While the elections continue onward little attention is being brought to a huge proposition passing through congress, the Trans Pacific Pact or TPP. Stemming from the US governments knowledge of the need to limit the codependency of our economy on China, the TPP is a trade agreement that will allow for other South Pacific countries to import products to the United States with little to no tariffs, attempting to make it more cost effective for businesses to move production from China (who is not included in this pact) to other countries in the area.
In the short term the TPP is amazing it will lower the price of goods and spread production to multiple countries so that one country’s defecates will not be detrimental to ours. What could possibly go wrong with such a plan? Well it is obvious; it only treats the symptom and leave the cause to fester and grow.
The United States grow exponentially for a majority of its existence based on two factors, the resources native to the land and the vast amount of diverse land in the country. We were able to produce a majority of our own goods domestically based on the fact that the climates differentiate so greatly around the country allowing for a huge assortment of agriculture. The sheer size allows for ample rich farmland to supply the domestic food needed. The resources also allowed for the limitation of importation on raw materials and for the colossal growth of the industrial growth of the nation early on. The lack of importation and surplus of goods that were exported allowed for low unemployment rates and a powerful nation.
With the growing dependence on foreign markets, especially that of China, to supply cheap goods; factories transfer themselves oversees to take advantage of the cheaper labor rates in third world countries. The Government has allowed for the corporate backers to influence legislation to allow for themselves to make a bigger profit.
While the co-dependence of our economy on specifically China is terrible and a huge liability, the long term solution is not to just allow for other Asian countries to produce the goods instead but to reinvest in domestic info structure and incentivize the return of production to the United States. If we do this we can increase employment, increase wages and even undo some of the damage done to cities. Detroit used to be like a second New York City in the mid 1900’s, until most auto manufacturers moved their production abroad and left the majority unemployed and turning to crime as the only viable source of income. Do not let the US economy continue to suffer so that goods can be made cheaper and big corporations can line their pockets even more.
Our nation is in need of a long term solution, not just a quick fix.