When will the Republicans and the conservatives ever learn that there is only one situation where a totally "free market" can work and flourish, and that the US and the world are well past being able to fit into that kind of "free market"scenario.
Here is a story of how a "free market" is supposed to work and an example of today's global reality:
Living in the Nations of "Freedom" or in "New Reality"
Lets say that you live in the country of "Freedom" , where there is a big business in building tractors. In fact, there are 10 tractor manufacturing companies, all with large tractor factories. Working in these factories are many, happy, well paid union workers with medical coverage and even a comprehensive retirement plan.
Now, your country of "Freedom" is a real "free market" country and all 10 of the tractor manufacturers are good competitors in selling their tractors in "Freedom" as well as in other "free market" countries. All of these tractor companies compete with each other on a level playing field of competition. Under these conditions, the consumers can purchase whichever tractor they desire based on the tractor's features, payment terms, sizes, colors and whatever options they need in order to do the job. All of these tractors sell for similar prices which will give all the factories a reasonable level of profit. The tractors can also be exported for sales in other countries, especially to those countries that do not have their own tractor factories.
All is well with the world in "Freedom". Everyone is happy, making tractors, making profit and earning good wages. This is an example of a truly "free market" way of doing business and it all sounds very wonderful. This is also the only way that a true "free market" can work.
Unfortunately, it's not the way the world works.
In the real world, let's say there's another country named "New Reality", and they have also decide to start opening their own tractor factories. This country's factories eventually build tractors that are just as good as the "free market" country's tractors. Also, in this country, the tractor worker's wages are only 1/4 of those in the "free market" country and there are no medical or retirement programs offered by the factory management. Instead, the employee benefits are provided by the government and the factory also receives a government subsidy and tax relief for employing the local residents. Due to these advantages in labor costs and government support, the tractors from "New Reality" are much cheaper to manufacture than those from "Freedom".
In addition, when a tractor manufacturer in "Freedom" wants to ship a tractor to sell in "New Reality", "New Reality" places a 20% duty on all the imported tractors and on any other imported products that are also manufactured in the country of "New Reality".
Because you live in a "free market" country, the country called "New Reality" is also allowed to ship their tractors, "duty free", to "Freedom", and to start selling and competing with "Freedom's" tractor manufacturers. Since there is no duty placed on the tractors from "New Reality", and due to the difference in labor costs and with their government's support, the tractors from "New Reality" cost much less to "Freedom's consumers" than those tractors built in "Freedom".
Eventually, the tractors built in "Freedom" stop selling and the "New Reality" tractors take over the local markets. The "Freedom" manufacturers were only able to be competitive in the early years with "New Reality" by laying-off workers and moving their manufacturing to other countries with manufacturing conditions similar to those in "New Reality".
Unfortunately, the "New Reality" manufacturers eventually grew to where they could buy-out the "Freedom" tractor manufacturers. They then either laid-off the remaining union employees or they closed the old factory and moved the manufacturing off-shore. If they kept the old factory working, they ran the plant by hiring non-union workers with lower hourly wages.
Is this starting to sound familiar?
With the exception of when the "free market" Republicans have been in power in the White House and in control of the US government, going back to our founding fathers, the US has never been a "free market" country. In fact, in all of the global history of world governments, those so called, "free market governments" have never been successful nor did they even survive. Markets with zero regulation or oversight have always failed before, and they will always fail in the future. History has proven time and time again that a "free market concept can only work when there is an absolute level playing field for all the players".
Even the first US Treasury Secretary, Alexander Hamilton, understood well the need for some level of regulation. Because of that understanding, Hamilton established the foundation of "checks and balances" within the US Treasury that pointed this Republic in the proper direction from the very beginning. In addition, all of America's founders understood human nature and the need for different levels of "checks and balances". And, judging by the lack of those "checks" and proper oversight of the last 12 years of a Republican Congress and the 7+ years of a Republican Executive Branch, we can all see the poor results of this lack of what our forefathers had originally provided for all of us.
Yes, it is time for this country to open its eyes and see that it is time for a change to a government that takes responsibility for its actions, and the time is now, not later. Are the Democrats the answer? All we can truthfully say is that historically, the Democrats have always been pretty good at cleaning up the conservative's messes, such as the Stock Market Crash of 1928 and the Great Depression of the 1930's. However, after almost 30 years of "Reaganomics, or trickle-down economics" plus a not-so-bright, "war-mongering" George W. Bush, this time it may be all too far gone to fix.
0 comments:
Post a Comment