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re: I'm at an intellectual crossroad (Free Trade)

Posted on 12/1/16 at 7:50 pm to
Posted by AggieDub14
Oil Baron
Member since Oct 2015
14624 posts
Posted on 12/1/16 at 7:50 pm to
I'm actually much more conservative than I let on. I just like playing devils advocate too much.

I'm one of those people that conservatives say I'm too liberal and liberals say I'm too conservative.
This post was edited on 12/1/16 at 7:53 pm
Posted by RoyalAir
Detroit
Member since Dec 2012
5886 posts
Posted on 12/1/16 at 7:56 pm to
quote:

And we all get a far cheaper cost of living in the process.


But cost is relative. Say I'm your neighbor and have a job making widgets for $15, and you can buy widgets in Wal-Mart for $12. When the company moves to China and sells widgets to you now for $7, I'm now unemployed, and can't afford widgets at any price.

You have your job now, yes, but my house is foreclosed and your home drops in value as a result.

You have to hope that your job doesn't outsource, putting you out of work like me. The value of your labor goes down, too, because higher unemployment in our town means more competition for your job, and your next raise evaporates.

$7 widgets have consequences.
Posted by the808bass
The Lou
Member since Oct 2012
111515 posts
Posted on 12/1/16 at 7:58 pm to
That's an incredibly oversimplified argument. If 2 M people consume 10 widgets each year and 100 people make widgets, what's the cost to society to keep widget prices high?
Posted by RoyalAir
Detroit
Member since Dec 2012
5886 posts
Posted on 12/1/16 at 8:08 pm to
Widget prices aren't high- they're at market value. By engaging in free trade with a non-equal labor state such as China (or a different tier nation, if you prefer that concept), widget prices then become unnaturally low.

And in the real world, it's not just widgets. It's steel, and tractors, and cars, and a nation's entire manufacturing capacity. The impact to society looks like Detroit, Cleveland, or Buffalo. It has consequences, and to say that unnaturally cheap goods are better for society is myopic to the long run.
Posted by deltaland
Member since Mar 2011
90583 posts
Posted on 12/1/16 at 8:08 pm to
Free trade and open borders is good in theory and the best system but it only works if all sides participate and nobody has a welfare system, corporate or individual.

Like communism, it sounds good in theory but is unrealistic because it defies human nature. A persons natural response is to try to attain as much power and wealth as they can, so that's why communism doesn't work.

Free trade doesn't work because people naturally don't react well to losing their job due to market forces. And other countries will never agree to even playing fields long term. Always seeking an advantage over the other.

Open borders don't work in the free movement of labor because generally people don't like it when their culture gets threatened by another. You can point to the diversity of America, but it has only worked with 1 dominant culture stifling the others. With white anglo Saxon culture influence diminishing, you see much more unrest and anger. It is only natural human response
Posted by kingbob
Sorrento, LA
Member since Nov 2010
67079 posts
Posted on 12/1/16 at 8:09 pm to
In the 19th century and prior, free trade worked well because of the relatively immobility of businesses. Every town needed certain businesses to survive, and without refrigeration or flight or fast ships, goods simply couldn't be moved across long distances fast enough to allow for enough outsourcing to deplete a nation of enough jobs for its people to work. Automation and transportation have now crossed that Rubicon. Goods can be made overseas and shipped to market far easier and faster than ever before. Automation also allows for fewer businesses to be needed in every town. There no longer has to be a butcher, a baker, a candlestick maker, a wagon maker, a barrel maker, an insurance salesman, a blacksmith, ect in every single town. You can have just one office in an entire nation and ship the product on demand. While this results in greatly reduced prices on manufactured goods, it also results in a massive loss of jobs. People without jobs don't have money to buy cheap goods and services.

However, we are often paralyzed by always having a relatively short view of the future. We only tend to think about trends in 1, 4, and 8 year windows. Free markets do amazing work, and they work faster worldwide than any other system, but they may take a while in your locality.

