December 13, 1999

 

WTO, ECONOMICS, AND REALITY

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The World Trade Organization, successor to the General Agreement on Tariffs and Trade (GATT), really came into prominence, the week of November 29th in Seattle, Washington. WTO's mission, to supervise and liberalize world trade, was overshadowed by massive, and sometimes absurd street demonstrations, that led to the resignation of Seattle's police chief, Norm Stamper.

Free trade between vastly different countries creates many issues...

While the unions are demanding protection of their high wage jobs, exactly who is the customer that is willing to pay more to make this possible? How many of the union protesters were wearing clothing manufactured in America?

The environmentalists were upset, but I'm not sure at what. Those protesting high-tech agricultural methods ("frankenfoods") don't seem to understand that such progress means that less land would have to be cleared for farming, as yields per acre are greater.

Then there are those who hold that it would be environmental disaster if all the poor nations were to come up to our standard of living. Think of the environmental impact, they say.

What incredible arrogance!!

Presumably, the sweatshop workers that other demonstrators are trying to protect should not be allowed to have their living conditions improve, since too many resources would be utilized. Only WE should be allowed to live the dream.

Such talk betrays a profound lack of appreciation for the human spirit, and man's ability to improve his lot.

In the late 19th century, it was concluded that New York City could not sustain any more growth, since there was no more room for horses, to say nothing of the horse manure.

But, more fundamentally, the argument that those third worlders are better off using less resources, and are happier, is foolish in the extreme. If we were visited by an extraterrestrial much more advanced civilization, would we not want to take advantage of some of the gadgets, even if we didn't fully "understand" them? What office worker of the 1920's would rather not use a 1990's computer?

As far as resources, the history of mankind is replete with examples of new technology coming in to "save" us from running out of the old. With regards to food, there is certainly NOT a shortage.

The world's current agricultural capacity can easily feed more than 50 billion people. That many go hungry is a function of politics, civil wars, and corrupt governments.

Is the Earth overpopulated? Hardly.

The entire population of the world could be placed in single family dwellings, four individuals to a house, with a nice yard, in a typical middle class American layout, and take up only the area of the Canadian province of Alberta.

Beverly Hills, California has a much higher population density than Ethiopia, but it is surely not a problem.

That many are poor, and are living in squalor, is, again, a function of politics, civil wars, and corrupt governments. We can also add to this: unspeakable ignorance on the part of many of those blessed with the bully pulpit.

Care for an example? Some years ago, "pundit" John Chancellor was touring the Soviet Union. He noticed that there was a shortage of shoes, so kids couldn't dress properly for school. There was a shortage of medicine, so people could not get proper health care, there was a shortage of phones, so people could not get connected, and there was a shortage of apartments, so many had to squeeze into tiny living quarters.

This had nothing at all to do with Communism, he said. There were just shortages!!

We would be better off protesting against our corrupt and incompetent leaders and taste makers, wherever in the world we may be.

To counter his extreme unpopularity at home, Yeltsin has made war on tiny Chechnya, and damn the civilians. Clinton protests, but, of course, he did the same in Serbia.

Is it justice to grant Most Favored Nation trading status to the brutal and corrupt regime in China?

And let's not forget the pathetic tale of young Cuban, Elian Gonzalez, whose mother died trying to get him to America. You would think that the mere fact that people risk their lives on a daily basis to leave Castro's miserable island would be enough to negate anything old Fidel has to say. But, incredibly, the U. S. is in the midst of negotiations that would provide for return of Cuban refugees if they didn't quite make it to Miami, but allow them to stay if they did arrive successfully! Elian is caught up in that quagmire, and God knows how it will turn out.

Every citizen of the world can recite examples of how he has been sold out by his leaders. Nothing new here.

So, it really comes down to this: A free market capitalist economy, even as practiced in this country, gives its people strength enough to overcome corrupt and incompetent leadership. Would that other nations had it as good as we do.



 

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