Sunday, July 6, 2008

Argentina Export Tax Exemplifies Failed Western Trade Policies

While economists with fat degrees and politicians with fat wallets recommend and deliver most tax cuts and bail outs to big business and pander to hostile trading partners. The Export tax on being forced through by the Argentinian government, that threatens to destroy is agrarian population and industry and drive much of it's population into poverty is just the latest example of the devastating effect western trade policies in general and CAFTA specifically are having on emerging nations.

There was a time when nations with powerful economies balanced higher domestic production costs with tariffs on imported goods. Higher costs in the U.S. were balanced by fatter pay checks, more opportunity for the average American. Taxes were offset by the income the federal and state authorities generated off of these tariffs. As the largest buying force on the planet this was our weapon to force other countries to raise there humanity.

America and Western Europe stood as shining examples of what could be. A man could afford to raise a family and send his children to school even if he did not have that opportunity. The possibility to sustain our growth and offer other nations a chance to enter into the fold--by lowering tariffs-- as they raised there minimum wages, worker treatment and environmental policies. Forcing a leveled playing field with buying power.

Tax incentives would be given to keep companies on American shores and to those companies who, on there own or in co-operation with institutes of higher learning pushed the envelope on technology and sciences.

Idealistic to be sure but no more idealistic than the idea that a bunch of greedy businessmen and politicians let loose on a world with no system of economic balance other than debt would do any better.

The arguments against this usually ran along the lines of opposition to government control. There is always government control.

Argentinian Farmers are the next to take the brunt of these failed global policies square on the chin. The voids in pricing instead of being balanced by trade policies in the U.S. will now be filled by taxes leveed on these farmers. Prices on the global market for there products will go up, but not before many of these farmers are wiped out.

Major corporations will step in and buy these farms at pennies on the dollar, and a section of the Argentinian population that had an opportunity to make real gains will be forced under the boot strap of economic slavery.

Forced labor at the end of the whip is no longer fashionable or sustainable as the average person has more access to information and communication. The new slaver traders are the debt dealers.


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Mr. Harsh Guy