In reality, developing countries eventually develop. As they develop, their workers demand better wages and better working conditions. These increased wages result in their people demanding more goods and services. As peoples' lives become more comfortable, they demand more rights, better parks, better environmental protections. Over time, as those developing countries become developed, that developing process results in their competitive advantages waning as workers become more expensive. Labor intensive jobs leave, service industry jobs take their place, and a new country begins developing to satisfy the demands of the newly developed market. We are already seeing that process beginning to take hold in China as it increasingly becomes a larger and larger market for consumer goods and entertainment.

The beauty of a truly free market, free from the government speed bumps of incentives, regulations, barriers to entry, monopolies, taxes, welfare, ect is that it grows with the growth in population, and the population does not grow if the economy cannot handle said growth. Our governments have been incentivizing poor economic choices via their entitlement programs and incentivizing manufacturing of goods far away from their consumer markets via burdensome taxes on domestic industry. See, the whole model is flipped. Government shouldn't be subsidizing non-workers for having children, it should be punishing them, or doing nothing. It shouldn't be punishing domestic producers and rewarding outsourcers, it should be doing the opposite.

Our issues in this country, due to our major competitive advantages in labor efficiency and massive consumer markets, are not as far behind the developing world as most believe. The costs of shipping products from overseas accounts for much of the difference in labor cost. Where the real savings come from is in the tax and regulatory code. By passing the FAIR Tax Act and simplifying our regulations, we can close that gap resulting in more businesses reopening production here rather than relocating far away.

If government stops being a major roadblock to investment here, than the relatively free market will eventually result in a developed world with a massive skilled and educated middle class producing goods consumed and consumable by everyone all over the globe. We would truly be one global community where everyone is symbiotic yet independent. A collective of free individualists. A world where everyone has rights, liberties, and an honest wage for honest work, and where shortages are quickly rectified and pricing of commodities is fair. That is the libertarian long term plan for global unity.
Posted by the808bass
The Lou
Member since Oct 2012
111515 posts
Posted on 12/1/16 at 8:10 pm to
quote:

Widget prices aren't high- they're at market value. By engaging in free trade with a non-equal labor state such as China (or a different tier nation, if you prefer that concept), widget prices then become unnaturally low. And in the real world, it's not just widgets. It's steel, and tractors, and cars, and a nation's entire manufacturing capacity. The impact to society looks like Detroit, Cleveland, or Buffalo. It has consequences, and to say that unnaturally cheap goods are better for society is myopic to the long run.


Restating your poor argument with different parameters didn't help it.
Posted by RoyalAir
Detroit
Member since Dec 2012
5886 posts
Posted on 12/1/16 at 8:12 pm to
Then by all means, provide a counter argument.
Posted by buckeye_vol
Member since Jul 2014
35236 posts
Posted on 12/1/16 at 8:20 pm to
quote:

Well your point has nothing to do with my thread. I'm not interested in how Western European Culture integrated into America, I've already accepted it and understand it
But I think his examples highlight that some of our most irrational fears don't come to fruition. We have the benefit of hindsight, but it's a lesson that can't be overlooked.

And besides sharia-like, anti-wesfern Muslim cultures, which cultures have eroded our own?

And even then, some middle eastern cultures (Lebanese) are some of the most successful diasporas (good Freakonomics podcast on it).
Posted by AggieDub14
Oil Baron
Member since Oct 2015
14624 posts
Posted on 12/1/16 at 8:27 pm to
I agree with about 90% of what you said. And I applaud you for it.

My issues:

quote:

The beauty of a truly free market, free from the government speed bumps of incentives, regulations, barriers to entry, monopolies, taxes, welfare, ect is that it grows with the growth in population, and the population does not grow if the economy cannot handle said growth.


