| Ecuador recently imposed trade restrictions that put | | | | exploitation is more covert and hidden under the |
| tariffs on certain imports. The cry has gone out that | | | | mantra of free trade. We are all too familiar with the |
| this is "protectionism" and hinders free trade. | | | | mass exodus of U.S. manufacturing and service |
| Economists around the world have become fearful | | | | sector jobs to Asia and Mexico. This was done |
| that such actions may be followed by other nations | | | | because wages in those nations were pennies a day |
| as a tool to boost sagging national economies. The | | | | and business regulations almost non-existent. In the |
| questions to be asked are what are so bad about | | | | absence of tariffs, the products are then sent back |
| some form of protectionism? Is economic | | | | to the base country at prices far below those of |
| globalization really that great? Do such actions really | | | | local firms. Clearly, the globalized world economy is |
| hurt a free market economy? | | | | under the control of the few. |
| Ecuador uses the dollar as its currency. With our | | | | So, back to Ecuador. With trade restrictions, local |
| economy in the dumps, there is little wonder that a | | | | farmers are doing better. Local manufacturers are |
| nation like Ecuador would have concerns. According | | | | doing better and overall, locally based firms are |
| to some in Ecuador, the tariffs, while slowing imports | | | | growing. Who is hurt? Those companies that exploit |
| and hurting those companies that rely upon foreign | | | | foreign workers and undercut local trade. In a |
| goods; the tariffs have been a boon to locally based | | | | capitalist economic system, trade barriers are touted |
| firms. Is this a bad thing? Is it wrong not to depend | | | | as an anathema. Nations that tax imports are called |
| on foreign imports to meet local economic demands? | | | | the dirty word, 'protectionists.' Until such time as |
| We hear a lot of talk about free trade. But how free | | | | there are universal labor laws, fair wages, uniform |
| are the global markets? In a perfect world, firms | | | | business regulations and monitoring and equitable |
| producing products should be able to sell their | | | | access to labor and resources, the so called 'free |
| products anywhere without fear of trade restrictions. | | | | market' system is simply not free at all. If a nation |
| The theory being that those with the best product | | | | has the capacity and the resources to produce |
| for the best price gets the sale. However, the world | | | | products locally, why should their businesses be |
| markets are far from free. While many products in | | | | undercut by unscrupulous and foreign corporate |
| the U.S. come from China, they are not from Chinese | | | | giants? Certainly, if a product cannot be produced |
| companies which are paying their employees decent | | | | locally, markets to import such products should be |
| wages. They are often from American companies | | | | free and open. Business and labor, competing freely |
| who pay the Chinese workers dirt cheap wages. We | | | | and on equitable terms is a worthy goal. But, I do not |
| are all familiar with sweat shops and child labor abuse | | | | want my clothing produced in child sweat shops. I do |
| in foreign nations. Are these the features of a free | | | | not want most of my food imported from foreign |
| economy? | | | | nations that have no environmental regulations. I |
| In colonial days the economic system was called | | | | have no issue with bananas from Panama, we can't |
| mercantilism. Mother countries exploited their colonies | | | | grow them here. I have no problem with hand |
| for their raw materials and then made the colonies | | | | painted dishware that is reflective of a foreign |
| buy finished goods from them. Next came | | | | culture. I have no problem with bamboo products |
| imperialism, where powerful nations extended the | | | | from China. The point is, to me, globalization should |
| spheres of economic influence and once again, | | | | not be just a new name for imperialism. It should be |
| controlled the businesses and markets of other | | | | a system that allows nations to freely exchange |
| nations. Now we call it globalization, where | | | | products that are best produced by each nation |
| mega-corporations exploit the economies of third | | | | under a truly free set of rules and regulations. |
| world nations. In both mercantilism and imperialism, | | | | Protectionism may not be all that bad after all and it |
| the systems were overtly run by the exploiting | | | | just might bring home jobs that never should have |
| country's governments. In globalization, support for | | | | left. |