Tag Archives: trade war

Don’t forget the culture war is economically motivated

The culture war has been front and center for over a decade. Donald Trump’s election in 2016 was as much a reaction to it as it was about any of his policies. And the Biden administration’s war on MAGA is much more a war on its culture than against any credible threat posed by “white supremacists.”

Please.

There is no sense in fighting a war if one doesn’t know what one is fighting for and against. The right and left have different motivations and goals. At least the thought leaders on either side do. For much of the rank and file, it is purely a tribal conflict, with each side defending its banners and shibboleths.

It is important to understand that the left’s war on traditional culture is economically motivated. Breaking down cultural norms is a means, not an end. The entire school of critical theory was founded based on the realization there was not going to be a proletariat revolution due to economic conditions.

There was a very simple reason for this: the industrial revolution had made the proletariat much better off. Their real wages had risen and standard of living skyrocketed. It’s hard to generate the kind of anger necessary for a revolution among people who are doing better than they or any of their ancestors had ever done.

The founders of the Frankfurt School did not admit this to themselves. They were convinced socialism was a superior socio-economic philosophy and since empirical economic data contradicted this view, there needed to be a “more accurate” lens through which to view societal conditions.

Thus, critical theory was born as history’s most elaborate rationalization for denying reality. Objective reality was necessarily one of the prime targets of critical theory because it could tell only one story: capitalism was a vastly superior economic system not only to socialism but to any other economic system yet discovered. So, objective reality had to be challenged.

This eventually led the critical theorists to focus on minority victim groups and how capitalism was oppressing them, even if it was yielding vastly better economic results in the aggregate.

Of course, this was no truer than Marx’s economic theories about capitalism. What has vastly improved the lives of “people of color,” women, and other “marginalized groups” in poor countries over the past several decades has been less socialism and more capitalism.

China and India did not go from destitution to explosive economic growth because of diversity or democracy. Their transformation is due entirely to becoming more capitalist. Are they laissez faire? No, but they’re far more capitalist and far less socialist than they used to be. The same can be said for dozens of other countries.

A billion people were lifted out of extreme poverty over the past three decades and all the gains came in countries that became more capitalist and less socialist. There are zero outliers.

One can see why objective reality is such a problem for Marxists. This is why they fight on the cultural front, using all means possible to distort objective reality and persuade their target victim groups that capitalism is oppressing them. To achieve their ends, history must be erased, established customs declared racist, misogynist, or homophobic, and even the meaning of words changed to, in many cases, their antithesis.

But the end goal is economic. Every assault on societal norms must be viewed as a strategy to achieve socialism – because it is. No, the shrieking, purple-haired, nose-ringed, “trans man” may not realize this him/herself, but the people who created that unfortunate soul do.

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Tom Mullen is the author of It’s the Fed, Stupid and Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty, and the Pursuit of Happiness?

Trump Winning the Trade War Would Make China Stronger, Not Weaker

trump chinaWe don’t win anymore,” said candidate Donald Trump numerous times during his 2016 presidential campaign, referring to America’s trade relationship with other countries. Trump and tens of millions of his supporters hold the protectionist view that trade, like all human relationships, is a war that must be “won.” Rather than exchanges that leave both parties better off, protectionists see trade as a zero-sum game in which one side benefits at the other’s expense.

Fair Trade Over Free Trade

The president has said on more than one occasion that he supports free trade, but he insists it must be fair, meaning that China or other partners reciprocate any relief from tariffs and other burdens placed on their exports. And it is true that China has not treated American exports to China the way America has treated Chinese exports to America.

China has been more protectionist and is likely engaging in some subsidization and/or other government assistance to its exporters, even if it and its effect on America’s trade deficit with China are greatly exaggerated. Americans would be better off with zero tariffs and completely free trade regarding its imports.

Regardless, Trump and his supporters draw completely the wrong conclusion. Persuading Xi Jinping to adopt free trade policies would make China’s economy stronger, not weaker.

Read the rest at Foundation for Economic Education…

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

China becoming the largest economy would be great for Americans

trump-xi-wall-street-1069240Here’s another little piece of evidence that whatever made the American psyche one inclined towards freedom is long dead: the irrational fear China may surpass the United States as the world’s largest economy.

So what?

China’s population is five times larger than the U.S. population. It should be the largest economy in the world. If both countries had laissez faire free market systems, China would have the largest economy in the world and that would be great for the Chinese, for Americans, and for the rest of the world. It would mean an enormous increase in the world supply of goods and services, making the average inhabitant of this planet richer, just as the industrial revolution made richer the inhabitants of the countries in which it occurred.

Anxiety about China’s economy being larger than ours is born out of statist, collectivist thinking, in which the individual is subordinate to the glory of the state collective. In a word, it’s dronethink.

The only reason the U.S. economy has ever been larger than China’s is because it was relatively freer than China’s – by orders of magnitude during China’s communist era. The reason that gap is closing is because China, while still by no means a laissez faire free market, is becoming relatively freer, while the US is becoming relatively less free.

The only way for China to become the largest economy is by continuing to make its markets and, eventually, its entire society freer. Whether it will do so or not remains to be seen. The freedom momentum there has slowed somewhat recently, although the momentum here is in entirely the other direction.

Anyone who wants to live in a freer, richer, and safer world should hope both Americans and Chinese have the good sense to clean house in their respective governments and establish a laissez faire system in both countries, resulting in both becoming far more productive. Yes, China’s economy would then  become the largest economy in the world and that would be just fine.

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.