Ok...so when the US begins to subsidize its corporations....then it will be ok for all other countries....to subsidize theirs..... Not that this is not already the case to some degree....but it will become even more of a future issue....as the free market tries to rise from its wounds.... Just another reason for the world to change their tax methods in unison to a 10% consumption tax only.... If one is to have fair trade.....then the tax base has to be similar as well....
Fair trade is not about subsidizing corps. it is about levying tariffs to make similar products identical in price regardless of origin. Hence, an American-made TV and one from Mexico have the same price. Let the consumer choose the quality they want, and take it home. Free trade is about allowing competition of anyone who wants to play; it is pitting $20/hr American workers against slave labor and acting surprised when the company that uses the slaves sell more product at a lower price. WalMart is free trade. Free trade is not fair trade. If you disagree, go read the 6,200 pages of NAFTA with side agreements, then come back and state your case.
NAFTA and WTO are very very far from free trade, let alone fair trade. Maybe 10% of their text concerns actual commerce. The rest is about giving ridiculous powers & ownership rights to large corporations.
The problem with fair-trade is its scale. At this scale, it is only a product for the wealthiest. But what is the alternative? better save some from slavery than to keep everyone starving.
One wonders if a level playing field is possible..... Technology Taxes Current economic comparables ie Chinese labor is rioting literally today ... Also...sovereignty and independence..... The US is learning the hard way what it means to have given up so much manufacturing ...etc.... ..................................................................................... Why not ......... Each country eliminate thier IRSs....and establish a 10% consumption tax.... Mandate no government subsidies..... Mandate level labor payments.... You know the list...... Actually form trade to enhance the sovereignty of each nation.... Trade fair...and at ease.....
''Each country eliminate thier IRSs....and establish a 10% consumption tax....'' Is that possible to finance unemployment benefit, health care for the poorest and good education with only that tax base?
You bring up the exact point that I am looking for......... Most think that one must assign a known debt rate in order to generate the needed capital..... The fact is.......in this case less is more..... ............................................................................................ ie... The current declining base will have to pay more....which will further erode the base.....and less will be generated.... and add a population that is justifiably irate.... or One can pay less and collect 100 times what is needed from an ever expanding base......and add a population that is ecstatic about their future....
As the recession gets worse it will become a beggar thy neighbor. Tariffs are coming one way or the other. A bailout to Detroit is bailout in any terms.