International Economics

A new day has dawned. Yes, we have been here before, but the open, free markets of international trade have truly never been unfettered or free. They have been tortured by countless restrictions, controls and outright discrimination. Some trade was even conspiratorial to gain access to intellectual property and control it. Russia and China are the most common suspects in that domain.

In recent years, however, trade has become more open and less restricted. However, it remains a political minefield for many nations.

In America, politics have soured international trade. Many industries lost markets to cheaper producers in foreign lands. Many jobs simply relocated to China (manufacturing), India (research and sales/service call centers), and many countries too numerous to relate. People bemoaned loss of jobs here at home, but no one bemoaned the higher standard of living we Americans gained by having access to high quality cheaper goods made overseas.

Markets in poorer nations soared in financial strength and those bought more American goods and services. There was a definite bounce in America’s domestic economy from such trade.

Lasting loss of intellectual workers and crafts persons was deeply felt. The tool and die industry is but one example. However, international trade with Russia has mostly been destroyed by Putin’s invasion of Ukraine. How China reacts to all of this may spell a very large reduction of trade between the US and China. That is not a bad thing. American optimism and entrepreneurial spirit will find ways to capitalize on a resurgence of recaptured industries which moved overseas in the last 20 years.

I am a free trade fan. I think unrestricted global trade benefits everyone. Low wage jobs go to countries who need it while advanced societies use the newly freed up labor to retool industries and move on to business that pays higher returns on investment. It is how we renew our own economic system.

Global free trade will suffer the occasional interruptions caused by battered foreign relations. But in the main and over the long haul, global free trade benefits everyone and every nation.

Now is the time for entrepreneurs to look for opportunities to modernize our future. I can see 5 or 6 million available employees ready for retraining. They are smart, capable and willing, What are we waiting for?

November 14, 2022

 

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