A total free market leads to monopolies over a long enough period of time. Look at the railroad companies in the early 20th century. I will consistently say that Teddy Roosevelt is the greatest president in modern history because he shut them down. He checked the Rockefeller family. He set a standard of "Look, if you want to be successful, I encourage it. But don't frick people over." Don't try and say the government is responsible for monopolies. Greedy individuals are responsible for monopolies.

quote:

Government shouldn't be subsidizing non-workers for having children, it should be punishing them, or doing nothing


Ideally yes. Ideally we would tell non-workers who have kids to frick off. The issue is, you are also telling their children to frick off. And they are children. Should we really feel okay with little kids and babies having shite lives because their parents fricked up? I feel like it isn't out of the question to make sure those little kids with crappy parents at least have the bare minimums to survive and get out of the hellhole that is their upbringing one day.

quote:

By passing the FAIR Tax Act and simplifying our regulations, we can close that gap resulting in more businesses reopening production here rather than relocating far away


I have been in favor of a fair tax for years, but my extremely liberal sister has pointed out many flaws in this that actually make a lot of sense. It is an idealist view. A fair tax would require everyone pay 25-30% sales tax to raise enough money to run the government. This would be great, because my income wouldn't be taxed. I would have the opportunity to save my money before the government took their cut. But I wouldn't spend as much, because the sales tax number is scary. This would cause my savings account to rise, but the economy would suffer because I am no longer buying as much.

You say a free market will bring about a form of prosperity. That could happen. It could also bring about a world completely controlled by big corporations. That is a scary place to live in, and much more likely if you ask me. I've considered myself a Libertarian for years, but I'm starting to realize that is only as an idealist. I realize that many libertarian ideals will never work in society. They will fail horribly. We need to find a middle ground that is good for the people.
Posted by buckeye_vol
Member since Jul 2014
35236 posts
Posted on 12/1/16 at 8:45 pm to
quote:

Don't try and say the government is responsible for monopolies. Greedy individuals are responsible for monopolies.
Well the government often doesn't help. The self-correcting nature of free-markets usually prevents this because it incentivizes innovation to undercut the monopoly.

In my opinion, the primary thing that can prevent that is a monopoly on the limited but necessary resources in that industry that can't be so easily created (utilities, natural resources, infrastructure for transportation, etc.). Sometimes the government is a necessary evil to limit this, but I think those situations are sometimes overstated.

On the other hand, the government causes a monopoly because of things like patents, which while understandable and even necessary, they seem to get quite ridiculous and overused (look at the Apple vs. Samsung legal battles). I think this issue is going to be more prominent given our focus on technology and other intellectually focused industries.
Posted by MrCarton
Paradise Valley, MT
Member since Dec 2009
20231 posts
Posted on 12/1/16 at 8:47 pm to
First, I agree 100% that western European culture has been mankind's crowning achievement thus far in our history. So nothing I am about to say should be construed to mean that I think that "all cultures and peoples are equal in quality". SJWs can call me a white nationalist all the want, in nearly every quantifiable metric the western white culture has dominated. That may change, for reasons that I suspect you already know, but for now it's fact.

quote:

With increased mobility of international workers and national entrepreneurs, the value of free trade diminishes as it erodes national cultures.



There are a number of factors that must be analyzed here. What is causing the increased mobility of these peoples, and why are they coming to America and western Europe?

Complicated. I have probably pounded my fist 100 times on here talking about the difference between immigration and refugees. Immigration is a key component of free trade theory and anarcho-capitalism. The process for immigration is not unlike the process of being an entrepreneur. It is high risk, and it favors the bold and intelligent. It also highly favors those with social skills and an ability to coalesce with cultures that might be on the surface very different. A prime example of people who have been generally successful in this way are the Jewish people of Europe and the Lebanese people of the Arab world. people from these cultures who migrate have extraordinarily high success rates in America and all over the world. A quick internet search reveals all the data one requires to prove this point. Immigrants are virtually sponsored in their endeavors by those with whom they do business in their new country. Had these connection not been possible, most Immigrants would not leave their current environment because to do so would be unnecessarily risky. In a freed economy, these people would face a real likelihood of extreme poverty. That does not mean that they will be parasites of the state in a real to life scenario such as we see today, though it is possible.

