Free trade is the principle that dictates the absence of
tariffs on goods sold or bought in places other than our own nation. The
thought behind this principle is that tariffs only add to the cost of the products
and thus impoverishes the buyers. That is the primary issue at hand.
But there are more thoughts related to the principle of free
trade. Here’s one: the money saved by not paying tariffs allows more disposable
income to be spent buying yet more goods either at home or from foreign
providers.
Here’s another thought: free trade encourages foreign buyers
to acquire our goods and services and boosts our employment opportunities at
home. After all they are earning dollars selling to us so they now have dollars available to buy from us.
Another: cheaper goods from foreign lands may compete successfully
for our own goods and cause our industries to slump or fail. If that is true,
then investment dollars in the old businesses are now available to be spent
building new industries not yet in existence. We also have fresh investment
dollars to research and develop new technologies, products and services. These
unique new items are now highly competitive on the world stage of commerce.
Of course an argument providing caution to the latter
paragraph is this: American workers will be displaced from their jobs as
foreign competition takes their markets from them. This displacement of our
workers is true. Unemployment and underemployment will result from free trade as foreign competition beats American pricing. And it will, at least for a
period of time. It is inevitable.
But the same can be true of all change in the marketplace.
Buggy whips became unnecessary as automobiles replaced buggies. Clotheslines
were replaced by automatic clothes dryers. Typewriters were replaced by
computers. Pay phones were replaced by omnipresence of cell phones. And the
list goes on.
The period of displacement will vary as captains of industry
decide where to place their investment dollars on the next new thing.
Entrepreneurs will play a major role as they spot new opportunities and
make them happen. Industry will soon follow their lead. Smaller organizations
tend to think more clearly on new trends and new inventions. It takes a
while for the new to replace the old and fire up new job creation. But it will happen. And does.
Robotics in manufacturing is doing that now. So are
technologies revolutionizing processes and products throughout all that they
touch.
The role of education is not so much what we learn to make a
living – vocational skill sets – but how we learn so we can adapt to all
changes we encounter throughout life. So education will change as well.
Three D printing is changing manufacturing, and yes there is
now a 4-D printer in development. And what about 5-D printing? Don’t ask; the
mind blurs!
The new beckons our creativity and genius to action. It is
not all about consumption or production. It is not all about money, either, or
wealth of things. More and more life is about wealth of thought and feeling and
simpler things. Relationships with others is one example. Health is another.
Culture and art is yet another.
We are living this life for what reason? We are tasking our
daily routines for what gain? Have you asked yourself that question recently?
If not, perhaps you should. If you have, what answers are you working with?
Care to share them?
Meanwhile, someone’s unemployment is the marker of
opportunity. The unemployed is a worker unit now available to work on our
project. Reach out and connect. Soon he and his unemployed brothers will be
engaged in work to benefit us all.
That’s how free trade markets work. Trouble is we don’t have
many of them left. Most of our markets have had the risk beaten out of them by
regulation and safety nets. So beware which regulations you seek to remove.
They might make you unemployed; but don’t fret; it will only be temporary while
another entrepreneur finds a product or process to use your skills!
March 22, 2017
No comments:
Post a Comment