Daily Commentary

May 08, 2000


Free Trade is NOT FREE


In October of 1997, the main headline in the Money section of the local paper stated: U.S. Trade Deficit To China Hits Record High. At that time the trade deficit was $10.4 billion per month. That's all; but not to worry, we have millions of service jobs coming on line.

"The widening deficit in August reported Tuesday was the worst showing in seven months and came at an inopportune time for President Clinton who is trying to sell a reluctant Congress on the virtues of free trade while preparing for the state visit next week of Chinese President Jiang Zemin."

The same year what was left of the Woolworth chain, almost a national institution, closed 300 stores nationwide.

This author has been looking for meaningful statistics that truly reflect the condition of hard industry in the United States. Has anyone conducted a study of what industry is left, versus industry that left so they could find cheaper labor with which to make their products? Why isn't this kind of information on the 6 o'clock news?

Okay, what does Woolworth's 1997 closings have to do with the exodus of hard industry here in the United States? Perhaps it means that fewer Americans make enough money to support these stores; or, perhaps they did not keep up with the times.

Other headlines that reflect the times that we're living in:

This last one is of special interest: NAFTA Growth Strikes A Nerve (U.S. workers irate as trade gap widens). Why do you think industrial workers object to NAFTA? Do you think it has anything directly to do with the deficit? Well, in a way. The wide deficit means that Americans are buying more than they are shipping out to other countries. Why would that bother industrial workers? Because they are losing their jobs at record rates to the same countries that are realizing the monetary benefits of that deficit money.

National Defense & Sovereignty

Is the issue of Free Trade just about the loss of jobs here in America? The answer to that is no. The loss of hard industry has surely been a tragedy for millions of Americans who once made $15 to $25 an hour who were then forced to take a wonderful service-oriented job at a fast-food restaurant, but it's been an even greater tragedy for National Defense and National Sovereignty.

First of all, in regards to National Sovereignty, the loss of jobs and the exodus of hard industry to other countries represents a real threat to self determination and self rule. How can this be? Simply because it has placed more control over our economy in the hands of folks who don't live in this country. Free trade has also enabled foreign investors of all kinds and sizes to purchase up a major portion of our land and other assets. Of special concern is farming operations and the land that goes with it.

Of course, while we're sleeping and working these wonderful service jobs, these transnational companies, which are often based outside of the U.S., are working to gain greater control over you and I through our politicals, not only in Washington, but also on the state level. All of this leads us to the final point: Free Trade undermines our self sufficiency and strength as a nation.

This author believes that the loss of so much hard industry in the United States actually represents a threat to National Defense. Why? Because if a country, like China, were to declare war against the U.S., bringing it to our own shores, we would not have the hard industry in place to make the war materiel necessary to launch a successful defense. How does this author know this?

In every war situation that America has found itself in, it had the necessary industry with which to retool and make war materiels. These factories were stationed here, on U.S. soil, so there was never a doubt that Americans could rapidly produce the necessary armaments needed to repel an attack. But today, can we honestly be assured of this?

Would World War II have ended with the defeat of Hitler if America hadn't had the hard industry in place needed to make war materiels? What would have happened if our industry had left these shores for Germany when times looked good and war was not on the lips of men and women across the world? What would happen today if a communist country (yes, communism is alive and quite well) were to declare war on the United States? Would the plants that moved to China and other third-world nations be kind enough to tool up and make our war materiels for us?

There is more at stake here than the loss of jobs, although this is certainly an important consideration. You and I need to stop thinking inside the box. We need to cast our apathy to the wind and care about what's going on around us. What effects one group here in the United States will effect others, and that you can count on.

What's the cure? For one thing, stop the exodus of hard industry. To do that, we need to recognize that free trade with third-world nations has more to do with cheap labor than a humanitarian cause. We need to reestablish appropriate trade protections and institute incentives for hard industry to stay.

Isolationism? No, not at all, just common sense. Why should America give equal status, dollar for dollar, to companies abroad that employ workers that make pennies per hour for their labors while Americans live in an economy where it requires a minimum of $10 an hour just to pay the bills and have a little money left over for a movie?

We need to let our Congressmen know that Free Trade is NOT FREE!! Instead, it has caused Americans to lose millions of jobs, which means lost tax dollars. It has also weakened our military might and threatened our National Denfense.

To find out who your House Representatives and Senators are, click on one of the following links:

Write them today and let them know that "Free Trade is NOT FREE!!"

Best Regards
Al Colombo

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Thank you. --Al Colombo


Allan B. Colombo
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