The new World
While President Obama gives a press conference about health care reform being the central point to the recovery of the national economy, he chooses to ignore one of the biggest causes to the current recession. Free Trade.
During the 1990’s Free Trade was seen as a benefit for the United States. While there was a loss of manufacturing jobs, free trade was seen mostly as a good thing. Inflation was kept low because of cheap labor provided from nations such as China and Vietnam. It also spurred more business opportunities to for economic development for millions of individuals.
As a result of the modernization of many developing nations, the price of many products such fuel and food have gone through the roof. The threat of cheap foreign labor has kept wages down, and job losses to other nations have extended well beyond manufacturing industry to include the service and medical.
These millions of loss jobs then place a bigger strain on local and federal tax revenue. They are no longer able to maintain the roads and the bridges as they once did. This places any American who uses public transportation, drives a car on a road or over a bridge in greater danger of being killed in serious accident due to negligence. The United States now has to hit up China for money to help pay for the wars in Iraq and Afghanistan.
The jobs that are lost in the United States end up in China, where a corrupt one party system is able to flourish economically. Chinese workers in the manufacturing sector are paid with wages that are so low, that they barely make enough to put their children through school. Many workers do not receive wages at all as they are scammed by possible employers.
China is allowed to practice repression of Freedom of Religion and censorship since they face no economic reprisal.
The rest of the world is now hurting as a result of the weakness of the American economy. While many of these nations, including China, benefitted from manufacturing jobs coming from the United States. Due to the higher costs for food and gas, and the weak wages resulting from foreign competition; Americans, the biggest consumers in the world, no longer have the same spending power they once had.
As a result, China and other nations around the world, are suffering economically as well.
If the recession were to get worse around the world, people may turn to disobedience, as what happen during the overthrow of the government of Iceland, to express their disdain for the economic plight.
This disobedience among the people could then cause a corrupt government, such as China, to do something desperate for its own survival. This act could be to build up the military to spur economic development. And then attack a weaker sovereign nation to inspire nationalistic pride among the people. Thus, following in the footsteps of WWII.
To save America and prevent WWIII, America needs to adopt and promote a fair trade system around the world.