The subject of this commentary is that of "free trade" and what it promises for developed nations like the United States. What made me decide to do this particular editorial was an article I read in the January 2000, Popular Electronics, entitled Chinese Invation, found in the Electronics section on page 29.

Frank Vizand, the author, told how Chinese companies who have traditionally made electronic items for U.S. firms, private labeling them so consumers never knew who really made them, are about to market their own products under their own names here in the U.S. Evidently, independent tests show that despite the fact that their counterparts here in the U.S. often cost upward to three times more, the quality of the Chinese products are comprable and often better.

His concluding statement was: "In the coming months, Konka will be joined by other Chinese brands. And while we can't offer any across-the-board testimonials just yet, Konka has set a high-quality, low-price standard that should please U.S. shoppers."

I can still hear my father's words reverberating in my ears as a young boy and then young man... "Remember, Allan, the cheapest is not necessarily the best." I learned to follow his advice in many of my purchases. In this case, cheap, yet quality, seems more like an oxymoron than common sense, although it could very well be true in some instances. However, ask yourself the question, "how could Chinese products cost less and yet deliver more?" Personally, back in the 1970s, as a young man, my answer was "U.S. manufacturers must be greedy and gouging the consumer." But, is this really true?

The plain, simple fact is, it costs far more to live in the U.S. than it does in third-world nations. Thus, I would think that the wages paid to third-world workers would be in proportion to their economy. This means that you and I in the United States make a lot more on the hour than our foreign counterparts, and thus those who pay us to make these products must charge more than manufacturers who use labor from third-world countries. Obviously, this is why we've lost so much industry! And yet those manufacturers who pulled up stakes and moved to these third-world countries bring their cheaper-made wares back into the U.S. for us to buy.

Okay, so the multi-nationals have decided to shift the physical work from a U.S.-based workerforce to that of a foreign. Why should this bother you and I here in the United States? Because this nation did not become a strong superpower on the merits of a service-based economy. It became a major world power because of it's manufacturing base, which gave us a strong military capability. As I stated in my 05/08/00 commentary (Free Trade is NOT FREE), the presence of so much industry in the U.S. in the 1930's and early 1940's is probably what enabled the allied forces to defeat Adolph Hitler and his National Socialist German Worker's (Nazi) Party.

Why is this significant for us, today? Well, I see several reasons. First, because as our manufacturing jobs head South and East, so do our high-income, low-skill jobs. This means that more of our unskilled labor force will be unemployed. Oh, but unemployment is at an all-time low, right? I'm not so sure. The simple fact is that many years ago I had learned that our government bases the unemployment figure on those who draw on state unemployment reserves. As the eligibility of our unemployed workers run out, these individuals actually drop off of that statistical list. So, things may not be as rosy in the New World as one might think.

The bottom line is that our imports and exports are disproportional by a huge margin. This should worry you and I because it means that more and more U.S. workers are out of a job. The absence of these relatively high paying jobs mean less folks out there to buy the products and services that you and I offer. Could this have an impact on our jobs and businesses? Sure it could, and it may. And yet, our labor unions continue to back the very politicals who push the free-trade agenda. Frankly, there's no end in sight, unless we happen to vote these politicians out.

Please go out and vote when the time comes, and vote smartly. Research the candidates and find out what they really stand for. Keep in mind that what many of them say while standing in front of the camera or reporter is not what they do once they are elected. We've seen this happen all too often.

Keep the faith and continue to pray for our leaders and nation as a whole.

Regards,
Al Colombo, Editor

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