The Washington Outsider

Donald Trump and Brexit Must Seek To Empower People and End the “Illiberalization” of the Global Economy

3/29/2017

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The United States and its policies draw a great deal of international attention due to the far reaching influence the world’s only superpower exerts on the economies, governments, and Peoples of the world.  Since the election of Donald Trump, the focus on the US has intensified to the point once-pressing issues like the Syrian Civil War, the Syrian Refugee Crisis, the Ukraine Crisis, and Bretix have been nearly forgotten.  As President Trump moves forward with his policy agenda, which includes undoing most of President Obama’s legacy, he gives more people greater reason to scrutinize his decisions.  Until Donald trump’s leadership becomes the “new normal,” the agony of not knowing will continue to draw attention away from other critical issues and invite heavy scrutiny.

​The
world must wait for the impact of Trump’s policies to work through the global economy, but Americans have a right to demand the President only act in the collective interests of the American People.  Asking what the anticipated benefits of a policy shift is a good place to start, but a more pertinent question is how much does a policy empower people.  Only when people are empowered will the benefits of policies be protected. Looking beyond Trump’s politically-charged and far-reaching policies, the Brexit offers a less contentious example of a nation undergoing a major public policy shift.  The terms of the Brexit will determine the costs and benefits of the Brexit.  While businesses lobby for their interests to be addressed, the best measure is how much the changes empower the British People.
The European Union was formed during a time of plenty when fiscally irresponsible behavior on behalf of governments and individuals could be ignored.  Fed on debt-funded “development,” the EU was an economic bubble built for times of prosperity.  No longer providing cash and opportunities for growth, the high-valued EU only improvises poor countries by inflating costs while offering little more than added responsibilities.  Due to the uncertainty and struggles of today, the EU is little more than a weight on the largely prosperous economies of Germany, France, and Britain.  Consequently, the Brexit was predictable while there is a strong possibility of a Frexit and a Gexit.  

National interests change with time, thus treatises and treaty Law must be recalibrated to serve the shifting interests of allies.  In providing for the common defense and economic welfare of EU members, diplomatic institutions of the EU are rapidly superseding the authority of the democratically elected national governments of European countries.  Unfortunately, diplomatic and economic arrangements like the EU are perceived as permanent institutions of international governance.  Because their existence is seen as unshakeable, there is a tendency for the policies and roles of these international institutions to stagnant, even when they become misaligned with the interests of nations like Britain to the point they no longer serve the national interests of their member states. 

Globalization and “free trade” do open poorer countries to capital and opportunities from richer countries.  In turn, richer countries gain greater access to existing markets and emerging markets, thus enabling them to sell more products to more consumers.  This should mean the embrace of free trade agreements to accelerate globalization helps the economies of the world flourish.   By this logic, Britain’s exit from the European Union, which is feared to be the first step in the disintegration of the European Union, should, therefore, represent a threat to the prosperity of rich and poor countries alike. There are, however also costs and those costs create financial problems for average people.

The biggest issue with widespread, globalized tariff-free trade is that it deleverages workers and localized businesses by forcing them to compete as part of a global workforce struggling to provide for global demand.   Based on “supply and demand,” a massive global workforce without enough work means workers face downward pressure on their wages.  Conversely, the need to enhance global supply to meet global demand puts upward pressure on the cost of natural resources and goods. Because free trade essentially turns the global economy into a lowest bidder economy, the future bargaining power of workers in poor countries is undermined in the same way the leverage of workers in rich countries is undermined. 

Businessmen like Donald Trump see the world in terms of deal making and bargaining.  When the parties involved in a business deal have equal leverage and/or act to address each others’ interests, the most viable and mutually advantageous deal is likely to be produced.  When one party has greater leverage over the others, that party has an advantage.  When the advantage is too great and/or successive deals continually neglect the interests of the other parties, either the negotiations or the business deals will collapse.  A lack of adequate leverage prevents workers and localized businesses from pursuing their interests to the detriment of the whole economy.

