Free Trade:Social Implications
by Dr. Adrian H. Krieg

The present progressive social and economic theory that consumes virtually all our time is the false concept of "Free Trade". Our media relentlessly advertises this concept as the ultimate social achievement of American society. In fact free trade is older than any reader of this essay. England in 1911 had a free trade policy; Hitler and Mussolini both introduced free trade policies. The fact that most media workers and politicians are economic illiterates, and the fact that "Free Trade" is the Trojan Horse for the creation of a one-world economy seems to be missing from the entire debate.

Let us clarify the concept of free trade; the postulated theory is as follows: In the realm of economics of production and labor the world economy will regulate its self through consumption; the market forces of supply and demand, and the free exchange of commodities and services between nations and individuals. Production will be self-regulating to allow the greatest possible profit, while competition will force the lowest possible prices. This is what we have been taught as the correct and true market reality for the twenty-first millennium.

The theory is in fact not just flawed, but is a false concept, which contradicts people's basic rights as well as those of society as a whole. The theory that for success to be achieved the common good may be ignored in favor of corporate profit is basically evil. The concept that we can approach one another in a "free market in free trade" as participants of a free economic enterprise, without consideration of consequences to our fellow man is wrong. The idea the free individuals have the social right to maximize personal gains at the cost of their fellow citizens is an abomination.

First: We do not now have nor have we ever had free trade. We have government-controlled trade, at the behest of multi-national business. Free Trade as a concept is the sole property of multi-national business and international banking, which finance the political machinery, and media in support of their free trade policies. In fact the only beneficiaries of the policy are those very same organizations, at the consternation of individual citizens and small business. NAFTA the illegally implemented agreement (1) has lost America $278 billon in trade and approximately 7 million manufacturing jobs. (2) WTO (The World Trade Organization) is the functional enforcer of free trade, and through America's elevation of WTO to treaty status we have relinquished our national independence on trade and economics to an international body. (3) To make matters worse every member of WTO has the same basic voting rights thus the size of the participant is irrelevant in their political power. WTO has voted against the United States in every single case brought before it since its inception. This does not mean that the rulings went against the multi-nationals at all they went against the environment, labor, and small business. GATT is another treaty used as an enforcing tool by the same multi-national corporations to keep themselves in charge of all trade and world policies.

The basic error from an economic standpoint of view is that in a competitive world environment basically non-compdative economy's containing totally differing parameters are incapable of functioning in concordance. These basic differences include language, labor cost, raw material availability, social and economic laws, age demographics, education, infrastructure, and gross national product. To simplify, Mexico and America: age demographics are reversed, education 1 is reversed, wage difference in blue collar is $ 1.44 per hour in Mexico and America has a minimum wage 400% higher, Mexico basically has no social security, no EPA, no OSHA, no workers compensation, no organized labor movement, and approximately 1/3 the population of America with a standard of living considered below poverty level in America.

Manufacturing in Mexico is between 400 and 500% cheaper than in America. Any domestic producer who intends to stay in business will in short order come to the realization that he must move all labor intensive work south of the border or go out of business.

The above given is far from the only argument against free trade. One major issue deals with the moral aspect of profiteering at the detriment of other member of society. This of coarse is exactly what the multi-nationals are up to. While they are downsizing, merging, and streamlining, their employees are being laid off, all the while all labor-intensive work is re-located to the cheapest, and least controlled production environment. As an interesting side note prices that should as a consequence drop sharply, never do. (4) Profits on the other had increase stridently as the production moves offshore. More money is spent on advertising to induce the fool who just lost their job to purchase more of what they really don't need.

Another interesting side note is the product liability card, a factor not often considered in this equation. Basically product liability insurance is supported against attachable assets in the jurisdiction of the court within which the producer manufactures. So if you have a Firestone tire that fails then all Bridgestone/Firestone manufacturing plants within the jurisdiction become attachable. If however the tire is a Samsung made in Korea, with no domestic manufacturing plants and the American inventory belongs to a third party, nothing is any longer attachable because it is outside of the courts jurisdictional power. Thus the very expensive cost of product liability insurance (5) can be minimized. Trial lawyers are the most vociferous supporters of product liability laws, with which they trough exorbitant fees collected from litigants support the corrupt political machinery, which in turn allows the practice to continue. It is a reasonably good estimate that the average American produced product bears a cost to the consumer of about 8% to 15% in product liability insurance fees. That is every single item you buy! And yes Ralph Nader is a trial lawyer.

The entire "Free Market" conceptualization can be summed up in the current vernacular; "me first" or "if it feels good do it". It is based on liberalism of the classic sense as espoused by early mercantilism. It is the ultimate selfish concept by which all responsibility is avoided. Seven million Americans have lost well paying jobs to this evil, and America is losing billions in international trade every single month.

1 The States never ratified NAFTA, and thus lacks treaty (b) status Clinton enacted it as an agreement through EO. (a)
a EO's (executive orders) are illegal because they are not mentioned in the constitution and are a clear violation of Article 1 Section 1 of the constitution.
b Treaties can only be enacted by the president with the advice and consent of the Senate by 2/3 majorities.
(2) Figures effective end of 1999
(3) Article 6 Paragraph 2 Treaties become part of the constitution.
(4) Car radios and sneakers for example.
(5) Depending upon commodity American product liability insurance rages from 4% to 15% of
gross sales.

GATT General Agreement on Trade and Tariffs
WTO World Trade Organization
NAFTA North American Free Trade Area
EPA Environmental Protection Agency
OSHA Occupational Health and Safety Act

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Dr. Adrian Krieg is the author of :
The Satori and the New Mandarins
July 4th - 20016 - The Last Independence Day
Our Political System

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