Softwood, Free Trade, et al
I’m no expert on free trade, but I have my first- hand doctorate in watching
paychecks dwindle in purchasing power logic. Logically, I don’t understand
how two participating Countries can make free trade work if they are not on the same playing field.
Leaders of both Countries can’t claim their respective Countries are both
reaping large benefits over each other by large margins in the realm of free
trade, if it is a level playing field. Even then, someone is less than
honest. How can their combined economies be greater than the sum of the two?
In addition, domestic consumerism slices of the whole economy pie cannot be discounted in such ‘free trade’ unless the domestic industry of one nation is completely serving the domestic consumers of the other nation and vice versa….(an un-likely prospect to be sure, especially in population
differences of hundreds of millions).
Such an unbalanced state breeds heavy inflationary pressure to bear on the
home domestic market and price cutting, and profit gouging, to gnaw at the home industry and domestic employment rate of the foreign country.
In the case of Canada and the USA, I can never see it as becoming a truly
level playing field because there is no political will to do so, not to
mention demographic possibility, though there is strong distrust,
nationalism, and protectionism sentiment on both sides and let’s face it a
desire to make serious coin (like they can be faulted for that) on both
sides, on the part of industry and unions who when it comes down to it…
would be mostly ambivalent on exactly how that is politically, accomplished.
The way Canada has felt this in practice in the past is that her industries
have been able to export cheaply (if not in a dumping manner) to a large
American market
Currently, by the (reality) numbers alone, Canada is (and always did)
greatly benefit on the export side of the ledger with the United States. On
the other hand there doesn’t appear to be an overtly American invasion of
eagle stamped products into Canada….. which on the whole is not good for
the Canadian consumer, even with the exchange.
For example dairy products in New York State are half the price of the same products in Ontario in a mostly closed industry previously awarded to, and tightly controlled by, the dairy farmers themselves who make all the rules and set their price.
Certainly, not good for Canadian consumers are products that are sold less
expansively to the giant American market than to the domestic market. It
would not be a first for Canadian consumers to purchase products south of
the border for less than the retail cost in Canada even though the product
was produced, or originated in Canada.
Since the (defacto) beef and lumber trade embargoes via free trade ignored
hearings and beef import regulations have been imposed on Canada, domestic
prices in Canada have only gone upwards particularly in the softwood
industry whereas one might have expected bargain clearance prices of
stagnate and The bloated inventories…go figure. These were/are huge but
‘artificial’ industries, as it were, with no comparable domestic market by a
long shot and all but wholly dependant ..on foreign markets. They completely
collapse as does their foreign (fickle susceptible) market and subsequently
fall back on the home governments and home market price increases to try and
make up a bare bones operational difference to ride out such storms.
It’s pretty hard to demand anything of a super power trading partner when
you’ve been the one making the nightly bank deposits. It’s like telling the
customer, you’re going to punish him for not buying ‘enough’ from you. And
then have your sales clerk call the customer “a rotten bastard on top of
that” as manager Martin’s clerk did.
It can’t be a level playing field when Canada has actually tried to keep the
domestic dollar down (particularly under Chretien who wouldn’t balk when the
dollar came down to kiss 50 cents) and refuses to adopt the American dollar.
Nationalist pride begone.. a liberal socialist would sell his soul, never
mind.. his mother, baby or country for an American greenback.
In addition, Canada automatically unfairly subsidizes industries by not
taxing for national defence, world peace policing, defending against enemy
espionage, and cult terrorism like the United States (lone) free world super
power, is expected to and does.
Not that Canadians are not taxed higher than Americans including pay back
the debt essential service charges (read taxes), and new Ontario ‘earmarked’
health taxes that’ll end up like taxes that were supposed to be earmarked
for rubber recycling and road repair etc. but socialism is a chosen path of
Canada, self defence is a must for both countries and Canada has long been
AWOL and mockingly so, (see missile defence co-operation).
How do Provinces and a Country still head for the hole with novel or
‘exciting’ ways to increase taxes and expand ever new gambling schemes
lotteries, casinos etc?
Easy… governments don’t make money, private industry does. Aside from
money imported which parts (of) leave the country and go back to parent
foreign- owned companies, or are invested or ‘protected’ under foreign flags
(see Martins shipping company which has to be protected from himself while
wearing the top hat) money can only move around.
As some economic sector of the nation collects more than it should whether
it be labour, government, poor class, middle class thru inflated real estate
costs etc., industry banks insurance or other business…….. another
sector of the same economy bubble, is paying for it. It’s the same same
general principle of good solid broad- based opposing or augmenting mutual
funds…. if one drops another rises with a slow but overall steady rise.
Not to intend to sound crass, but the World Trade Centre is destroyed and
the insurance industry bottoms out, however the demolition/construction
industry spikes upward shortly afterward.
Many people who lose their money gambling can’t contribute to the
Country(’s) economy as cash consumers very well, and it would not be unheard
of for the poor to lose all they have gambling, thus leaving their children
if not themselves to be looked after in some capacity by the State which
runs the gambling industries, except privileged native reserves, of course
who still require large amounts of additional government money tax breaks.
Paul Gordon
Cannington Ont.
