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« Brain food from the heartland

Globalization Madness

By Louie b. Free (Contact)

Published March 24, 2009

Globalization Madness—

or The Chinese { and others} Don’t Pay American Taxes

You may not have given it much thought, but rest assured on April 15 as you submit your tax return the Chinese and other foreign workers will not pay the IRS or any other tax agency anything.

This may come as a surprise to many given the powerful and organized support for a non- interruption in the way we do business with the ‘Peoples Republic and other relative new comers to the world trade scene.”.

Their lobbyists and other romantic apologists, insist the current trade practices with China benefit the United States. Really?

The absurdity of this speaks for itself. The Americans have their jobs taken from them or are moved involuntarily by obliging multi-national corporations to China, India, Korea, or wherever, but on April 15 it is only the Americans that pay taxes. We are speaking here of all taxes, Federal of course, but also state and local, school, and road taxes as well.

These countries reap the benefit and we carry the burden. They win we lose.

The implicit assumption regarding trade treaties is that all will benefit. Unfortunately, the structure negotiated results in the foreigner doing the producing making a profit and the Americans borrowing and consuming thus becoming debt ridden. The end of such an arrangement for the Americans must be bankruptcy.

The imbalance in our trade figures, which now stretches back some four decades is conclusive testimony of this. The treaties which contributed to these imbalances from the American standpoint are dysfunctional and self defeating. The current global financial crisis in no small part is due to these imbalances.

Those who defend these treaties as written argue that China and the others are part and parcel of a “new world order” designed to expand commercial relationships with other countries. It has been given the name globalization. Wasn’t it Hitler and Stalin in the twentieth century who promised a new world order?

For trade to contribute to global growth requires balance. Growth is impossible without balance and balance will never be achieved without fairness.

There is no fairness if a nation controls and manipulates its currency as China does. This government ordained policy assures China that their goods are cheaper than comparable American products, preventing American manufacturers from competing effectively within and outside the United States. The result for the Americans has been a staggering job losses.

There can be no fairness if the Americans must carry the debt and pay the taxes.

Isn’t it about time that we began to play on a level playing field? China for example has strict limits and restrictions on American participation in the internal Chinese economy, though our economy is open to them. This is absurd and must end.

The icing on the cake, however, is the arrogance of the Chinese position on this entire matter. They argue that they should be able to continue what they have been doing and the Americans should just accept it as they are the largest holder of our bonds.

This is much like the fellow who has been stealing from the casino in Las Vegas and argues that he should be allowed to continue his dishonorable practice because he owns a great deal of the casino debt purchased with ill gotten gains.

Inertia, just plain stupidity and in many a case corrupt practices has lulled Washington and many an ordinary American business man into accepting the rules of the game as drawn. The reason they have gone along is that they see dollar signs dancing before their eyes.


This great “new world order” would by the middle of the first decade of the twenty first century produce calamity; a global economic crisis which now, to add insult to injury, the American taxpayer in concert with others is suppose to “bailout”.

If the Americans do bailout everyone including China by paying more in taxes, what happens next time? Be rest assured given the imbalance there will be a next time.

The reality is that as a nation we will address this problem now or there will not be an America as we have known it. That is our choice. That is our only choice.


David Barrett

Hilton Head Island

South Carolina


1Erplane(482 comments)posted 5 years, 5 months ago

Alot of the above is factually incorrect. The Chinese do not have unlimited access to the US economy. When they went to buy Conoco, we blocked the sale. There are currently anti-dumping tariffs in place to protect American steel. So its not a walk in the park for the Chinese like you imply.

Further, you state "If the Americans do bailout everyone including China by paying more in taxes next time, what happens next time?" I have no clue what this means. How is it that we are paying taxes to bail out the rest of the world? China has been bailing out America for about 8 years now. They have been one of the biggest buyers of our Treasuries. They are market makers for our own shortcomings.

I'm not a China-lover, but if we're going to bash them, why dont we bash ourselves first. It is us Americans that flock to Wal-Mart for cheaper prices (and Home Depot) instead of thinking of the consequences of our actions and purchases. They are the ones who squeezed American companies to produce cheaper goods, and thus the US firms have to move overseas. We cant have our cake and eat it too. And it is we, the American consumer, that must have the bigger SUV, the bigger house, the bigger plasma tv that we could have afforded. We did it with debt. And that credit is ultimately being propped up by China. So is it their fault, or our own?

When I was moving to China in 2005, my friends mom in Boardman said 'your going to help send our jobs overseas?' Great comment coming from a woman who had just purchased a Hyundai Elantra (made in Seoul, South Korea). One thing America is not short of these days is hypocrisy. Instead of blaming China, why dont we look in the mirror America?

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2Erplane(482 comments)posted 5 years, 5 months ago

One more thing. Chinese wages in real dollars are way lower than in the U.S. Yet the Chinese are some of the best savers on the planet. Who is dumber there?

I feel your whole post is nothing more than a way to stir up populist sentiment instead of looking long and hard of the pros and cons of globalization. Especially the Hitler / Stalin comments...great stuff for the Jerry Springer show. If I were you, I would respect your followers more by being alot more constructive in your arguments.

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