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Death for America’s Small Towns

July 27, 2016 By Richard C. Young

By Stephen Barnes @ Shutterstock.com

Originally posted January 24, 2014.

Sounds dramatic and scary, I know, but Debbie and I witness this riding our Harleys around the country, especially in liberal New York and New England. We are aware of two culprits: one, the Internet; and two, political fair trade delusions. The bought-and-paid-for politicians in Washington apparently believe that passing fair trade laws leads to fair trade. And Washington-style fair trade implies a better economic environment for Americans. Neither is true, and it’s hard to believe that politicians don’t know this. Trade can be fair when all players are operating on a level playing field and are playing by the same rules. But a quick spin of the globe will find that neither required condition exists.

The American dollar is the world’s reserve currency. As such, countries have the option to devalue their currency against the dollar, which immediately makes a devaluing country’s exports cheaper for Americans to buy and retards import growth in the devaluing country. In a similar vein, a country, like China, can sit on its currency and refuse to let it seek normalized purchasing power parity against the dollar. Then there is the ongoing issue of massive wage differentials and nationally subsidized industries. China is the big kahuna in both instances.

So no, fair trade laws do not mean fair trade, not by a long shot. America has lost millions of good paying jobs over the presidential tenures of George Bush and Barack Obama. As Debbie and I ride our Harleys through one small town after another, we are shocked by the shuttered factories, empty storefronts, and for sale signs that from season to season never seem to go down. It is truly depressing. As a country, we have the Washington politicians and the socialist-oriented state governors (especially in New York and New England) to blame. And until such time as Americans decide to return to the federal republic small government model clearly outlined in the Constitution, America’s small towns will continue to shrivel and die. Here Pat Buchanan elaborates in detail.

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Richard C. Young
Richard C. Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
Richard C. Young
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