Celebrities and CEOs are routinely able to extort millions of dollar in pay for their services. The average person cannot do this. The reason is that affluent people have greater leverage when they are seeking compensation, i.e. the potential revenue they can make their employers affords them leverage. For most other individuals, education, expertise, union membership, professional affiliation, and a whole host of other factors give them varying degrees of leverage.  Reflecting on America’s Golden Age, the much of the Twentieth Century was spent empowering the masses with greater leverage.  Some of this was accomplished by government bolstering the leverage of individuals with legislation that helped protect workers with regulation and unions.   

Given that domestic governments must tax businesses at uneven rates and regulate industries according to their capacities and needs, while government involvement in the economy is unavoidable and workers must be paid in line with their cost of living, free trade policies do not create “free trade” and cannot offer the predicted benefits of free trade.  In other words, free trade in practice does not equate to free trade in theory.  The removal of tariffs through free trade agreements distorts the economy in favor of imports, thereby catering to special interests, instead of fostering sustainable trade; whereas, the removal of technical barriers fosters trade by making it easier.

With that in mind, the “illiberal” concept, which was popularized by Fareed Zakaria, describes nations that embrace superficial democracy, yet lack true democratic institutions and a legal system that protects the civil liberties of individuals. Although “illiberal” typically describes civil liberties and the rule of Law, countries can be illiberal in economic terms as well. This writer has argued “ill-democratic” better describes situations where authoritarian-minded leaders hijack democratic institutions to legitimize, solidify, and consolidate every form of power in their countries.  The “illiberal” term should be reserved for situations where the unimpeded freedoms of the affluent allow them to suppress the interests of others, which is exemplified by pre-Civil Rights Movement America.

The US is a liberal democracy, because the US Constitution prioritizes individual rights above cultural rights and government authority while all individuals, without regard to their socioeconomic status, are supposed to have the same legal rights, i.e. civil liberties.  Because women and minorities did not have civil liberties in a practical sense, America was an illiberal democracy before the Civil Rights Movement resulted in laws that protected the disenfranchised from discrimination.  Although the US was founded as a liberal democracy, it has continued to liberalize, e.g. the Civil Rights Movements. Just as discrimination based on gender, race, and ethnicity translated into a lack of civil liberties in a practical sense, an unhealthy economy, which caters to the wealthy at the expense of the majority, translates into a lack of economic freedom.

Just as government interference was required to ensure all people enjoyed the same legal rights, proper government interference in the economy is required to ensure economic freedom.  Economic liberalization describes decreasing government interference in the economy and the opening of an economy to foreign investments and goods, yet illiberal policies can hinder so-called free market economies by undermining the interests of the majority.  In a world defined by immense economic disparity, great pockets of inescapable poverty, decreased opportunities for average people, and increased costs, economic liberalization is increasingly seen as a means of enriching the already rich.

The formation of the Europe Union helped give the US a stronger economic partner and allowed the Europeans to balance American influence in the global economy.  Unfortunately, it also created layers of bureaucracy that put distance between the Peoples and their democratically elected leaders, thereby undercutting the democratic authority of individuals. In all, the over "illiberalization" of international trade undercut the ability of governments to tax, regulate, and protect their national economies, thus neutralizing the leverage governments had once extended to their Peoples.  In other words, countries outsourced their economic sovereignty and deleveraged their Peoples.

