Another view on trade.I just opened the January l0 issue of THE NEW AMERICAN and read the letter to the editor" rebutting William F. Jasper's article "Foreign Nations Target U.S. Steel The United States Steel Corporation (NYSE: X) is an integrated steel producer with major production operations in the United States and Central Europe. The company is the world's seventh-largest steel producer ranked by sales (see list of steel producers). " (November 29, 2004 issue). Jonathan Ingram, the author of the letter, does indeed present an interesting point of view. However, there is a very simple principle that he has overlooked. This one principle seems to escape all those who present similar "open border" points of view. That principle is that real economic wealth comes from converting raw materials into finished products for which a demand exists. Domestic manufacturing is the foundation of domestic wealth. It is true that imported steel benefits American consumers of steel--in the short run. But what is routinely overlooked is that no wages are paid to Americans, and no wealth is built in this country, from a steel manufacturing industry that lies across the ocean. This leads to dwindling dwin·dle v. dwin·dled, dwin·dling, dwin·dles v.intr. To become gradually less until little remains. v.tr. To cause to dwindle. See Synonyms at decrease. purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. amongst steel workers. If manufactured domestically, steel prices would increase. But so would the number of good-paying jobs required to man the plants that produce it. Good-paying jobs increase the purchasing power of those that have them, thus countering the resulting higher cost of consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and . This is a self-balancing proposition, the net result being an increase in domestic wealth. The myth that "our economy would collapse without the cheap imports" historically doesn't hold any water. Before offshoring
Offshoring describes the relocation of business processes from one country to another. was a household word the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. won two world wars and put men on the moon--not once, but several times. That was well before the depletion of American jobs and the flood of goods produced offshore. Cheaper goods manufactured overseas result in lower-paying jobs here, while more expensive goods, manufactured in America, produce good-paying jobs and build wealth in this country. So a choice is in order. Cheaper, offshore goods, low-paying jobs, and a depletion of wealth--or more expensive items, higher-paying jobs, and increasing domestic wealth. I choose the latter. GREGORY M. HAYDEN Lewisville, Texas Lewisville is a city in Denton County and Dallas County, Texas (USA). As of the 2000 census the city had a total population of 77,737. With strong population growth continuing into the new millennium, the U.S. Census Bureau gives a 2006 population estimate of 94,589. |
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