Economics

If you follow the news coverage of this election cycle you will think that the most important issue that the voters care about is Donald Trump’s vs Bill Clinton’s affairs and sexual misconduct. In reality, this is all noise that has zero chance of affecting the lives of citizens. We have a legal system where crimes such as sexual assault and rape are supposed to be tried, where people can be convicted by juries of their peers after adversarial trial but the media focus on trying these crimes instead of the courts because they get good ratings and divert people’s attention from the real issue.

The real issue that affects America is the lack of free market in many fields that leaves people victims of monopolies that prey on them. In this post, I will touch on some of these areas and show why the lack of free market is hurting our country.

Trade

Many people on both the left and the right argue that our current trade deficit is caused by our trade agreements and blame the decline in manufacturing jobs on free trade. Trade is not the reason for this decline but it is the factor that exposed the weakness in the American industrial field which is the high cost caused by the taxes, regulations and labor laws that are enforced by the different levels of government. The cost of the government policies prevents the free flow of labor and capital to many industries such as clothing, furniture, and electronics because it is very hard to compete with cheaper imports coming from countries that don’t have the same tax, regulatory and labor burden. There is the wrong way to handle this issue by going into protectionism which will shield our industries from global competition while raising the cost of consumer goods and making all of us poorer. The right way is for the government to realize that it needs to free the American business from these burdens and dramatically reduce taxes and regulations burden and ease the laws protecting labor unions and restricting the flow of labor to the most productive use.

Many Trump supporters point to the foreign governments’ unfair trade practices such as currency manipulation and dumping of cheap products. I think that we should respond to such practices but not before we make sure that our government does everything it can to remove the obstacles facing our industries.Read More »The problem with modern America