General Discussion
In reply to the discussion: The jobs are going whether we sign agreements or not. [View all]pampango
(24,692 posts)That includes Germany and the Scandinavian countries even as their manufacturing output increases as it has in the US. Much of the employment decline is due to technology since there has been no decline in manufacturing output. However, these countries know how to protect the health of their workers and middle class despite this decline. As Bernie, as said - why can't we be more like Scandinavia?
republicans tried to protect American workers (or, more likely, the profits of the American corporations that supported their party and did not like competition in the US market) in the 1920's with higher tariffs and lower immigration. It did not work. But the 'magic' of tariffs as a way to solve domestic economic problems has never died, particularly among the right-wing base.
It did cause a big decline in imports and exports but did less than nothing for American workers. Income inequality hit historically high levels that we have still not equaled even in our current extreme inequality.
FDR knew trade restrictions did not work so he got rid of them and tried to set up a post-war world where national legislatures would have a difficult time falling back to the 'magic' of tariffs to solve problems. Of course, FDR also knew, as do Scandinavian countries today, that high/progressive taxes, strong safety nets and effective support for unions are just as necessary as trade.
That's a lesson that the US has effectively forgotten. Many, even on the left, look to a Coolidge/Hoover solution - restricted trade - rather than an FDR solution more trade and high/progressive taxes, strong safety nets and effective support for unions.