The Washington Outsider


Empowering the Sovereign Nation-State by Rethinking Trade Policy

Before American workers paid federal income taxes, the US Government was largely funded by tariffs and other fees imposed on those looking to access the American economy. As the world grew more complicated and expensive, the Federal government passed the Sixteenth Amendment in order to collect a "fair share" of revenue from American citizens. At the same time, emerging liberal economic theories on what we now call "free trade" were embraced by Democrats then later Republicans. From there, our government started making, often uneven deals against us, with other nations that basically eliminated tariffs.

Although it does seem quite silly to punish individuals and corporations for helping build the US economy by taxing them more than those who simply want to access the US economy, a quasi- free market, which a truly free trade system cannot exist in reality, does have many advantages that we can and should exploit. Of course, in the wake of the Great Recession even free market cultists should now recognize such philosophies also have disadvantages while our global economy has short-circuited many of the control mechanisms needed to deal with those shortcomings.

For example, the most often used argument against any form of regulation is that regulation will drive businesses out of the Country. In other words, instead of addressing issues like pollution, safety, worker rights, the National Debt, i.e. higher corporate taxes, when legislation is passed, companies are incentivized to leave America and import their goods. The effects of this is a lack of government intervention, which some view as a net positive, the weakened ability of workers to negotiate the value of their goods, i.e. their labor, in order to maintain Middle Class lifestyles and spending, the propagation of unhealthy business practices, and the displacement of pollutants/hazards onto foreign workers willing and/or forced to absorb these costs in order to have some form of economic success. In theory, the global community can collectively address these issues through demand, but as the US Congress demonstrates a handful of people can rarely come together to take a stand, let alone billions of people.

Furthermore, there are many industries that are vital to the economic health and national security of the US; however, one-size-fits-all free trade agreements, which make quality American goods that once supported Middle Class jobs far more expensive than foreign knockoffs versus cheapening foreign goods made more efficiently outside of the US and opening new markets for high quality American products, undercut these industries. The solution has not been to refine our free trade agreements, but rather, to spend money, or cut taxes, by subsidizing various industries, including oil, agriculture, etc. to spend money, as well as time, constantly retraining workers for jobs that may not exist or pay sustainable wages, and to spend more money buying imports with the hope that foreign countries like China will eventually play fair and support free trade agreements by buying US goods instead stealing US technology.

At the same time, we use sanctions to attempt to address crises around the world. Of course, what limited success these policies bring generally does not outweigh the damage done to the Peoples underneath misbehaving regimes and, due to the increasingly fractured nature of our International Community, sanctions hurt the economies of those willing to institute sanctions as these countries cannot sell their goods to regimes like North Korea or Iran while countries like China have used sanctions to their benefit in the past by supporting rogue states.

The US economy is the largest consumer in the world, so, whether we tariff or not, other nations are going to want to do business with us. Granted, much damage has been done over the last few decades and this prevents us from simply raising tariffs as we once could have done while I certainly would not suggest we try to reset our trade policies back to the early Twentieth Century. World leaders are trying to address issues like global climate change and human rights by creating a one-size-fits-all approach involving supposedly binding and nonbinding international agreements that rely on member states to play fair, even though they can profit by cheating. Like true capitalists, I think we can find a more concrete solution. Since money talks and we have the WTO, let's use it to level "protectionist" policies that allow governments to undermine other economies.

Granted, living standards in developing countries can be maintained and improved upon at lower wages, but there are such things as abusive wages and practices that allow countries to illegitimately undermine competition in other nations. At the same time, displacing the costs of industry onto the environment and populations, which increases healthcare costs, allows countries to undermine foreign economies while hurting our health as well. Because the International Community can rarely, or quickly, agree to specific policies, setting up a system of allowable tariffs under trade "enforcers" such as the WTO, which would level the playing field, will both help address these issues by punishing governments that do not address these issues as well as incentivizing and empowering governments to answer the demands of their People.

Of course, penalties will not be used against populations with weak governments and trivial, or nonexistent, industries as the goal is not to punish emerging countries trying desperately to improve the lifestyles of their Peoples, but to "level the playing field" for what we, as a global community, would determine to be "fair trade" and disincentivize governments undermining world powers . As such, tariff driven policies could target countries that espouse policies, which undermine foreign industries to grow wealthy without properly distributing wealth, i.e. paying workers reasonable wages, and failing to follow regulatory standards that keep the environment healthy.