Immigrants are a far-cry from refugees. refugees need not possess any of the characteristics of an immigrant. They need only be affiliated with a specific religion, geographic area, ethnicity, political party etc. Their movement is low risk, either because it costs them nothing to move or they have virtually nothing to lose by doing so. They are usually unsuccessful in their home territory for reasons that may or may not be their fault. Nearly all of their movement and much of their lives in their new country is paid for by the current residents of that country. When refugees assimilate and adopt the basics of the culture they move to, it is the exception and not the norm. Most of all, refugees are not products of the free market. They are products of state policies.

what Vox Day and others like him are actually noting are very destructive and deliberate liberal and statist policies that are destroying the fabric of America. I don't mean that they are destroying the "whiteness" of America. I mean they are destroying the cultural glue of America. I can speculate as to why people like Soros want this to happen, but that isn't really the point. Vox Day is correct to say that we should be very concerned and vocal about this issue; but in my opinion this is the opposite of a "free-market" problem. It's a statism problem.

quote:

The brilliant economists that developed these theories were 100% correct, because, at the time, businesses and workers were fairly immobile and economies could develop to produce the most efficient goods while our Western Culture was simultaneously not weakened.


Obviously we are far more mobile today than ever before, but that mobility is relative to all the other advances in human kind. In the silk road days, the world benefited immensely from the movement of people from east to west and west to east, and they absolutely did move. On foot, by camel or horseback millions of people every year traveled thousands of miles to trade an interact. We can see the evidence of that in the cultural cross overs between Europe and Asia that still survive. In the days of these brilliant economists, the West had really begun its journey as the leading force in the world. That happened on the back of extensive oversea and overland trading with very different cultures. I can only imagine that in an era of kings, that foreigners weren't at the top of the list for receiving "royal" subsidies to live in their kingdoms, as the nature of being a king sort of lends itself to keeping ones own population satisfied. That of course is not the case today. In america the liberals want the foreigners to come in droves and become lifetime voters. All of this of course at the expense of producers who never had much use for these people.

quote:

If non-Western cultures didn't suck this would be less of a problem, but we're faced with the decision of having Americans potentially move to non-Western cultures and replacing them with foreigners from often inferior cultures or seeing American investors start their initiatives in other nations where economic development is then fostered.


Non-Western cultures don't suck. They just aren't as good as western culture. What a lot of people forget is that it wasn't too long ago that in Europe and America we held some of the same social norms that we are horrified to hear about today. Wedding at puberty, slavery (ok, that's all Im saying about it I swear), Child labor, extreme capitol punishment, conservative dress, Extreme religious rigor etc... I don't want to say that "we came through all that" because some aspects were necessary to the development of the west and some should certainly be preserved in the face of our current cultural onslaught. what brings nations out of that mess is prosperity. It doesn't matter what the quality of your culture is, it's almost always better in a prosperous state than it is in a statist and poverty stricken state.

As a person who sincerely believes that western culture is superior, I will tell you the only thing that I believe can save western culture is to spread that culture outward. Not in a Neo-con statist fashion, or a liberal world citizen fashion, but through being the example of free-trade for the world. We cannot out breed these other cultures, we cannot stop their desire to come get what we have for themselves, and we cannot close our borders and hope that we can survive and ultra-protectionist gameplan. Because we can't do that and maintain our standards of living or our western tendencies.

We have to stop intervening in other people's problems. We have to stop trying to "fix" old mistakes, only to make the same ones over and over. We have to develop a true respect for individual property rights and sovereignty. We have to do all of those things in hyper-drive like we have never done them before or these marxist influences on our society will kill us and the third world dregs will come in and feast on our remains. Making a world wide silk road is pretty much the only thing that will elevate these third world people to a level that isn't lethally poisonous to the west.

If we close ourselves off to the world to save our culture, then they will grow faster, we will grow slower and they will win anyway.

