In itself there is nothing wrong with free trade provided it stays on target of mutual benefit for participating nations as a whole. Unfortunately, actual practice loses sight of this. Canada, for instance, does benefit in its importation at bargain prices — but at our expense — of pharmaceutical products from its neighbor, while it exports “American” cars. Trade with China benefits a hungry consuming nation via — Wal-Mart, et al — but does little for the Chinese people working at sub par wages and precluding any substantial rise in their living standard so they can by US products. Furthermore, China trade directly affects the standard of living in the US because better paying industry jobs are being wiped out. It is of little comfort to the productive worker who — accustomed to $20 an hour — can now spend his $7 an hour at Wal-Mart. Nor is discount consumption any comfort to the taxpayer and his children who have to pay off the debt to China.

Where is the benefit to Mexico where its people can now work for American industry in their own backyard, yet for wages little more than those of China? The continuing invasion of our southern border flies in the face of NAFTA supposedly helping underdeveloped countries.

In the meantime, the US, as an excessively consuming nation steadily diminishing its own industrial base except for defense — and even that is in jeopardy vis à vis Chopper One — will eventually run out of gas and Wal-Mart and its ilk will be the future distribution centers for government bread lines. It is imperative that the US regain its industrial powerhouse, particularly in small communities because only industry is capable of doubling spin-off employment so necessary for small town economies.

Copyright © 2005 Richard R. Kennedy All rights reserved. Revised: February 3, 2005.

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