In normal times, market warfare is kept at bay by such institutions as the World Trade Organization
and more importantly the profit-induced cooperation of the rich
countries. In times of deep recessions, however, these niceties fly out
the windows. The banks and corporations that ultimately control
politics in each country demand bailouts and other forms of protection
from the cruelty of the once-friendly "free market. (Will Obama Start
the Next Trade War? February 5, 2009).
Some U.S. corporations may find that having a seller's monopoly over the highly valued U.S. market " by imposing tariffs " is more profitable than cooperating with the Chinese. But these U.S. corporations aren't mom and pop local producers, they're world exporters. And while they're making super-profits by blocking Chinese imports, these U.S. companies subsidize their exports abroad by the monopoly profits at home, which is considered "dumping, causing further retaliatory measures from the Chinese and other countries suffering from the competition.
Not only does protectionism create global conflicts, but it also destroys the jobs that some claim it saves. When tariffs cut off imports to the U.S., consumers are forced to buy more expensive products, creating inflation that hurts the economy as a whole. More importantly, when U.S. corporations are shut off from foreign markets via retaliation, job slashing and wage cutting are the inevitable results.
It's true that free trade is essentially an agreement between corporate-controlled governments to unleash raw, unbridled competition among the world's corporations. Such a system deserves zero support since workers are constantly asked to make sacrifices so that the company they work for can survive. Protectionism, on the other hand, equals a breakdown of the global capitalist system, creating a vicious battle between corporations for access to the best markets, rarest raw materials and cheapest labor.
As long as the economy is controlled by the super wealthy and produces
things only for their profit, neither free trade nor protectionism
should be a concern for workers. We cannot afford to link our fate
with that of "our corporations, since the corporations are not ours to
begin with. Their profits are raised at our expense by lowering wages, administering frequent layoffs, and reducing benefits.
Groveling to politicians to "protect American corporations is a losing strategy for workers. Instead, workers must demand and fight for living wages and good benefits from their employers. If a company threatens to move to a place where labor is cheap, workers are not powerless. In Latin America workers have developed militant methods to keep jobs in their community: mass protests, strikes, and factory occupations are used interchangeably to assert control over their workplace. As long as workers see themselves in competition with workers in other countries, ALL workers will inevitably be caught up in a race to the bottom. Companies all over the world will tell their workforce that in order for the company to survive foreign competition, the workers will have to accept lower wages and reduced benefits. But if workers begin to forge alliances across borders, then we can all begin to demand that our wages and benefits rise collectively, and the corporations will have no place to go.
Shamus Cooke is a social service worker, trade unionist, and writer for Workers Action (www.workerscompass.org). He can be reached at shamuscook@yahoo.com
Some U.S. corporations may find that having a seller's monopoly over the highly valued U.S. market " by imposing tariffs " is more profitable than cooperating with the Chinese. But these U.S. corporations aren't mom and pop local producers, they're world exporters. And while they're making super-profits by blocking Chinese imports, these U.S. companies subsidize their exports abroad by the monopoly profits at home, which is considered "dumping, causing further retaliatory measures from the Chinese and other countries suffering from the competition.
Not only does protectionism create global conflicts, but it also destroys the jobs that some claim it saves. When tariffs cut off imports to the U.S., consumers are forced to buy more expensive products, creating inflation that hurts the economy as a whole. More importantly, when U.S. corporations are shut off from foreign markets via retaliation, job slashing and wage cutting are the inevitable results.
It's true that free trade is essentially an agreement between corporate-controlled governments to unleash raw, unbridled competition among the world's corporations. Such a system deserves zero support since workers are constantly asked to make sacrifices so that the company they work for can survive. Protectionism, on the other hand, equals a breakdown of the global capitalist system, creating a vicious battle between corporations for access to the best markets, rarest raw materials and cheapest labor.
Groveling to politicians to "protect American corporations is a losing strategy for workers. Instead, workers must demand and fight for living wages and good benefits from their employers. If a company threatens to move to a place where labor is cheap, workers are not powerless. In Latin America workers have developed militant methods to keep jobs in their community: mass protests, strikes, and factory occupations are used interchangeably to assert control over their workplace. As long as workers see themselves in competition with workers in other countries, ALL workers will inevitably be caught up in a race to the bottom. Companies all over the world will tell their workforce that in order for the company to survive foreign competition, the workers will have to accept lower wages and reduced benefits. But if workers begin to forge alliances across borders, then we can all begin to demand that our wages and benefits rise collectively, and the corporations will have no place to go.
Shamus Cooke is a social service worker, trade unionist, and writer for Workers Action (www.workerscompass.org). He can be reached at shamuscook@yahoo.com
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