JAN. 23, 2014 -- The United States was born in a trade war (Boston Tea Party) -- which continues today. Globalization is nothing more than a trade war with the troops (Corporate America) fighting for our competition.
be prepared for this cold war as we are for the hot war. As other governments
close their markets, demand technology, and protect production, our government
must counter their predatory practices and protect production. To meet
the competition in this trade war, we don't want to weaken our environmental,
safety or health laws. We must protect production vital to a strong economy.
Robert Gates, the former Secretary of Defense has just published his book, Duty. The duty of the President and Congress is to develop and maintain a strong economy. No entrepreneur will invest unless his production is protected from predatory practices. The Founding Fathers enacted the Tariff Act of 1787 (two years before the Constitution), to protect our manufacture. In 1961, President John F. Kennedy held a Cabinet Hearing that determined textiles were vital to our national security. We couldn't send troops to war in a Japanese uniform. Then President Kennedy promulgated his Seven Point Program to protect textile production.
New York Times (12/20/13) reports on various countries furnishing
the U.S. military with uniforms and clothing. A couple of years ago President
Obama was begging Russia for helicopters for Afghanistan. The Defense
Production Act of 1950 is not enforced. Our defenses are down in both
the hot and cold wars. The President and Congress continue their fetish
of "free trade" and "against protectionism". As Henry
Clay exclaimed on the floor of the U.S. Senate in 1836 about free trade:
it doesn't exist. It never will exist".
It's time to get real. Rather than federal aid for policemen, firemen and teachers and talking jobs, President Obama must act like a Governor - make the United States attractive for Corporate America to invest and produce. The President must tell the people:
The Corporate Tax is not rebated. An entrepreneur in the U.S. must pay the 35% Corporate Tax and when his exports reach China, another 17% VAT. A competitor can produce the same product in China, import it tax free to the United States and put the entrepreneur out of business. So we are going to replace the 35% Corporate Tax with a 7% VAT.
releases $2 trillion in offshore profits for Corporate America to repatriate
tax free, invest and create millions of jobs. 4.) Last year's Corporate
Tax produced revenues of $288 billion. A 7% VAT for 2013 would have produced
$945 billion permitting Congress to balance its budget in two years rather
than ten. 5.) We will enforce our trade laws and protect the production
of items vital to a strong economy.
this doesn't happen is money. Wall Street, the big banks and Corporate
America want to keep the China profits flowing, the market up, so they
contribute to the President and Congress against the VAT tax cut; to do
nothing about China's and Japan's closed markets; to do nothing about
China's devaluing its currency; to do nothing about enforcing trade laws
against predatory practices - to do nothing. The President and Congress
and Congress neglect their duty.
Senator Hollings of South Carolina served 38 years in the United States Senate, and for many years was Chairman of the Commerce, Space, Science & Transportation Committee. He is the author of Making Government Work (University of South Carolina Press, 2008).
© 2014, Ernest F. Hollings. All rights reserved. Contact us for republication permission.
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