​The terms of the Brexit must, therefore, focus less on economic benefits to consumers and more on the empowerment of individuals.  Proper regulation empowers people.  The removal of technical trade barriers, including disparities in regulatory burdens, help empower people as consumers and employees to engage in greater international business as long as high regulatory standards are adopted among trade partners.  The easing of tariffs can also empower individuals as consumers; but the removal of tariffs must be targeted to industries where Britain cannot already provide for its needs in exchange for the removal of tariff on goods Britain can better supply the EU.  Above all, negotiators must recognize that people are both employees and consumers whose competing interests must be addressed while adopting mechanisms to calibrate British-EU trade relationships.
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      • On Defunding Political Science Research
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      • Justice for All: The Case for Legal, Social, Economic, and Personal Justice
      • Why Hardliner Thinking in the NSA and CIA is Doing Damage
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      • Why the Middle Class and Rich Need to Support Their Long-term Interests
      • The Aristocratic Republic of the United States of America
      • Discussing the Need for Community Support
      • Why New Forms of Capitalism and Socialism Will Compliment Each Other
      • The Reason We Need to Understand What it is to Be Poor in America
      • Why the World Needs to Reinvest in America
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      • Why Does Terrorism Exist?
      • US Influence: The Value of American Citizenship Around the World
      • Responding to "the Soldier as Sacrficial Victim"
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        • Is Suicide a Cowardly Way Out?
      • Defense Against the Dark Arts of Manipulators
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        • Recognizing Abuse
      • The Role of Substitution in Decision Making
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          • Getting into the Twisted Mind of the Tucson Murder
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      • Understanding the Effects of Groupthink in the Workplace
      • Relating Circular, Inductive, and Deductive Reasoning to the Scientific Method and Religion
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        • Evaluating NAFTA and TPP
        • Undercutting Logistics with the Underpaid Independent Contractor
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        • Eminent Domain Used Against Banks
        • Haitians Sue the UN for Failure to Help With Cholera
        • Looking at How Corn-based Ethanol and Other Alternative Energy Subsidies Stack Up
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        • Irish Sovereignty Lost Before Bailout
        • Why Sudan's Greatest Long-Term Hurdle is Our Lowest-bidder Economy
        • Reduce US Imports by Buying American Made Products
      • Ending the need for government support and tackling poverty
      • Income inequality: understanding the limitations and psychology of disadvantage
      • Looking at the Future of American Jobs >
        • On Questioning the Need to Address Economic Disparity
        • Minimum Wage is Not the Problem
        • Responding to the "Blip"
        • Why Education Is Not The Civil Rights Issue Of The Twenty-First Century
      • Considering the Impact of the Capital Gains Tax Deduction
      • Embracing a Capitalist Mindset >
        • Capitalism Versus Socialism
        • The Negatives of Socialism
      • Stealing Intellectual Property
      • Changing Business Models: From Enduring Entities to Cash Cows
      • Consumer and Investor Evolution in the Great Recession of 2008-09
      • Dealing with the Issues Surrounding the Patenting of Self-replicating Technologies
      • Is Technology Threatening Jobs?
    • Education >
      • The Role of Education in Creating a More Dynamic Workforce
      • Primary Education in America and the Changing Needs of Society
      • The Greatness of the American Education System
      • Ideas for Improving the United States Education System
      • Are Teachers Treated as Professionals?
      • Is Engaging Parents in Their Children's Education a Major Factor in Turning Around Low-performing Schools?
