|
Send to a friend
Printer Friendly PDF Format
Subscribe to FFF Email Update
Subscribe to Freedom Daily
Trade Wars: The Empire Strikes Back
by
Sheldon Richman,
Posted June 27, 2005
A long time ago in a galaxy far, far away ...
Representatives of the Imperial President have traveled
to the far eastern region to negotiate strict
limits on exports. Although the recent surge in shipments
of badly needed inexpensive clothing from traders in the
region has raised the living standards of low-income
people in the home of the Imperial Government, it offends
well-connected Trade Federation interests. During the
negotiations the far eastern leaders hold firm against
the Empires intimidation and pressure. A trade war
looms. Back in the capital of the Empire
Hold on a minute. This is not the beginning of the next
installment of Star Wars. Its the
latest news of the Bush administrations attempt to
get the government of China to rein in its apparel
exporters. According to Reuters, China took a tough
line on Saturday in trade talks with U.S. officials on
its surging textile exports, signaling no quick
breakthrough in a row that threatens to spill over into
the diplomatic arena. Vice Premier Wu Yi says the
administrations latest restrictions on trousers,
shirts, underwear, and cotton yarn endanger the 19
million people who work in the Chinese textile and
clothing industry. Wu is quoted as saying, If this
cannot be handled well it will severely affect the course
of bilateral economic relations and trade.
For its part, the Bush administration is playing the
classic good copbad cop game perfected by President
Reagan when he extorted voluntary
restrictions on auto exports from Japan 20 years ago.
U.S. Commerce Secretary Carlos Gutierrez told the press,
I dont believe there is a full appreciation
in China for the level of political pressure that we face
with respect to our relationship. In other words,
take the terms Emperor, I mean President, Bush is
offering or risk inciting the wrath of the Imperial
Council. I mean Congress.
Some background: On January 1 the worldwide regime of
quotas on clothing and textile exports ended. Chinese
producers had the chutzpah to think that meant they can
now export all the goods to the United States that
American consumers were willing to buy. How naive. Or
not. Maybe the Chinese are simply being wily. Surely they
know that when we say free trade we
dont really mean free trade. We mean
managed trade managed by politicians and
bureaucrats, who obviously know better than consumers how
many inexpensive trousers, shirts, and the rest they
should buy. After all, consumers are just concerned about
their personal well-being. Government officials are
thinking of the welfare of the whole nation. So President
Bush sent his representatives to, let us say, enlighten
the audacious Chinese in the ways of the world. Will they
get the message? Or are there hard lessons ahead?
If the situation is beginning to look at little
ridiculous, it should. In the 1950s some people
irrationally feared swarms of Chinese invading the United
States and imposing communism. Today some people
irrationally fear floods of Chinese shirts invading the
United States and imposing ... what? Consumerism?
Dont the politicians see that we want the goods?
Why cant we have them? As they say, its a
free country. Isnt it?
Has it occurred to our (mis)leaders that Chinese
entrepreneurs have done more to raise the living
standards of low-income Americans than all the
welfare-state bureaucrats, anti-poverty workers, and their
trillions of dollars combined? Speeches about the minimum
wage, Medicaid, and food stamps amount to nothing
compared to the mass production of low-priced goods.
Worse than nothing because the welfare state
stunts economic growth, hurting low-income people far
more than the middle and upper classes.
The assault on our Chinese benefactors strips bare the
hypocrisy at the core of the welfare state.
Sheldon Richman is senior fellow at The Future of Freedom Foundation, author of Tethered Citizens: Time to Repeal the Welfare State, and editor of The Freeman magazine. Send him email.
|