U.S. No Longer Has The Goods
As America recuperates from the economic disaster of 2008, reality needs to settle in. Capitalism as we know it, is over. The days of a booming housing market, low inflation, and a thriving dollar have passed because of the unfounded belief that the United States is still the pre-eminent economic world leader.
The American economy is so inconsistent that the citizens are inclined to believe that any good news regarding the stagnate economy means all is well, and then a day later, a poor reading or result of a leading economic indicator kills the positive progress made days before. The evidence of this is the thousands of Americans who have to start over as a result of the many disappearing industries. The greed of American companies has led to outsourced jobs and Americans catering to foreign market.
Unemployment, inflation, and government bailouts have shown how uneven the production process of capitalism is. Since the end of World War II, American economists and conservative politicians have convinced millions that socialism is unjust and a danger to society. However, for all of socialism's faults, capitalism offers an unequal balance between the rich and poor, monopolization, and unemployment. However, in socialism, all citizens receive equal opportunities.
The blue-collar city of Detroit has lost thousands of citizens due to the destruction of the once flourishing car industry. The once-proud city has been decimated due to major American car companies finally crumbling as foreign competition continues to reign supreme.
Along with the outsourcing that the free market allows, Americans are so accustomed to foreign made products it is almost a rarity to see American made goods. It only takes a few seconds to see how foreign we have become as consumers. Even if the American started to buy American, the country's dependence on foreign imports is too great. It seems the only way to limit any further damage is to change America ‘s policy. Ironically to rectify this would be to exercise a socialist method, Protectionism.
Protectionism harnesses foreign trade and places restrictions on the amount of imported goods obtained in America. To put it simply, instead of buying Toyota, BMW, Honda, etc., the citizens have no choice but to purchase Ford, GMC, Cadillac, or others. This idea does not only pertain to car industry but to everyday appliances as well. Rather than buying Sony, Samsung, and Toshiba, Americans would be legally obligated to purchase Apple, General Electric, and Hewlett-Packard.
Yet with all these findings capitalism has been dominant. The thought of protectionism is extremely controversial. However, protectionism would create millions of jobs and would bring much needed capital back into America. The chances of turning to protectionism are slim due to partisan politics and the worldwide animosity that would ensue. Imagine the ramifications if a trade war ensued; the high tariffs imposed would escalate the economic recession we are currently in. The global unrest that would occur would be a serious that would affect many of America's key partnerships. However, if America cannot solve the issues with their economy, the world will continue to feel detrimental effects.