When I was a kid, a steel mill employed alot of people, and they made good wages...almost double what the national average was.
Well, an oversea company started to ship in steel for a lesser price than the local mill could produce it. (Import)
Now most Americans were happy because all that mattered to consumers is that the same end product cost less. (You could by this wrench for $6 or pay $12)
Well normally the local steel mill would raise wages every year equal to the inflation rate or a little less. But to compete, they tried to skip a year and the laborers went on strike.
Well as they we're on strike americans continued to purchase the oversea's products, giving them a stronger foothold in the lobbyists pockets.
Now the local workers still made much more than most around them, but thought if they gave an inch, theyd eat a mile.......
Eventually the Mill closed and 3,000 guys had to get a job for half the pay they were used to.
But, we would have been fine according to the law of the free market if we simply had stopped or slowed purchasing the wrench, and the company would have adjusted the price to "what the market would bear"....it would have been a perfect law of "Supply and Demand"
But outside interests and kickbacks to politicians, CEO's and such made this impossible.
If Imports had been limited, the market would have found a balance. And of course Americans are always looking for the best value.(Wal-mart) so overseas companys who pay laborers .50cents a day have and ARE prospering and we build them everyday.......
This is why NAFTA and involvement in the UN, and wars that are none of our business, will destroy us. Yes, we are reduced to a "Service" economy because we went global and couldnt compete with other countries.
Do You know why Farmers sold out their land to developers? Because the prices for their food couldnt compete with imported food and we always chose the better value for our family. Add to this, the Developer offered a huge price for the farm and the Farmer saw a way out.
Ron Paul for President.....