Updated: 4:58 p.m. Wednesday, May 4, 2011 | Posted: 4:57 p.m. Wednesday, May 4, 2011
The April 17 edition of the Dayton Daily News devoted many columns to the issue of jobs. The issue of jobs or the lack thereof was only partially explained. The root cause of our jobs catastrophe is the trade deficit. We have exported millions of jobs through the deficit.
Our current trade policies are built on “free trade,” a theory originally formulated by Adam Smith. Now, many years later, various versions of it are still being peddled without evidence that it works.
Now we have evidence. The evidence indicates that the theory doesn’t work. When the data contradicts the theory, we throw out the theory, not the data.
• Instead of greater wealth for all nations, the United States has enormous and growing trade deficits now, averaging $788 billion per year.
• The U.S. has not had a trade surplus in 35 years.
• Factory utilization is only about 79 percent.
• We have lost 4.8 million to 7.2 million jobs from this failed theory.
• When adjusted for inflation, wages have declined by 12 percent since 1975.
• Many major industries have been decimated, with about 23 percent of all manufactured goods sold in the United States now imported.
Instead of allowing this failed theory to continue destroying American lives, it’s time to impose some stiff tariffs, perhaps as much as 30 percent on China, 20 percent on Japan, Korea, and India, and 15 percent on all other nations.
Bring the jobs back from overseas.
Lawrence Briskin
Centerville
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