Archive for July, 2013
Posted in corruption, Economics, Economics, recession, Politics, the Rigged Game, trade, trade deficit, Uncategorized, tagged Barack Obama, earl blumenauer, Economic Policy Institute, Mexico, North American Free Trade Agreement, Ron Wyden, South Korea, United States, Wall Street on Jam7000000amSun, 28 Jul 2013 11:33:55 +000013 10, 2010| Leave a Comment »
According to a new study from the Economic Policy Institute (EPI), “President Obama and his predecessors have frequently claimed that free trade agreements (FTAs) and other trade deals will lead to growing exports and domestic job creation. The president is currently negotiating two massive new FTAs that are likely to result in increased outsourcing and growing job losses, especially in the manufacturing sector. This paper reviews recent data on trade with South Korea after the U.S.-Korea Free Trade Agreement (KORUS) took effect, and on trade flows after other free trade agreements.”
In reality, so-called free trade agreements are corporate trade agreements, and the primary purpose for them is to redistribute income from the 99 to the 1 percent. When a job is shipped from a high wage nation to a lower wage nation, the difference between the old wages and the new lower wages creates greater corporate profits, which pushes up dividends and share prices for the 1 percent. It’s also a bonus for the parasites of Wall Street.
The EPI paper concludes that the free trade agreements are job losers, but it doesn’t mention that these treaties are negotiated with this purpose in mind, time and time again.
Here’s a few other conclusions EPI came up with:
“The USITC (U.S. International Trade Commission) also estimated that imports from Korea (South Korea) would increase by about $6 billion to $7 billion, and that the U.S. trade balance with South Korea would improve by about $4 billion to $5 billion. In the year after KORUS (U.S.-Korea Free Trade Agreement) took effect, U.S. domestic exports to South Korea actually fell $3.5 billion. Projections for 2013 suggest no reversal of this trend.” That means the US lost jobs on the deal. And that means income was redistributed from the 99 to the 1 percent, which is precisely was negotiated to do. Thank you Wall Street Senator Ron Wyden, Wall Street Congressman Earl Blumenauer, Wall Street President Barack Obama, and you Democrats and Republicans who voted to shaft the 99 percent on behalf of Wall Street and the 1 percent. These treaties also massively exemplify the corruption of the federal government by Wall Street money, as well as the money of the rest of the 1 percent.
That’s why the folks are EPI came up with these conclusions:
“The tendency to distort trade model results was evident in the Obama administration’s insistence that increasing exports under KORUS would support 70,000 U.S. jobs. The administration neglected to consider jobs lost from the increasing imports and a growing bilateral trade deficit. In the year after KORUS took effect, the U.S. trade deficit with South Korea increased by $5.8 billion, costing more than 40,000 U.S. jobs. Most of the 40,000 jobs lost were good jobs in manufacturing.
There was also a big gap between predictions and outcomes for the North American Free Trade Agreement enacted in 1994: NAFTA was supposed to create 200,000 new jobs through increased exports to Mexico but, by 2010, growing trade deficits with Mexico had eliminated 682,900 U.S. jobs, with job losses in every U.S. state and congressional district.
Given the big gaps between promised and actual outcomes, the United States should stop negotiating trade deals and fix the ones we have.”
Check out the link below for the complete story.
Free Trade Agreements Have hurt american workers Claims that trade deals increase exports and create jobs are based on flawed trade models, and on distorted and one-sided interpretations of the findings of those models.–Economic Policy Institute
Posted in Economics, income redistribution, the Rigged Game, Uncategorized, tagged Economic Policy Institute, Federal government of the United States, Labor, minimum wage, Scotland, United States, Wage, Wall Street on Jam7000000amSat, 27 Jul 2013 11:21:55 +000013 10, 2010| Leave a Comment »
The folks at the Economic Policy Institute are making a strong case to raise the federal minimum wage. Doing so expands the demand for goods and services and therefore strengthens the weak economy, but there’s one thing the study does not suggest; Raising the minimum wage takes money away from Wall Street. That leaves them with less money to bribe politicians with campaign contributions, outright bribes, and perks such as golf trips to Scotland in an already massively corrupt US government, and that’s at virtually all levels: federal, state and local.
Click the link below for the complete story.