US Congressman Alan Grayson explains in the video above how the regime of free trade is destroying the middle class by redistributing its income to the 1 percent. The fourteen largest trade deficits in the history of the world are the last fourteen US trade deficits. That neatly corresponds to the current imbalance in income and wealth inequality. That’s because they’re connected, tightly entwined, like the fibers of ropes, or the financial links between politicians and their financial backers.
Grayson asks, “What sane person could look at the trade deficit numbers and conclude that America needs more free trade?”
Yet many politicians support the Fast Track Authority and the TPP, mostly due to political corruption. So is their support of increased income inequality and rising trade deficits caused by insanity or corruption or stupidity? Try the second reason.
I disagree with some of Grayson’s conclusions. One of the things he doesn’t understand is that the US trade deficit is largely caused by US corporations, which ship jobs overseas, and then export these products to the United States. The difference between the old higher wages and the new lower foreign wages goes straight into the pockets of the super rich via higher corporate profits, rising dividends and share prices.
This is why the US trade deficit fits neatly in with growing income inequality. Trade deals are a nifty and shady way of hiding this income redistribution and how the 1 percent achieve it.
That means trade deals have never had anything to do with trade, except as a coincidence to legally paving the way for US corporations to ship jobs overseas, or to create jobs over there rather than back here.
So when a trade deal comes along, like the Trans Pacific Partnership, and this deal will likely increase the already massive US trade deficit, it’s a sure sign that it negotiated to redistribute income from the 99 to the 1 percent, and income inequality will increase correspondingly, and this is what the TPP is all about, and nothing more.