6 Responses to Trading Our Future: Tax Cheating and the Panama Free Trade Agreement

1. Linda says:

   July 19, 2011 at 9:05 pm

   What was the web site the lady gave on your show that you can go to and see the jobs lost State specific.

   Reply
2. Big Fan says:

   July 19, 2011 at 9:51 pm

   This google ad is showing on story page – Trading Our Future: Tax Cheating and the Panama Free Trade Agreement – seems a bit hypocritical doesn't it?

   Create an Offshore IBC
   Create an international business company to protect your wealth. http://www.OffshoreCompany.com

   Reply
3. Frank McInerney says:

   July 19, 2011 at 10:45 pm

   Dear Dylan:

   We are looking for reasons for the long-term weakness in our economy, but we are all ignoring the elephant in the room – free trade with low-wage countries and its inevitable cousin – outsourcing of jobs to low-wage countries. The first directly produces the second. How can it be argued that free trade with low-wage countries is good while outsourcing is bad? This is clearly illogical.

   Consider the following facts:

   1.Our trade deficit with China increased from $6 million in 1985 to $273 billion in 2010.
   2.China’s average growth rate has been very robust during this period, while the US growth has been anemic.
   3.US workers are paid at least 7 times more than the equivalent Chinese worker.

   I believe that our huge trade deficit with low-wage countries is directly responsible for our loss of actual jobs and potential jobs in the US. Free trade greatly benefits multi-national companies who can reap large profits by manufacturing in China and selling at a huge markup in the US. There is no realistic corresponding market for US goods in China. Why?

   1.The Chinese citizen does not have the money to pay US prices for goods.
   2.If it wished to sell to China, a multi-national company would just establish a plant in China to provide goods for that market. This would not produce US jobs.
   3.China has no respect for patents or trademark regulations. Consider Microsoft’s troubles in China. High-tech companies have little market in China, because ideas are easy to pirate.
   4.There is a flourishing black market for western goods in China which are sold at rock-bottom prices. These are frequently produced on the side by the “ghost shift” or third shift, so the item is identical in quality.

   The other arguments supporting free trade lack merit for trade with low-wage countries. These are:

   1.American industries will lose competitiveness with protectionist policies.

   This is true in a narrow sense, because by outsourcing jobs to low-wage countries, a multinational company has a huge profit margin, which can then be used to undercut their competition. However, in the wider sense, it is not true. With a huge profit margin, there is no incentive for increased efficiencies or improved quality. The frequent problems we have with the quality of imports from China demonstrates this.

   2.Free trade is the morally correct because it lifts low wages in these countries.

   Morality begins on a personal level and extends to family, country and finally the world. Free trade with low-wage countries is decimating the USA. That makes it immoral for us.

   3.Free trade produces low-priced goods for US consumers.

   This is true, however, it is not worth the cost in jobs. Imposing tariffs will certainly increase the cost of imported goods, however, this could be offset with lower tax rates.

   We need to stop free trade agreements with low wage countries. It is time that we seriously consider imposing tariffs on goods imported from low-wage countries. This would encourage job creation in the US while the tariffs would pay down our national debt. It is a win-win solution.

   Sincerely
   Frank McInerney
   Provo, UT

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4. 2012 Free Tax says:

   July 20, 2011 at 4:31 am

   Oh great news I like this blog. But free filing is the superb way.

   Reply
5. Ira Steinberg says:

   July 21, 2011 at 5:44 am

   Regarding the statement "Republicans are cancer in ole' Uncle Sam. No good thing issues forth from them." the exact same thing could be written about the Democrats. There is not much difference between them. Obama gets elected and the Elite still rule. What has changed except for the worse?

   Reply
6. John C says:

   August 3, 2011 at 9:55 pm

   Dear Dylan,
   Interesting story on Reuters where they report that Mcafee released a report dealing with "the discovery of an unprecedented series of cyber attacks spanning five years that affected the networks of 72 organizations globally, including the United Nations, governments and corporations." While they wouldn't name the suspected perpetrator they do believe it was one "state actor" and evidence seems to point to China although they wouldn't directly say so. They go on to say "What is happening to all this data … is still largely an open question. However, if even a fraction of it is used to build better competing products or beat a competitor at a key negotiation (due to having stolen the other team's playbook), the loss represents a massive economic threat."
   This thievery of intellectual property, trade secrets, stealing of negotiation playbooks, and even copying entire stores complete with fake products is getting ridiculous. Why do we have any trade agreements with this country? Wish Dylan would do a story on this.
   http://www.reuters.com/article/2011/08/03/us-cybe… http://www.businessinsider.com/fake-apple-store-c…

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