Democratic presidential contenders trash NAFTA

Toronto Star ^ | August 24, 2007 | Tim Harper

[William Terrell]

. . .for all its faults, they are still better than the alternatives.

Why not just make everything Americans need and use to live life in this country using domestic industries? We used to, and, matter of fact, made ourselves into a great nation and superpower. What prevents us now?

[gondramB]

>>Why not just make everything Americans need and use to live life in this country using domestic industries? We used to, and, matter of fact, made ourselves into a great nation and superpower. What prevents us now?<<

There are two ways to make that happen.

1. A fully centralized economy. North Korea is the only one left but they used to be quite fashionable. Such economies suffer from inefficiencies that cause problems. Enforcing such an economy takes a police state.

2. Tarrifs and other trade barriers so hight that incoming trade stops. This generally stops trade in both directions as other nations retaliate. The simultaneous loss of jobs related to exports plus the inflationary pressure as everything previously imported now has to be produced here no matter how high the cost tends to upset people a great deal. Combined with the current highest budget deficit in history the U.S. would quickly be unable to meet its obligation and the form of government would likely change.

So the only real solution is to either work very hard at improving efficiency coupled with strategic investments around the world or to accept the long term prospect of a lower standard of living.

[William Terrell]

All of which is completely beside the fact domestic production/distribution/consumption was the way we did it until recently (I believe the turning point was when vehicles doubled in price in the late '70s). We could go back at any time, except for the propaganda problem, made so successful by the complete economic ignorance of the people.