American Markets Before Globalization

With a recession on the doorstep for the American people, it is in the best interest of everyone to discuss the reasons that are causing this and how we can prevent it in the future.



Today we live in a global economy. American companies not only compete inside America, but they also compete outside of America. This would appear to be free enterprise at work, but that is hardly the case. The United States is a beacon to the world of free enterprise. Most countries in the world haven’t adopted this. They still live in a market place that has much government involvement and this leads to a distortion of the market place on a global scale.



The hardest hit part of the economy is the manufacturing sector. Jobs are moving to mainly China, where the labor is cheap and the American dollar buys more. The Chinese government is known for a tight hold on the economy. The currency of China has been purposely devalued. This results in continued flow of American manufacturing jobs into China, even though normally, the market would be better suited for Americans.



For decades Canada and the United States have had long drawn out lumber disputes. In Canada a business can get large sum of land leased from the government for very little money, whereas in the United States, businesses have to buy it in the market place and market value. This makes Canadian businesses much more competitive than American. In this dispute, the American government has taken a stand and put tariffs on Canadian lumber to make up for the cheap government leases.



To conclude, the problem isn’t the market place, it’s foreign government manipulation. The American economy must come first. Foreign competition needs to be shut out of the economy and free trade needs to be ended. Once foreign countries decide to adopt the true values of free enterprise, then and only then, should they be allowed to enter the economy.