Battleangel

Barely five years into the 21st century, with a globalized neo-liberal trade regime firmly in place in a world where market economy has become the norm, trade protectionism appears to be fast re-emerging and developing into a new global trade war of complex dimensions. The irony is that this new trade war is being launched not by the poor economies that have been receiving the short end of the trade stick, but by the US, which has been winning more than it has been losing on all counts from globalized neo-liberal trade, with the European Union following suit in lockstep. Japan, of course, has never let up on protectionism and never taken competition policy seriously. The rich nations need to recognize that their efforts to squeeze every last drop of advantage out of already unfair trade will only plunge the world into deep depression. History has shown that while the poor suffer more in economic depressions, the rich, even as they are financially cushioned by their wealth, are hurt by political repercussions in the form of either war or revolution, or both.

Protective tariffs were the principal source of revenue for our federal government from its beginning in 1789 until the passage of the 16th Amendment, which created the federal income tax, in 1913. Were all those public officials during those hundred-plus years remiss in not adhering to a “moral obligation” of free trade?

Source: Henry C K Liu, Asia Times

A very informative piece that illustrates the many pitfalls of protectionism in all its disguises. Also covers the wealth gap, the dollar hegemony and the increasing resistance to globalization. A revealing and encompassing article, dealing with many of the false hopes of the same trend, and the real and ever more sinister agendas behind them, as well as the more than likely outcome.

One especially apt bottom line: Developed nations are “kicking away the ladder” (as Friedrich List once put it) that they used to get where they are today and instead recommend (at best) or forcefully coerce developing nations to adopt policies that are contrary to their interests. Policies that the same now prosperous nations clearly never abided by when they kicked and clawed their way to economic independence. Amply illustrated by looking at US history, as the article also does.