Get Out of Iraq and Afghanistan and Into the Trade War
Thursday, November 12, 2009
By Sen. Fritz Hollings
The Huffington Post
I'm frustrated. Everyone is talking about the loss of jobs from the recession and no one pays attention to the loss of jobs from off-shoring. Everyone's attention is directed to the Iraq War and the Afghan War and no one pays attention to the Trade War.
After World War II, Japan launched a Trade War for market share by closing its domestic market, subsidizing its manufacture, selling its export at or near cost, and making up the profit in its closed market. Thus, Toyota is Number 1 while GM is bankrupt.
In 1960, I was drafted as a witness in the Trade War in 1960 to testify on behalf of the northern and southern textile industries before the old United States Tariff Commission. I attested to Japan's dumping textile imports at less than cost, costing us jobs. This job loss has continued for fifty years, not only in textiles, but in shoes, electronics, radios, TVs, watches, computers, automobiles, advanced technology, and now research.
Off-shoring, described by Corporate America as downsizing, began in the early eighties and hemorrhaged under President Clinton with NAFTA with Mexico and Permanent Normal Trade Relations with China. The United States has lost a third of its manufacturing jobs in the last ten years. In February 2007, the Princeton economist, Alan Blinder, estimated that in ten years we would lose thirty to forty million jobs to off-shoring. My point is that we have lost and continue to lose far more jobs in the Trade War rather than the recession. And everyone is fixed on creating jobs with stimulation, but no one wants to plug the hole in the bottom of the economy boat caused by the Trade War....(Remainder.)
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