US economy fueled by patriotism

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In my opinion, free trade is unpatriotic. We live our lives day-to-day, but the big picture is in the hands of high caliber members of society such as the president of the United States, C

Andrew Smith

EOs and media moguls.

To love, support and defend ones country makes one a patriot.  Patriotism is a term born before the American Revolutionary War and adopted by the United States representing the passion we have for our country.

Free trade was implemented during Bill Clinton’s first term.  This time period was the last time in the modern era when the United States had a balanced budget.

North American Free Trade Association was established in 1994. This marked the beginning of free trade as we know it today.

NAFTA was completed during Clinton’s term as president. It was unfinished business from George H.W. Bush’s administration. Bush Sr. is a Republican and Clinton is a Democrat.

I find it weird that they both worked on this reform because, characteristically, Republicans support tariffs and Democrats oppose them.

Tariffs are a tax charged on imports into any given country by the local government. This allows the local market to compete with low cost import goods.  Global trade routes have been in place for centuries.  Tariffs were used to protect native industry.

Countries enter into a free trade agreement so they can appeal to a global market and increase their customer base.  A larger marketplace would, in theory, reach more consumers and provide greater profits for the business.

A larger marketplace actually makes it more difficult to run a successful business. There is a greater opportunity for corporations to produce its product in a country where the cost is lowest and sell the product in a country where the demand for a product allows for a high return.

One could argue that free trade was created with the United States’ best interest in mind. It increases venues and creates worthwhile profit opportunities, which before were unrealistic due to high tariffs.

In reality, what free trade has done is collapse the national and global economy by eliminating or reducing tariffs on imported goods from countries that are in a Free Trade Agreement with the United States.  Tariffs have provided a sizeable amount of the United States tax revenue in the past.

The revenue from tariffs is around 1.1 percent as of 2010.  The Federal Income Tax has taken over the responsibility of funding the government.  The burden is on the citizens, which has created stress among the middle class.

Tariffs are an important part of an economy because they provide revenue for the government of the country importing the goods.

For example, China makes rain boots for $10 which are then exported to America and sold for $30. America makes similar rain boots for $20 and sells them for $30 in the United Sta

tes.  A tariff would be charged to China by the United States government for roughly $10.

As a result, China must pay $40 to produce and import the boots into America. This promotes the US economy because the cost of exporting the goods from China is less efficient.

If the global economy can run inefficiently then the companies will have more reason to produce locally.  More local production creates jobs because the market is more closed off.

The answer is more control; you do not ride a motorcycle wide open for that would cause you to loose control and crash.  The better way to ride a motorcycle is to moderate your speed, accelerating when it is necessary.