The rise of the Donald Trump Administration brings about an interesting twist to the economic landscape.
Dominated by power-hungry expansionary globalist entities for decades: It would appear that the emaciating American people have finally had enough and are now demanding change to the status-quo.
It was natural; the eternal search for cheaper resources all in the name of prosperity. Maximize shareholder value, minimize costs, why pay an American worker a living wage when you could get the ‘same product’ for pennies on the dollar exploiting slave labor found cheaply and abundantlly across the sea? The politicians certainly encouraged it.
Unfortunately, everything has limits. The American people; once prosperous, dynamic, thriving, today find themselves languishing, low wages, depression, unable to purchase the very same products they once proudly manufactured..
Dominated by power-hungry expansionary globalist entities for decades: It would appear that the emaciating American people have finally had enough and are now demanding change to the status-quo.
It was natural; the eternal search for cheaper resources all in the name of prosperity. Maximize shareholder value, minimize costs, why pay an American worker a living wage when you could get the ‘same product’ for pennies on the dollar exploiting slave labor found cheaply and abundantlly across the sea? The politicians certainly encouraged it.
Unfortunately, everything has limits. The American people; once prosperous, dynamic, thriving, today find themselves languishing, low wages, depression, unable to purchase the very same products they once proudly manufactured..
TariffsTariffs have a long complicated history in American politics & economics. Once, the main source of all Federal revenue (as high as 95%.) Today: imported goods subject to tariffs in America are at a historic low. |  |
USA Tariffs: Historical Timeline
As a newly formed nation, American industry could not cost-effectively compete against the substantially lower prices of established old-world European empires such as Great Britain. The tariff, effectively 'protected' American labor and business interests, serving as an economic buffer as well a revenue stream for federal government.
Tariffs were effective in achieving this goal. Perhaps, the industry that found the greatest success was the steel industry.
Tariffs were effective in achieving this goal. Perhaps, the industry that found the greatest success was the steel industry.
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Economic GlobalizationEverything changed after World War II. The world was in ruins and there was a concerted effort to unify nations. Trade barriers collapsed as the Western World unified under GATT (General Agreement on Tariffs & Trade.) GATT was signed by 23 nations in Geneva on October 30, 1947 and encompassed a 'substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantafeous basis.' The agreement lasted for 47 years until globalization was taken to the next level. The Uruguay Round Agreements of April 14, 1994 inked the WTO (World Trade Organization) and 23 nations became 123.  |    Average Tariff Levels for Major GATT Participants |
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Capital Flight
As with most things, the rapid integration of the global economic landscape brought about positives and negatives.
to be continued...
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