This is just a quick note on a previous blog where I reiterated the absolute need to maintain a free global trade system if we are to get out of our economic depression in a timely fashion.
I specifically cited the unions in the United States as possible deterrents to helping our economy get better because one of their goals is to protect jobs in the U.S. by limiting or canceling free trade agreements like NAFTA (North American Free Trade Agreement).
They intend to do that with ridiculous requirements that all NAFTA workers be unionized and get wages similar to what U.S. workers get currently. Obviously, those requirements just negate the agreement and prevent free trading to go on even though NAFTA has been proven to be a huge boon to U.S. trade interests.
Today’s Wall Street Journal reports that Trade has fallen worldwide by large percentages. In the U.S. imports / exports are down 18% with imports sliding more than exports. The fact that our exports fell only slightly is a good sign that our goods are still valued and wanted by importing countries. The fact that our imports have fallen dramatically means that we, as consumers, are not buying as much stuff as we did in the past. Eventually, those imports will be offered at lower prices, which is good for our economy.
The fact that this is a global phenomenon with certain countries like Japan suffering much bigger losses is not a good sign since it signals that demand is falling worldwide and that can bring global trade to a standstill, which is what happened in the 1930s, which led to a global depression.
Another report suggested that countries may be slowly playing the “protection” game by making it harder and harder for imports to get in and compete with domestically produced products. If this is in any way true, then this could turn into an epidemic which would make our global economic situation much worst than it has to be. If our unions see other countries make moves to “protect” their domestic manufacturing, they will demand the same from our government and then they will have good reason to do so.
The is an organization (WTO) World Trade Organization that is suppose to police global trade to make sure there is no violations of the free trade agreement. I don’t know how strong the WTO is or if it can really control what individual countries do with their trade regulations but I know this is raising a red flag we should all be aware of.
Since over 50% of my business is in export, I worry a lot. Lets see what happens next…
I specifically cited the unions in the United States as possible deterrents to helping our economy get better because one of their goals is to protect jobs in the U.S. by limiting or canceling free trade agreements like NAFTA (North American Free Trade Agreement).
They intend to do that with ridiculous requirements that all NAFTA workers be unionized and get wages similar to what U.S. workers get currently. Obviously, those requirements just negate the agreement and prevent free trading to go on even though NAFTA has been proven to be a huge boon to U.S. trade interests.
Today’s Wall Street Journal reports that Trade has fallen worldwide by large percentages. In the U.S. imports / exports are down 18% with imports sliding more than exports. The fact that our exports fell only slightly is a good sign that our goods are still valued and wanted by importing countries. The fact that our imports have fallen dramatically means that we, as consumers, are not buying as much stuff as we did in the past. Eventually, those imports will be offered at lower prices, which is good for our economy.
The fact that this is a global phenomenon with certain countries like Japan suffering much bigger losses is not a good sign since it signals that demand is falling worldwide and that can bring global trade to a standstill, which is what happened in the 1930s, which led to a global depression.
Another report suggested that countries may be slowly playing the “protection” game by making it harder and harder for imports to get in and compete with domestically produced products. If this is in any way true, then this could turn into an epidemic which would make our global economic situation much worst than it has to be. If our unions see other countries make moves to “protect” their domestic manufacturing, they will demand the same from our government and then they will have good reason to do so.
The is an organization (WTO) World Trade Organization that is suppose to police global trade to make sure there is no violations of the free trade agreement. I don’t know how strong the WTO is or if it can really control what individual countries do with their trade regulations but I know this is raising a red flag we should all be aware of.
Since over 50% of my business is in export, I worry a lot. Lets see what happens next…
No comments:
Post a Comment