Competition – THE key word for many economists for
- progress defined as:
- (hopefully) cheaper product prices
- (hopefully) more innovative products
I would argue that “more competition” “more free trade” does not solve the problem – if the monetary system is fundamentally broken or in other words: no matter how cheap the product – if people have no money to buy them.
“Competition is good, but having only competition is not good” (Bernhard Lietaer, 2015)
Free trade zones (EU, Euro, NAFTA, TTIP) and the abolition of customs duties serve solely to intensify competition.
It brings companies from different countries that do the same/produce the same (e.g. corn or cars) in even more direct conflict with each other without a tariff firewall – while at the same time – all the local laws and regulations are still in place – so it’s an unfair competition.
This in fact – leads to closing down of many companies that can not compete.
EU = Euro = Free Trade Zone, increases misery and sparks anger in Greece, Spain, Italy, Portugal but also France and UK
One example are German Solar Panel producers (could not compete with China, especially not after they bought machines from Germany to manufacturer solar panels of even higher quality) so they had to close down – now basically ALL solar panels and batteries sold in Germany come from Asia – is this good?
Good for Asia not sooo good for Germany – at least Germans now can enjoy cheaper solar power having become very competing with local power costs of up to 30Cents per 1kWh! (experts calculated 1kWh of solar power has “ownership” costs of 11Cents and falling, if quality of all parts is well done, a 10.000€ investment in solar + battery is necessary per household, so most people can produce 60% of their electricity themselves for the next 30 years)
the Berlin (fire)wall
A lot of East-German companies were closed down straight after the fall of the Berlin (fire)wall – West-German companies did not want to have more competition in the same country/free trade zone.
this is the “creative destruction” that also lead to the economic downfall of East-Germany and 30 years later – unemployment is still way higher than in West-Germany, still people flee these countries, it has not recovered to old strengths – this form of (more or less creative) “destruction”/demolition/closing down of East-German companies was and is a catastrophe for East and West-Germany.
No more people vote far-right in East-Germany than in West-Germany – for exactly this reason.
So i guess we have to decide – more profits at any costs – or engage in more sustainable ways of conduct – after all the next financial crisis will come because it’s the fundamental defects of the debt-money system are not fixed (except maybe in Canada, because the government of Canada has a law that says, the (cash printing) Central Bank of Canada HAS to buy state-bonds – no matter what)).
If Kohl and Mitterrand argued (both fathers of the EU and the Euro) – that the EU is a peace project – he just increased amount of conflicts by this free trade zone.
It is not called a free trade zone but that is exactly what it is.
Now highly in debt south states (Greece, Italy, Spain) lost the free trade whoever has more slaves and the cheaper economy game to the North and everybody is angry and the whole thing creates a lot of anger.
The EU-project has shutdown all trade-firewalls across Europe (Switzerland was not that stupid) and with every free trade deal, trade-firewalls with USA, Japan and China are gradually shut down – also hurting German companies that (just as US companies) are paying their people a higher wage than Chinese companies would do.
So the state itself abolishes all means to protect their companies and hopes that everything will regulate itself.
What happens is – when one company has won the competition – the other company needs to close down – resulting in mass unemployment.
Trump still firmly believes in capitalism, but apparently no longer in globalization as means to bring mankind forward (or at least reduce US debt).
Trump restarts the US-trade-Firewalls because he realizes that US is losing the economic war against the Rest of the world.
This economy is unfortunately a war like situation – often not played with fair means. (China is very strategically buying up Western companies with state-loans, that would be like: Amazon gets a governmental loan to buy/take over Alibaba and expand it’s monopoly)
So free trade increases monopolies – also not good.
Even if Greek cars – can not immediately compete with German cars – they should build their own cars – just to be independent from a maybe soon to be dysfunctional monopolistic car manufacturer market – but yes – also to create jobs and build skills.
NAFTA has brought Mexican corn farmers (a lot of manual labor, little machines and chemicals) in DIRECT TRADE CONFLICT with U.S. corn farmers (a lot of automation/machines and chemicals) with devastating consequences.
Competition is good, but having only competition is not good” (Bernhard Lietaer, 2015)
i never quiet understood while every small farmer and small shop keeper “Aunt Emma” has to be brought into compete with all farmers and shop keepers of this world?
I would argue it results in:
- less innovation
- more unemployment
- because a lot of small shops will close down
- everything becomes more monopolistic and monolithic “monopoly” and reduced to efficiency
- efficiency in this terms means: less jobs, because wages cost money
- this means: poverty, stress and anger
- resulting in revolutions, political and religious extremism and sicknesses
- conflict between races, religions
- it means: “The West” can not uphold it’s humanitarian principles, just as Hermann Scheer said, “a new age of barbarianism” or “back to the middle ages” “great”, not exactly where i want to go from here.
- “The idea that certain rights are natural or inalienable also has a history dating back at least to the Stoics of late Antiquity and Catholic law of the early Middle Ages, and descending through the Protestant Reformation and the Age of Enlightenment to today.” (src: Wikipedia)
Right now the German health care system (thanks to our stupid and corrupt politician puppets and their “advisors” (evil influencers)) get’s sold – just as it’s democracy.
Politicians changed 4 words in a law, and now German HealthCare becomes more privatized and monolithic.
A lot of small doctors will have to close their practice and tell the patients, sorry i mean “customers” or “products”, to take a longer road trip of 100km to the next doctor-HQ, where 100x doctors work in one practice.
More travel costs for the patient but of course – when 100x doctors share the same house and machines – they can “process” more patients per day and hour.
German Supermarkets Aldi and Lidl – do it just like their customers – they only offer few products but in massive quantities.
The small companies vanish the big get bigger – but not every small shop keeper will travel 100km a day to work for the big players.
forget your nice theories about reality. they do not work and are at best “mistakes” and at worst blatant lies that will hurt and anger many many people.
If you want more anger keep going!