Politically, and economically. I want to talk about the path we're leaning towards, and it's not the right one. We should be ashamed of ourselves regarding the recent flap over the Dubai 'ports' issue. The Democrats involved were willing to give our country a black eye for domestic political gain. They really stand for nothing but bashing Bush.
The Republicans have been exposed as all-around frauds in my opinion-not just on the Dubai deal. They talk a good Libertarian game when it come to the rule of law, free trade, and domestic spending restraint, but when the rubber meets the road, it all falls apart. They will probably get what they deserve in the upcoming elections. They've had control of the White House, the House of Representatives, and the Senate for most of the Bush adminisration, and here's what they've managed to do of any substance: kick ass in Afghanistan and Iraq, and enact some tax reductions.
With that much control of the government, excuses no longer hold water. Our politicians talk about radically changing our energy policies. We could
immediately (and substantially) reduce our reliance on foreign oil by removing the import tariffs on Brazilian sugar-based ethanol. Our politicians would rather us keep heavily subsidizing the domestic corn-based ethanol industries instead. It seems we are not that serious about changing our ways, are we?
Do we continue with this political madness? Unfortunately, I believe we will. Both parties are well-entrenched, with no real choice for people who believe in a government that is truly limited to its Constitutional functions. We talk free trade, but don't practice what we preach. The Social Security and Medicare time bombs are ticking away, and nobody in Congress has the guts to radically change them before our kids and grandkids have to deal with an economic meltdown. I find it interesting that people speak of Enron and Worldcom like they were biblical disasters. Both of those situations combined are merely a
speck on an iceberg when it comes to the future implosion of the entitlement programs.
Regrading free trade issues,
we've lost all our credibility. A major component of free trade is the
free flow of capital, and that means that a Chinese company might own a U.S. oil company. A Dubai company might own some terminals at our ports. A U.S. company might own a company somewhere else. Big deal. I can see why our defense contractors should be strictly American. Otherwise, an obvious Constitutional function of our government could be compromised. Other than that, who cares? It's not like Dubai can take our port terminals with them. As I understand it, operating terminals at the ports is an unattractive, low-margin, slow-growth business. If so, that's why American companies are not interested in the business. We should be shaking the UAE's hand while muttering, "suckers!" under our breath. I remember when Japan was buying up real estate and U.S. businesses back in the 80's. This same isolationist sentiment was surfacing back then- it turns out the Japanese overpaid for most of their buying spree; remember Rockefeller Center?
Why would foreigners want to continue to do business with us? We talk a great free-trade game, but only when it benefits us. With our repeated mistreatment of our trading partners, you have to think that we're less attractive to do business with than before. For the time being, we will continue to be an economic powerhouse, and we won't have to worry about things too much. But someday, when China and India become major world economies, we will not be the biggest economic kid on the block. When the grass is greener on the non-U.S. side of the fence, will our current trading partners place such an importance on our markets? I don't think so.
Will we choose the right path and remain one of the most dynamic, economically-free technology leaders of the world? Or do we continue engaging in isolationist, hostile economic policies that will drive business and capital elsewhere? It's our call.
