Free Trade’s Heavy Cost
30th August 2022
This reality has been unfolding for a generation. Asian and European nations have long prioritized their export industries, helping them gain dominance in many markets, from steel and cars to semiconductors. By contrast, big American capital, bolstered by cheerleaders in the corporate media, sacrificed our nation’s communities and the personal aspirations of countless workers for the sake of greater profits.
Munger cites imported semiconductors, smartphones, and other American-branded tech as big wins for our economy. This may be true for the investors who own piles of big tech stock. The technology is also cool for consumers, if sometimes very pricey. But what did this system produce for the overall U.S. economy and the health of its workforce? Google, Microsoft, and the other oligarchic firms make virtually nothing here. Apple may be “headquartered” in Cupertino, but more than 90 percent of iPhones, iPads, and MacBooks are made in China, albeit “designed in California.” Despite their endless virtue-signaling, these corporations are indifferent to the national economy. Instead, many have become China’s ultimate cheerleaders and enablers, with venture capital firms raising billions to fund new firms in the Middle Kingdom—in other words, subsidizing the competition.
The current position of Europe due to the Russia sanctions demonstrates the problems that can arise from dependencies based on the assumption that free trade is free and will always be available. There needs to be more thought and discussion about this.