provide low cost loans, low cost electricity, grants, tax breaks, and duty exemptions. These countries also provide the benefit of VAT taxes and currency manipulation.

Today, China buys trees from South America, ships them to a paper plant in Shanghai, produces the paper, and ships the paper to Chicago for less than a paper mill in Wisconsin using trees grown in Wisconsin! This doesn’t make sense until you understand the impact that subsidies, VAT taxes and currency manipulation have.

Until the United States finally opposes mercantilism by requiring balanced trade, countries like China will continue to steal our manufacturing jobs and our children's economic future. He points out:

China has 100 million manufacturing jobs. If we brought only 10% of those jobs back to the United States, our unemployment rate would be 2%! Thinking the problem is computers is really missing the boat.

The country with the economic system that is most mercantile is China. Today most countries practice some form of mercantilism. Mercantilism eats Free Trade and takes away jobs.

Businessmen like O'Shaughnessy know what is happening in the world economy. It is time that we started to listen to them!

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Comment by publications and membership, 3/17/2013:

I like this system. What can you tell me about publications and membership? I would be interested in this area especially as it is closely linked to education and personal development.

Comment by Walentyasa, 3/30/2013:

High frequency resolution and extension is not good, but this is not the most important... Go across the road is absolutely safe, after the horn and the sound of the engine will stimulate your nerve, every newspaper subway station will be broken into the ear is complete, there was no sound quality and the sound field can talk.

Comment by Marina, 4/31/2013:

I understand the sentiments and views presented here. I mean, it's really happening everywhere. The products that should have been manufactured in one state is bought by another country and resold to them. Click to read more information.  

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  • [An] extensive argument for balanced trade, and a program to achieve balanced trade is presented in Trading Away Our Future, by Raymond Richman, Howard Richman and Jesse Richman. “A minimum standard for ensuring that trade does benefit all is that trade should be relatively in balance.” [Balanced Trade entry]

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  • [Trading Away Our Future] Examines the costs and benefits of U.S. trade and tax policies. Discusses why trade deficits matter; root of the trade deficit; the “ostrich” and “eagles” attitudes; how to balance trade; taxation of capital gains; the real estate tax; the corporate income tax; solving the low savings problem; how to protect one’s assets; and a program for a strong America....

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  • In Trading Away Our Future   Richman ... advocates the immediate adoption of a set of public policy proposal designed to reduce the trade deficit and increase domestic savings.... the set of public policy proposals is a wake-up call... [February 17, 2009 review by T.H. Cate]