Archive for October 28th, 2013

Here’s the real dirty little secret the US corporate press doesn’t want you to know.The biggest trade deficit the United States has is with US corporations exporting manufactured goods and services from China, Pakistan, Vietnam and Mexico to the United States. That’s right. The US trade deficit is with Nike, Microsoft, Apple, NCR, and hundreds of other US corporations. They export hundreds of billions of dollars worth of goods to the United States every year from their facilities, contractors and subcontractors in other nations. Perhaps as many as forty million of those jobs overseas used to be in the US.

US corporations manufacture goods and services overseas in order to redistribute income from the 99 to the 1 percent. Take a look at the chart below. Notice the trade deficit starts to spiral, especially after 1980.

Now take a look at the chart below. Notice that the amount of income going to the 1 percent begins to spiral upward at about the same time as the US trade deficit does.

The United States has had a trade deficit with other nations since 1976. That means US businesses have imported more goods from other nations than has been been exported every year since 1976. In 1975, the US trade surplus was over $12 billion. In 2012, the US trade deficit was over $534 billion, and over $741 billion in manufactured goods. What happened?

It began with electronics in the 1950s, when those American jobs manufacturing radios and televisions and their parts were exported to Taiwan and elsewhere. The things made in Taiwan were imported into the US. By the mid 1970s, steel and automobile companies were exporting US jobs, and importing things. Free trade agreements paved the way for these jobs to be exported. These agreements also paved the way for US corporations to create jobs overseas, rather than in the US. In other words, the US primarily exports jobs to other nations, rather than goods and services.

The reason the US government has done this is to redistribute income from the 99 to the 1 percent. The difference between the old US wages and the new lower overseas wages goes into the pockets of the rich via higher corporate earnings, rising share prices and surging stock prices. Notice in the graph below that the Dow Jones Industrial Average, (an average of the stock prices of the thirty top rated US publicly trade corporations), began to surge in the early 1980s, which coincided with the growing US trade deficit, and the massive growth of income being redistributed from the 99 to the 1 percent. Notice income growth for the 1 percent surged during the mid 1990s, the Dow began growing even faster, and the US trade deficit continued to surge. Those surges coincide with Nafta, which took effect in December 1994. That treaty made it easy for US jobs to be exported to Mexico, and so they were.

Historic Dow Jones Average

Now President Obama, and Wall Street senators such as Mitch McConnell and Ron Wyden, want to redistribute more income (and political influence) from the 99 to the 1 percent via the Trans Pacific Partnership (TPP), the largest income redistribution scam of all time. The US trade deficit will explode with this treaty, whole industries (such as the remains of the textile industry) will be exported, more and more income wil be redistributed from the 99 to the 1 percent, and the Dow Jones Industrials will surge. None of this is good economic policy. The president knows this, McConnell knows this, Ron Wyden knows this.

In 1980, the 1 percent took home 7 percent of all the income produced in the US. Nowadays, thanks to these treaties, that figure ranges between 21 to 31 percent, which means the 99 percent have less money to demand goods and services, which is why the economy is so weak. Wealth has also been massively redistributed from the 99 to the 1 percent. Check out the video below.

The result of free trade income and wealth redistribution treaties has been to wreck the US economy, and to corrupt the US government, as well as many state and local governments in the process. The economic game has been rigged against the 99 percent using the money redistributed to the 1 percent via trade treaties. The Trans Pacific Partnership is intended to be a knockout punch to the 99 percent. It’s time to end the madness. Take to the streets, call the people who are supposed to represent you in congress. Let them know you want this insanity stopped.


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