The Trans-Pacific Partnership is an international income and political power redistribution scam falsely marketed as a free trade agreement, which is exactly why President Obama, Wall Street Senator Ron Wyden, as well as most of the Republican Party support this scam. It will redistribute massive amounts of income from the 99 to the 1 percent.
According to economist Thomas Piketty, in his seminal work, Capitalism in the Twenty-First Century, the United States has a record “level of inequality of income from labor (probably higher than in any other society at any time in the past, anywhere in the world, including societies in which skill disparities were extremely large)….”
Former Federal Reserve vice chairman Alan Blinder has calculated that 22 percent to 29 percent of all U.S. jobs could potentially be offshored if the TPP is approved by congress. 25 percent would translate to 36 million workers whose wages are in competition with those in largely lower-income nations. Of the 11 nations with which the United States is negotiating the TPP, nine have wage levels significantly lower than ours.
The difference between the old higher US wages of the jobs exported, and the soon to be lower wages overseas, would go straight into the pockets of the super rich via higher dividends, share prices, and soaring corporate profits. In addition, for a job well done in offshoring jobs, CEOs will receive raises and bonuses. Currently, on average, US CEOs receive a record 475 times more in pay than the lowest paid workers in their companies. See The Ratio of CEO to Average Worker Pay
According to Harold Meyerson writing in the Washington Post, “By avoiding discussion of the consequences that trade deals with developing nations have on U.S. workers, not to mention our trade balance, defenders of free trade are indulging in the worst kind of imperviousness to facts. But when the case for free trade is coupled with the case for raising U.S. workers’ incomes, it enters a zone where real numbers, and real Americans’ lives, matter. In that zone, the argument for the kind of free-trade deal embodied by NAFTA, permanent normal trade relations with China and the Trans-Pacific Partnership completely blows up. Such deals increase the incomes of Americans investing abroad even as they diminish the incomes of Americans working at home. They worsen the very inequality against which the president rightly campaigns.
There are ways that a developed nation can trade with the developing world without gutting its own economy. Germany has been able to protect its workers not only through the advantage of having the euro as its currency, but also by requiring its corporations to give their employees a major say in their companies’ investment decisions and by embracing a form of capitalism in which shareholders don’t play a major role. Were the United States to adopt this form of stakeholder capitalism, then its trade accords wouldn’t necessarily come at the expense of its workers. Absent such reforms, however, trade deals will only negate our attempts to diminish inequality.”
If the TPP is approved by congress and signed by the president, only the rich will benefit, and at the expense of our jobs. But there’s more. Those lost jobs pay our taxes, and so the TPP will lower the amount of tax dollars going to schools, fire, police, parks, recreation, road maintenance, and DMV services, among other things.
So we know President Obama, Wall Street Senator Ron Wyden, and the Republican leadership in congress (think Mitch McConnell and Orrin Hatch) are intending to rob from the middle class and give to the super rich, and those are the people they serve.
For more on what Harold Meyerson has to say about the TPP, click on the link below.