Economic

[KazooSkinsFan]

Trade barriers are an attack on American business, they are a blockade of American business by politicians. Blockades are not military invasions, they are just restrictions of trade. Just as trade barriers are only restrictions of trade.

Businesses make money by providing economic value. The company generates revenue. Subtracted from revenue is the cost of producing the product, the employees, utility bills… That difference, the profit, is the net addition to the economy the company produces. That money is invested in new projects, distributed to debt holders, equity holders, etc. and is the growth in our economy.

When businesses trade overseas, they trade to increase that profit. If they can get components or labor or other goods or services overseas more cheaply then they can locally, they trade and increase their profit. That grows our economy. Outsourcing jobs to India is good for our economy as long as it’s done by free choice of profit seeking companies. Chasing profit is done by increasing economic value, the difference between revenue generated and the cost to produce it.

The economy is damaged when economically poor decisions are forced on the economy. Every time government warps free market with taxes and regulations, companies become less efficient paying and avoiding paying the taxes and fulfilling the regulations. This makes it artificially more attractive for American companies to do manufacturing and labor overseas to avoid the economically oppressive policies of the American government.

So, do politicians recognize their failure and reduce regulation and taxes to lure them back? No, they increase their economic blockade on business. When you are voting for Democrats or idiots like Pat Buchanan and Ross Perot, you are voting for people who are putting ships in our harbor and blockading America. Just as an enemy blockading our harbors, they are destroying our economy when they do it. The difference is when an enemy does it they are attacked and when Americans do it to us they are sadly cheered by many Americans.

And that is why the Chinese are currently eating us for lunch. Right now they are opening their businesses, not restricting them. Will it last? We will see. Political power is intoxicating.