Robert Reich, recently criticized Republicans and the President for thinking small, while he overlooked a gargantuan issue: the USA has no economic borders! Stimuli, such as tax cuts and jobs bills, don’t last because intellectual, human and financial capital quickly flows out of this country to the cheapest and dirtiest societies. Financial boundaries are part and parcel of our nation’s infrastructure. They, like roads and bridges, have been allowed to deteriorate from neglect and misguided economics for nearly 40 years.
Multi-national corporations, wealthy individuals and China have government supported economic boundaries. They prosper as our economy deteriorates. Ironically, our government spends enormous sums to maintain those boundaries (through education, contract law, private property rights, trade agreements, etc.) while neglecting its own.
Europe’s problems with Greece, Ireland, Portugal and Spain also stem from economic boundaries which don’t coincide with national borders!
The World isn’t flat. It is dimpled by economic boundaries within which jobs, wealth and power pool up.
Early next week I’ll post a detailed paper “National Economic Borders are essential to recovery” which covers what a well regulated economic boundary would do and how it would enable us to manage our nation’s future. The paper also demolishes myths like “free trade works” and “Smoot Hawley prolonged the Depression”, which impede us from rebuilding this critical element of infrastructure.
Sorry for the delay. As I wrote this treatise it blew up on me and turned into a major effort. For example, I began by only considering the external borders and then realized I had to include the internal ones as well. I’ve just posted the first instalment. The next two instalments are in the final stages of revision.
Looking forward to reading this paper!