I don't know man. I hope that is convincing but I kinda think that I didn't really hit what you were looking for.
Posted by kingbob
Sorrento, LA
Member since Nov 2010
67079 posts
Posted on 12/1/16 at 8:49 pm to
quote:

A total free market leads to monopolies over a long enough period of time.


False. Monopolies cannot consist in a free market without government intervention. The railroad monopolies in the United States were brought about due to the Federal Government giving them favorable contracts so that they would invest in new railroad tracks to the West Coast, rather than waiting for it to become economically viable for railroad companies to do so on their own. They granted the railroads massive land-holdings, protected them from competition with huge regulatory hurdles for entry, and even made them virtually immune from law suits and state government action. That's right, railroads are one of the only entities on earth that can tell the government of a U.S. State to go pound sand. Most monopolies arise due to government action in one of a few ways:
1. A government granted geographic monopoly (typical of utilities)
2. Grandfather clauses in regulations which exempt currently operating businesses (protect them from competition via barriers to entry into the market)
3. Massive government contracts for services (literally picking a market winner by exclusively doing large volumes of business with it)
4. Targeted tax loopholes (often designed to only benefit one or one lass of business)
5. Patents (government protects an inventor's rights to be the sole provider of a given good or service for a set number of years, giving that inventor's company a huge head start on all of their potential competitors)

Monopolies cannot and do not persist absent government help.

quote:

Should we really feel okay with little kids and babies having shite lives because their parents fricked up?


Yes, because here's a little secret: most people care about kids. I know this seems counter-intuitive, but here me out. Most parents, with their backs against the wall, knowing that there is no one else to take care of their kid, will sack up and find a way. They will find a way to take care of their kid and become a more productive member of society in the process. For those who's parents are actually verifiably shitty and refuse to get their act together, we have private charities who will never allow them to starve to death. Human beings will protect children. They will go to the ends of the earth to make sure that they are all fed and have shelter. Cutting off welfare to these people, in the end, only punishes the parents. It may take time, but the children will get the help they need and be better for it.

quote:

I have been in favor of a fair tax for years, but my extremely liberal sister has pointed out many flaws in this that actually make a lot of sense. It is an idealist view. A fair tax would require everyone pay 25-30% sales tax to raise enough money to run the government. This would be great, because my income wouldn't be taxed. I would have the opportunity to save my money before the government took their cut. But I wouldn't spend as much, because the sales tax number is scary. This would cause my savings account to rise, but the economy would suffer because I am no longer buying as much.


I understand your concerns, and I have the same. However, when doing some research on the issue, I stumbled across multiple studies (which I wish I'd bookmarked just for linking to threads like these) that showed that for every product on a shelf, the taxes you don't see make up between 20 and 25% of the sticker price on any given item. The FAIR Tax just takes all of those taxes and puts them in one place, collected in the most efficient manner possible. Not only are all of the taxes centralized in the same transaction, it frees everyone from the countless hours spent by every American taxpayer and business trying to file their taxes, and the thousands upon thousands of IRS employees required to recieve these filings and adjudicate fraud. This is a huge loss in efficiency for our entire economy that can be completely eliminated via the FAIR Tax. Based on these studies, between the increases in income due to the lack of payroll taxes and income taxes and the reduction in all of those taxes the corporation is paying that go into the price of every single item on the shelf, they more than even out in favor of the consumer.

quote:

t could also bring about a world completely controlled by big corporations. That is a scary place to live in, and much more likely if you ask me.


I hate to break it to you, but we already live in that world. We currently inhabit a crony capitalist world where government colludes with the major corporations to control your every economic decision. All of your communications are handled by like 3 companies, all your entertainment, by about 4. Your food is primarily sold by about 6 companies. All of your consumer products in your home, only around a dozen parent companies make nearly everything you use. There's only about a dozen automakers to choose from. There's only 4 common carrier mail services for most parcels. There's a little more diversity in clothing, but you get the idea. If you hate living in a world controlled by corporations, you must hate living.

