Capitalism in crisis. (Letters to the Editor).
The underlying cause of the present dislocation of our economy has been the export of our industries. After President George H. Bush was unable to put through the North American Free Trade Agreement, he was removed in favor of President Clinton, who promptly suborned enough Democrats in Congress to join with most of the Republicans in putting it through. At the same time, Clinton and others made arrangements for China to become America's chief supplier of foreign goods. The result is an increasing deficit of trade, now approaching $500 billion per year, which is collapsing both the U.S. economy and the dollar. Our demand for foreign goods must and will shrink, and the foreknowledge of this prospect is depressing stock markets in Europe and Asia.
None of this could have happened but for the infamous Bretton Woods agreement of 1944, whereby other countries agreed to accept dollars as a reserve currency equal to gold. When America's increasing deficits of trade led to abandoning all connection to gold and a devaluation of the dollar, foreign central banks had too many dollars to abandon them as a reserve currency. Now the situation is much worse, for our cumulative deficit of trade is in the trillions, and the inflation which we have exported is coming back home. How soon before we follow in the footsteps of Argentina?
Worse still, the export of jobs and capital continues even as we slip further into recession. This process can only aggravate both the recession and the decline of the dollar. At some point we shall face a situation in which Foreigners cannot sell us their goods because our debased currency cannot buy enough of them. That will someday be called a worldwide depression.
Add to this the depressing effect of an insatiable government whose taxes have forced most women into the workforce at the expense of giving up childbearing or the raising of their own children, not to mention the possibility of saving some income.
One must not overlook the burdens imposed by socialists in the name of the environment. These are legion. No reasonable use of cost/benefit analysis is made as ever more drastic regulations are made in the name of protecting the environment.
Subsuming all of the above and worst of all is the cynicism pervading our atheistic ruling classes and our institutions. Capitalism is failing, not because of inherent defects but because of men who believe that greed is good.
JUAN J. RYAN
New Providence, New Jersey
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|Publication:||The New American|
|Date:||Sep 9, 2002|
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