GWB’s Secretary of the Treasury has endorsed Hillary Clinton for President. Mostly known for falling to his knees in front of Nancy Pelosi to beg her to pass his bailout. A globalist clown and clueless in the way only a merchant banker can be. But it is this in particular that I wish to bring to your attention.
Paulson insists that “it’s wrong to tell the American people” that we achieve economic success by “walling ourselves off from the remaining 7 billion people and the markets they represent”.
This is the mentality that has caused modern economics to descend to the economic stupidities of the Mercantilists. A favourable balance of trade, and the import of gold, was the aim of every government. The aim was to sell and bring in gold. The value of the rest of the world’s economy to Paulson, and I suppose quite a few others, is that they will buy what you produce. I suppose it is true that you can only buy from others if you first sell. But that is not the point he is making. It is the selling that is the benefit. Exporting is what they think makes you wealthy.
So let me point out that the reason to export is to import what you cannot produce as cheaply as others. It is not done to create jobs, which will be created in any case. And it is not done to build up foreign exchange, which is economically useless unless it is spent.
Because the fact is that unless they buy from you they cannot sell to you. If the people you trade with are as crazy as Paulson, they will break their necks to sell and trade will go on without anyone having to do a thing. Without deliberately raising tariffs and other forms of protection, I wonder how it is even possible to wall off the US economy, or any economy, from everyone else. If your goods are cheaper than theirs, and their goods are simultaneously cheaper than yours – which is the paradox of trade how both can happen at the same time – trade will just go on without anyone else having to do a thing.
You might actually go into the link to see just how hopelessly out of it the people at the top of our economic tree are.