      • Should Grants Be Awarded to School Districts that Try Innovative Methods to Improve Student Achievement?
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      • On Reading the US Constitution
      • The Senate should not do more to limit the powers of the Judicial Branch
      • On the DOJ Justifying the “targeted Killings” of US Citizens
      • Corporations Do Not Have the Same Rights as US Citizens >
        • Corporate America Pleads the First
      • Discussing the Constitutionality of Per Capita Taxes
      • Was the California Supreme Court Right in Legalizing Gay Marriage?
      • Should the Bible Continue to Be Used for Swearing-in Ceremonies and in Courtrooms?
      • Should Religious Student Clubs Be Allowed in Public Schools?
      • Should the Government Control Talk Radio to Make it More "balanced"?
      • The Second Amendment: Not Outdated >
        • Are We Losing Our Second Amendment Rights
      • Eminent Domain Used Against Banks
      • Should a Woman Have the Right to Choose Abortion? >
        • Should Fathers Be Able to Opt Out of Parenthood?
      • Should Smoking Be Allowed in Public Places?
      • Is Teen Driving a Right or a Privilege?
      • Should US Companies Be Required to Provide Equal Pay to Women and Men?
      • Is eighteen too young to vote?
      • First Amendment Rights: The Priviledge of The Press
      • Do Mandatory Seat Belt Laws Violate Individual Rights?
      • Should cell phone use be banned while driving?
      • Dealing with the link between video game violence and children's behavior
      • Should police have to submit to routine drug and alcohol testing?
      • Public schools should not impose mandatory drug testing on students
      • Are High Taxes on Cigarettes Proper?
      • Should pharmacists be required to violate their religious beliefs and dispense the "Morning After Pill?"
      • Should school counselors uphold patient privacy or report students who become unstable?
  • For the record
    • Ongoing Issues >
      • Red Dawn in Ukraine: Understanding the Actions of Russia >
        • On Russia’s Coercion of Ukraine
        • The Russian Annexation of Crimea in the Eyes of the World
        • Putin Has Overplayed His Hand With Crimea
        • Ukraine in Terms of Resovereignization
        • Avoiding a Conflict Between America and Russia Over Ukraine
        • What Drives the World’s Interest in Russia’s Actions in Ukraine
      • China’s Aggressive Pursuit of Interests Demands a Global Response
      • Iran Makes a Deal: A Start to a Long-term Diplomatic Effort to Denuclearize Iran >
        • On the Future of a Nuclear Negotiations with Iran
      • America's Sphere of Influence: Retaking South-East Asia >
        • Power in Asia: Looking at the Power Shift in Japan
        • The China Paradox: Why America is Worried About China
      • Assessing US Support of Israel >
        • Tread Softly Israel for a Heavy Step May Be Your Undoing
      • Understanding the Dysfunctional Nature of the US-Pakistani Relationship
      • Recognizing the True Threat Behind the Current Unrest in the Middle East >
        • Reacting to the Escalating Crackdown in Syria
      • Assessing the Threat of North Korea >
        • Answering North Korea's Call for Food Aid: Breaking the Vicious Cycle Forced Upon Us by a Warring Nation
        • Dealing with the Restarting of the Korean War
        • North Korea Attacks South Korea
      • Dealing with the Ill-effects of Climate Change
      • Racial Inequality and Oppression Do Truly Exist in Today's Society
      • Should energy independence be a high priority in the US?
      • An overview of world wide Human Rights violations
      • Nuclear Threat from Pakistan
      • Return of The Cold War?
    • World >
      • Coverage of FIFA World Cup is a Chance to Focus on Poverty >
        • The FIFA World Cup Offers Benefits for More Than Brazilian Soccer Fans
        • FIFA Can Bring Brazilians Together as a Nation
      • Being Prepared for Any Potential Dangers at the FIFA World Cup Games
      • Treading Softly on the Politicizing of the 2014 Sochi Olympics Over Gay Rights
      • Why NATO Operations in Libya Lack a Well-defined Mission
      • China Hijacks the Web
      • Lessons from the Great Japanese Earthquake of 2011
      • A Modernizing Cuba Offers an Opportunity for Capitalists
      • The Seeds of Democracy Take Root in the Middle East
      • The Rebirth of Democracy in Tunisia
      • What May Come from the Hurt Revolution in Libya
