Bernstein, Aaron (2004) “Shaking up trade theory” BUSINESS WEEK, 12/6 116-120.

Gergen, David (2004) “Speaking truth to power” U.S. NEWS & WORLD, 12/6 88.

Trade theory in the 21st century is coming into a crisis including the likes of Paul Sameulson, the premier free trade theorist.

Ricardo noted that both countries prosper with free trade, however Sameulson and others now feel that with the computer and related technology, change can happen so fast that the USA can grow and grow and be poorer for it. As we grow, the stock market increases as the general population of white and blue collar workers suffer. Out go good jobs to be replaced with low paying jobs. The market grows, CEO’s make more but the remaining do not benefit from the free trade.

It is the CHINA PRICE that kills jobs now. Retailers must cut costs from 30 to 50 percent. The rapidity of China’s ability to change and move into new markets is totally beyond the usual 4 or 5 years. It is now a matter of months.

Add to this that computers can out source work at the speed of light and one finds workers, administrators, and white collar Republicans facing minimum wage jobs. Unless they have graduate work in fleeting but necessary high tech, they face a downward spiral.

In the mean time, the dollar rapidly devalues as the administration spends more than it has. Greenspan, Volker, and Peterson, all political money men want Bush to start paying back the debt. This also applies to Republican fiscal conservatives.

BUSINESS WEEK suggests that the change is so fast that high skilled jobs can be taken away as fast as low skilled jobs. This leaves a continuous excess capacity driving wages ever downward.

What to do? The China price and the China dollar are undervalued by 30%. Change that. China
pirates American intellectual property. Stop it. Cut farm subsidies. Cut pork barrel. Pore more money into reeducation of workers and wage insurance. Cut the debt.

Do you think those things are going to happen? You answer that.