Meanwhile, sanctions are becoming less and less effective. As such, we might consider, as a collective of nation-states, the option of charging such large fees to access the global market that we punish countries like North Korea and Iran, yet allow an opportunity for them to generate limited economic activity to provide for basic humanitarian needs, or force these nations to develop economies that cannot support their rogue behavior. In other words, we profit from rogue nations instead of paying for sanctions; this also has the advantage of demonstrating what cooperation with the International Community could mean for the People while it potentially allows their economies to stay intake so when their leaders relent, or disappear, the People of such nations can more easily rebuild their economies.

In truth, the implementation of such a policy shift would have similar components to our current sanctions policies and tariffs, as well as resemble somewhat inverted "cap-and-trade" proposals minus the over focus on carbon, while there are a lot of details that would need to be worked out and many criticisms that would have to be addressed, but we should explore the possibilities of using taxing versus spending. Consider some areas where we already employ very similar strategies: the Rico law effectively taxes criminal at a rate of 100% on all their ill-gotten gains while law enforcement has long used proceeds from fines to fund various programs.

Albeit somewhat unsettling to profit in order to punish a reckless government, when the expense of a People's pain looms, such a policy shift might also allow us to fund humanitarian efforts in such a way that we can actually divert money away from rogue behavior, such as building nuclear bombs, in order to feed, cloth and heal a People. (Of course, we also need to work on a propaganda strategy that shows the People they could have better lifestyles if their government didn't engage in rogue behavior.)

Additionally, empowering nation-states so they can more readily punish trade partners for failing to act as responsible members of the International Community and benefactors of the global market with the support and approval of global community would bolster the sovereign powers of individual nations in a world where global governance is becoming a reality, despite its ineffectiveness. Moreover, our blanket free trade agreements and current sanctions do not quite address our interests nor will they in the future, especially when major players like China, Brazil, and/or Russia disagree with the US, while we are capitalists at heart, so let us find capitalist solutions to global problems.
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        • Should Public Health Be a Priority to the Governments of the World?
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        • Should the Government Control Talk Radio to Make it More "balanced"?
      • How the People Are Lost in the Extremes of 'Right' and 'Left' in Politics
      • Should One's Faith Influence a Citizen's Vote?
      • Should the U.S. Government Help Fund Election Campaigns?
      • On Defunding Political Science Research
    • Worldview >
      • Justice for All: The Case for Legal, Social, Economic, and Personal Justice
      • Why Hardliner Thinking in the NSA and CIA is Doing Damage
      • On the Baby Boomer’s Self-Centeredness
      • The Case for Personal Responsibility
      • What Modern Day Revolutionaries Need to Learn from Leader's like Mandela
      • Rising Western Acceptance of LGBT Primes Culture Clash
      • The Need for Wisdom Beyond the Numbers
      • Perceptions of the United States
      • How Honesty Relates to the Great Recession
      • 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
      • Why Are We Against Terrorism?
      • Why Does Terrorism Exist?
      • US Influence: The Value of American Citizenship Around the World
      • Responding to "the Soldier as Sacrficial Victim"
    • Human Nature >
      • How comfort defines us as people >
        • Is Suicide a Cowardly Way Out?
      • Defense Against the Dark Arts of Manipulators
      • Defining Abuse >
        • On the Willing Victim of Abuse
        • How to Understand Abuse Victims
        • Recognizing Abuse
      • The Role of Substitution in Decision Making
      • Trying to Understand PTSD and Other Trauma-induced Mental Health Issues
      • Exploring Human Emotion >
        • Mental Illness is Not the Cause of Anger and Violence >
          • Trying to Understand the Boston Marathon Bombing and Other Violent Crimes
          • Getting into the Twisted Mind of the Tucson Murder
      • Describing the Mind as Modes of Thought >
        • It’s Just Sex?
      • Relationships, or Arrangement
      • Understanding the Effects of Groupthink in the Workplace
      • Relating Circular, Inductive, and Deductive Reasoning to the Scientific Method and Religion
      • What is a Redneck? Understanding Different Cultures and Thinking
    • Economics >
      • The Need for Greater Economic Leverage >
        • Evaluating NAFTA and TPP
        • Undercutting Logistics with the Underpaid Independent Contractor
        • Unions: Hindrance or Essential to Free Markets
        • 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
      • Empowering the Sovereign Nation-State by Rethinking Trade Policy >
        • 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?
    • US Constitution >
      • 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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