Natured number: Free markets


The percentage of Republicans that would agree with a presidential candidate who favored tougher regulations to limit foreign imports. (From the Oct. 4 Wall Street Journal poll.)

I don’t purport to understand the overall impact of NAFTA, CAFTA or trade agreements with China and other countries. I know globalization has contrasting positives and negatives — currently it’s negative for Big Business. 

The point of the figure is to illustrate fiscal conservatives’ call for assistance and controls when business is bad. Yet, when business is good they call for laissez faire approaches. Big business wants Chapter 11 assistance in bankruptcy, but they resist minimum-wage raises.

Big business wants freedom with black numbers and help with red numbers. They want their bills AND coins. 



One response to “Natured number: Free markets

  1. It’s the classica protectionism that America has always favored and what in fact all industrializd countries have historically favored. Neo-liberalism, the neo part coming from neo-classical economics, ie. Smith, Ricardo and others, are theories that don’t really work in pactice. How did the rich countries become rich? By following programs of protectionism. The neo-liberalism that they try to impose on third word countries is based on the understanding that it will benefit the rich countries and help develop the poor counties, at least in theory. In practice the poor countries remained under developed as large capital is shifted from the south of the world to the north. Argentia is a classic example. It followed to the ‘T’ all the programs of the World Bank and the IMF for decades, a plan of development based on neo-liberal economics. The result: a catastrpohic collapse of the economy and of sections of society in 2001 that the country is still strugling to overcome. Do you want a further example? Look at the development of the east asian economies over the past 40 years. The path of development that they followed was based around strong protectionism of the hom market, following the historical example of the european and US economies. The result, well many of these counties have economies now judged to hold a place among the advanced of the world. The US and Europe, along with their economic proxies the World Bank and the IMF, try to impose a policy of do as we say, not as we did policy on the third world, and it is working. There is not enough room to go into all the ins and outs of the issue here, but it is clear that this is the economic policy of the US: protect the home market to a large degree while you demand others open theirs. The failed Doha rounds of the WTO are a direct result of this as Brasil and other countires refuse to go forward in the talks when the US and the EU continue to subsidize their agricultural industies in orde to be able to undercut foriegn producers. They are saying to Brasil, ‘hey you should open your market to comsumer goods from the US, but you have to understand that we aren’t going to open our agrimarket to your producers.’ Its a very sensitive issue from the US point of view because the adoption of the neo-liberal policies ensures an economic hegemony over the south. Look at countries like Venezuela, who in reality are making very minor changes to their economic program, something like the New Deal of Roosevelt, nothing to radical, and you see the increasingly harsh and confrontational stqance being taken by the US.

    Question: How do you figure that globilzation is bad for big business? Isn’t big business the force that is driving it? Don’t confuse the americans that work for big business, and hence are represented by congress (suposedly), with the concerns of big business itself. The goal is profit and growth irrespectice of nation-state boundries.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s