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RE: Debate Forum - Week 10 - Trade Agreements
The intent is to increase the size of the bureaucracy and build dependence on the state. This serves the financiers and money changers. We need real free trade with no government interference, tarrifs etc. Let your economies free markets fend for themselves on a global scale, only then does the consumer win.
I completely agree with you on this. I do have one problem that I cant get my head around though, I was wondering if you have a theory...
Problem:Predatory business practise
Example:
One country goes completely free trade (Lets use UK as free trade country )
Second country uses excessive subsidisation(Let use france in this example)
Step1 :France starts massively subsidising the export of tyres to the free trading UK. This will cause the share prices of tyre manufacturing companies in the UK to fall/go banrkrupt
Step 2: France buys unprofitable tyre companies at bargain prices in Uk.
Step 3: Remove Subsidies.
I am all for free trade but there needs to be some way of resisting this kind of unfair trade
Inflation in France is the consequence. Higher costs of living when your livelyhood is extorted from your neighbor.
This is indeed a problem and I see the root cause being the idea that countries using tax payer money to do the subsidizing. The rich have been doing this for years as well. I've read of many bankers who manipulate an economy just by the decision on who get's loans or not. They can control the economy completely and dictate which industries flourish and which ones die. That is how they squeezed out alternative health care practices and made the pharmaceutical industry the power house it is today. They look for industries that create profits, dependencies, etc.
This will be a problem as long as centralized economies exist. Banks, governments and other centralized institutions can control the direction that industries take and engage in predatory business practices like what you mentioned above.
However, when we decentralize the work and trade that we engage in with one another, their power and influence is watered down considerably. Therefore I believe the risks would also diminish. Sure the richer people can still manipulate, but not to the degree they do now. They also risk ruining their reputation which could have detrimental impacts on their own wealth.
We are taking away that centralized method of control and manipulation. We see it here a little bit, but for the most part, we don't witness that type of manipulation. Why? Because the numbers are so large now, that no one individual can corner or manipulate the market.
Just my two cents worth. :)