Posted by
KsReaganite on Monday, March 31, 2008 8:24:22 PM
Nobody who reads this blog or otherwise knows me will remotely mistake me for being anything but unabashedly pro-free trade. Philosophically as a matter of fundamental freedom, and practically as a matter of macro-economic health, I consider the liberty of commerce to be a sine qua non of the American way of life.
But then there is the impact at the micro level…both in economic and, more important, in social terms. Some of this impact is real, some is perceived, and all of it is glaring in some demographics and locales. There is hurt and pain in large swathes of the industrial Midwest and in Appalachia. Free trade has turned upside down, in the space of one generation, the social and economic axioms that have been the norm in these communities for almost a hundred years. A diploma from a public high school is no longer a path to lifetime job security, nice house, good marriage, and the brand new truck. Frankly, such a diploma hadn’t meant much of an accomplishment anyway for a couple of generations since the NEA backed labor unions started dumbing down American K-12 education. But until recently, the lack of mobility in capital and knowledge kept up the façade of an efficient blue collar middle class in the industrial Midwest. The breakdown of many trade barriers and the advent of the information superhighway knocked that façade down pretty rudely. A better educated, more productive, non-unionized workforce overseas is now providing the same services (thanks to the superhighway) and goods (thanks to freer trade) for much less. This has resulted in most middle class Americans being able to afford goods once the preserve of only the rich; at the same time shareholders of US based companies (and that includes all those of us with 401Ks, pension plans, and E-Trade accounts) are benefiting from the increased profitability of these stocks. An ancillary to the global liberal trade regime has been the billions in industrial investments by Japanese, German and, now, Indian automakers in the southern United States, creating tens of thousands of new jobs in Tennessee, Alabama, and the Carolinas.
Nonetheless, many in the industrial heartland don’t see the moderately optimistic picture of jobs, investments, and affordability. They see a world turned upside down, a new world that tells them that the drudgery of basic mathematics and science is far more important than high school football and cheerleading. Their phone bills are much lower but the person at the other end of the customer service line has an accent. People moving into the upscale suburbs are no longer union workers who made good but brown, yellow, or multi hued families that have graduate degrees and drive their kids to excel in school and expect them to do homework. What is the world coming to?
The dilemma is real and solutions tough. But left unaddressed, the downside of the new economy will only serve to fuel the latent fires of pessimism, localized unemployment, and xenophobia. First and foremost, there is a need to make our public schools competitive with the world so that their graduates matter in today’s world. That means emphasizing the uncool things like traditional mathematics, science, and homework and scaling back on ancillaries like football, piano, and self-esteem lessons (yep..sounds harsh but facts are facts). School reform also requires cleansing the public education system of the NEA mafia, lengthening the school year, and establishing minimum, concrete, standardized competencies (please, none of that nonsense of ‘tests aren’t everything’).
Secondly, the steady erosion of blue collar employment opportunities must be expanded. Not with a government program or even a bailout but with an approach quite the opposite. A cursory look at one industry-the core of the upper Midwest’s pride and woes-is sufficient to point to the right direction. While Detroit with its bulky Big Three has fallen farther and farther behind, the Deep South is growing with nimble Toyota, Audi, and Nissan plants. The secret? A friendly business environment, open shop labor (workers are free to choose to belong to a union or not), less intrusive state regulation, and stronger family structure (producing more stable and ethically sounder workers). Reducing sharply the regulatory burden, both state and federal, on manufacturing will go a long way in helping the industrial Midwest regain its economic footing.
Finally, as strange as it appears in an essay like this, the fact remains that our main overseas competitors-the Japanese, the Chinese, the Indians, and even the Germans-have a massive edge on us today when it comes to social stability of the basic kind. With a third of children born out of wedlock and two out of five marriages dissolving-phenomena affecting the working classes disproportionately-the social foundations of a great economy are somewhat shaky. While a free society must not proscribe behavior that is merely untoward, it cannot afford to reward unethical personal behavior either. Unfortunately in most of our states the divorce, child custody, and domestic violence laws are such that breaking up families generates monetary rewards for bureaucrats, judges, lawyers, and unethical participants themselves. The family dissolution industry is an 11 billion dollar a year undertaking in America…bigger than the auto industries in many countries. We simply cannot afford, socially or economically, to continue this trend forever. An unstable family structure, even in the greatest of the economies, cannot profitably sustain a market leadership over the long term.
We know the problem and we know the direction to the solutions, if not the solutions themselves. The question is, does anyone have the courage to admit the actual problem and then the further courage to propose the right solution?