      • Responding to the Violence of Qaddafi and Other Besieged Leaders
      • Embracing the Rise of a Democratic Egypt
      • Protests in Afghanistan Turn Deadly for Coalition Forces and UN Personnel
      • Haiti: Another Failing Humanitarian Investment
      • What Karzai Can Learn from Calderon
      • START II: A Necessary, Easy Success that Nearly Failed
      • Why Does the U.S. Government Support Independence for the Breakaway Serb Territory of Kosovo but Oppose Independence for the Breakaway Georgian Territories of Abkhazia and South Ossetia?
      • Iraq's Electric Issues: When Human Wants Trump Economic Sense
      • The International Community Reacts to Wikileaks: We May Be Moving Toward a Third World War in Cyberspace
      • On Climate Gate
      • Assessing Obama's Afghanistan War strategy
      • 2009 Iranian Presidential Election: The Fallout
      • Resolving Sri Lankan Conflict through Free Media
      • What are the Global Consequences of Russia's Invasion of Georgia
      • The War in Iraq: an assessment of President Bush's surge strategy
      • Drug War: Actions of Venezuela, Columbia, Ecuador in terms of Resovereignization
      • Is the Iraq Refugee Crisis America's Responsibility?
      • US support for a united Kosovo, Abkhazia, and South Ossetia: why?
      • Should the US withdraw from Iraq?
      • Setting a Timetable for Troop Withdrawal from Iraq is a Terrible Mistake
      • War on Terrorism is needed
    • Law and Order >
      • Rape in the US Military
      • Ethics of Force-feeding Guantanamo Bay Detainees
      • Reacting to the Aftermath of the Tucson Massacre
    • Economy >
      • Affordability Drives Fear of Obamacare and the Individual Mandate
      • Is the Economy Built for a Job's Recovery?
      • Gutting Healthcare Reform of the Individual Mandate
      • Arizona Budget Cuts Lead to Lethal Healthcare Rationing:
      • Shameful Collection Practices of American Banks
      • The Fed Reveals it Actually Undertook an International Bailout
      • Thoughts on French Budgetary Reforms
      • Seniors Start Businesses
      • The Case for Slimming Down the US Military to Make it Better
      • Looking at the Obama Administration's New Approach to Economic Policy
      • Should the Government Regulate the Credit Card Industry?
      • The Big Three's Big Chance
      • The Unhealthy Tone of the Healthcare Reform Debate
      • Should the federal government offer a bailout for home owners?
      • Environmentalists: Do They Do More Good Than More Harm?
      • Responding to Scott Walker's Contribution to the War on Unions
    • US Government >
      • America Needs to Focus on the Impending Fiscal Crisis
      • Reacting to the Bush Era-tax Cut Extension Deal
      • Quitting the Obama Revolution: The Fickle Nature of American Politics
      • John Boehner's Circus
      • Is the Fed Putting Itself in Jeopardy?
      • Wikileaks Goes After the US State Department
      • Discussing the Political Environment Surrounding the 2011 Budget Debate
      • What the Democrats Can Do to Ensure a GOP Year in 2012
      • What the 2010 Midterm Actually Said
      • Congresswoman Kathy Dahlkemper
      • Democrats Minus Nancy Pelosi Equals Opportunity
      • Terrorists Go Postal: The Terrorism Threat Reexamined
      • Victory in the 2008 Election: Reaction to Barack Obama'a Win >
        • Expectations for Barack Obama
      • President Obama's first one hundred days
      • John McCain's Negative Campaign
      • Reasons People did not Elect John Mccain
      • History judges the George W. Bush Administration
      • Should the next US President focus on domestic issues?
      • President Bush, should he resign or be impeached
      • Should the Ban on Government Sponsored Assassinations be Repealed
    • Off Topic >
      • A Face of America’s Greatest Generation
      • A Story About a Man Who Made the World a Better Place
      • Making the World a Better Place
      • The Bipolar Ethical Nature of Google
      • Learning Computer Plays Jeopardy
      • Verifying Medicine is the Real Thing
      • Taking a Practical Step Forward in Optical Computing Using Slow Light
      • Scientists Take a Closer Look at How Lithium Batteries Work
      • Remarking on the First Blizzard of the 2010-2011 Winter Season
      • Driving in the Snow: Acceleration is the Key
      • How People in Northwest PA Are Coping with the Increasing Cost of Oil
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