A libertarian world doesn't result in more corporate power, but less. It is government intrusion into the market place through regulations that create the massive barriers to entry that protect corporations from competition. A libertarian style government would have far fewer barriers, meaning more firms, more competition, and less leverage by any individual company.
Posted by MrCarton
Paradise Valley, MT
Member since Dec 2009
20231 posts
Posted on 12/1/16 at 8:50 pm to
The government is responsible for monopolies.

Pretty decent article.
Posted by MrCarton
Paradise Valley, MT
Member since Dec 2009
20231 posts
Posted on 12/1/16 at 8:53 pm to
Mother Effing UPVOTE!
Posted by AggieDub14
Oil Baron
Member since Oct 2015
14624 posts
Posted on 12/1/16 at 8:58 pm to
I hate the concept of intellectual property, but without it the little guy can never get ahead. Big business will always steal your idea without a patent.

How exactly does the free market naturally correct monopolies? Teddy Roosevelt isn't called the trust buster for nothing. He corrected the monopolies that the free market of the 19th century allowed to flourish.
This post was edited on 12/1/16 at 8:59 pm
Posted by kingbob
Sorrento, LA
Member since Nov 2010
67079 posts
Posted on 12/1/16 at 9:00 pm to
There are good immigrants and there are bad immigrants. The difference lies in the reasons why immigrants immigrate in the first place.

There are typically 3 kinds of immigrants:
1. "American Dreamers": they come because they value America's values. They want to be Americans and enjoy the freedoms and economic mobility Americans enjoy. They want to pay taxes and assimilate.

2. Economic immigrants: They are here purely for the economic opportunities. Often times, they just want to make their money here so they can return to their home countries because their home countries lack jobs. These people rarely assimilate any more than their jobs require them to. Most would rather not become citizens because they hope to return home once they have made enough money.

3. Welfare immigrants: these are the worst immigrants. They only come to America to take advantage of its social services. They come so that their children can come to school, so that they can get free health care at ER's, and so that they can receive entitlement benefits. These people rarely have any love for American values and see little reason to assimilate.

Our entitlement system attracts the worst kinds of immigrants that are purely a drain on our nation. At the same time, it discourages our unskilled labor force from going out and taking those low pay unskilled labor jobs. Since those workers would rather be on welfare, economic immigrants have to come to fill the gaps. To make matters worse, though, we have minimum wage laws. Meaning that those citizens who would do the work for minimum wage cannot compete with the illegal immigrants who would do the work for less than minimum wage.

Immigration is a difficult subject because in order to solve it, we have to solve the issues attracting the ones who do not contribute from coming in the first place.
Posted by Aubie Spr96
lolwut?
Member since Dec 2009
41111 posts
Posted on 12/1/16 at 9:01 pm to
Well stated Bob.
Posted by buckeye_vol
Member since Jul 2014
35236 posts
Posted on 12/1/16 at 9:01 pm to
quote:

I hate the concept of intellectual property, but without it the little guy can never get ahead. Big business will always steal your idea without a patent.
I'm not sure this occurs as frequently as most think, but even then, big business often gets the property anyways.

But even if it's a necessary evil to protect it, government still finds ways to mess it up (overuse, allows for hoarding of property often without any innovation from it).
Posted by G The Tiger Fan
Member since Apr 2015
103651 posts
Posted on 12/1/16 at 9:04 pm to
Yeah. It's a tough one. Of course, in a perfect world, it would be idiotic to argue against free trade. The best way to get avoid r-selected cultures messing up everything is private enterprise and let people trade and interact voluntarily only with those who they want to interact with. The other cultures would eventually collapse because they cannot survive on their own. However, there is a statist government that pollutes everything and, until you can overthrow it, it's probably just best to hope that those who are elected will force us to interact with cultures that we do not wish to interact with as little as possible. I guess some people would call it a hypocritical position but that's the way it is, I guess.
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