What’s Wrong with the TPP?

What is wrong with NAFTA, TPP, and other free trade agreements that lower tariffs?

The United States is the dream country for capitalists. The limits on corporations are minimal. Very big companies buy each other out (called a merger) with few government efforts to control the likely outcome of near monopoly. The latest example in Walgreens drug company’s plan to buy Rite-Aid drug company.

Those same companies are now referred to as multi-nationals. General Electric is a creation of Thomas Edison but consider that the company now has facilities in 130 countries. GE has invested over $200 million in a flexible new “brilliant factory” in Pune, India. This information is from GE websites.

Heinz Ketchup sits on the tables of restaurants in Paris. It is not packaged in the United States.

The United States currently imposes low tariffs on most of the goods imported into this country. The TPP will eliminate those tariffs on the other 11 countries. That probably won’t impact the amount of goods being imported. The agreement also lowers the tariffs that other countries impose on imported American goods and that appears to be a good thing.

However when those goods are shipped overseas that are in limited supply in the United States that will drive up the prices in America. An example is chicken. Tyson Foods processes 41 million chickens a year. If they can sell some of those chickens in other countries that will reduce the number of chickens available for sale in America. Less supply translates to higher prices. That means higher profits for Tyson.

If you manufacture something in the United States where $15 to $25 per hour is a common pay rate, why not manufacture your goods in Vietnam, Peru or Malaysia where pay rates are significantly lower and import the products to America?

John Deere and Caterpillar are two companies that will benefit from lower tariffs in other countries. The problem is there are too few companies that are in the category of big machines.

The United States has lost millions of jobs to lower pay rate countries. The benefit to company shareholders is obvious. The loss of jobs in America is obvious. The rich typically get their way. I predict capitalism will prevail. I also predict the end of the middle class in America.

How Big Business Continues to Take More from Everyday Americans

Walgreens Drug company, officially named Walgreens Boots Alliance Inc., on Tuesday agreed to buy Rite Aid Corp. for about $9.4 billion, combining two of the nation’s largest drugstore chains as they bulk up to increase their profits. The claim is that they are doing this to better compete in the rapidly changing health care industry.

The two companies didn’t say whether they would shutter stores or lay off workers after the deal closes. But they did say that “decisions will be made over time regarding the integration of the two companies” and that Walgreens “plans to further transform Rite Aid’s stores to better meet consumer needs.” A Rite Aid is about 3/4 mile from my house and a Walgreens is about one mile from my house. Do you think both will remain open after this consolidation?

Soon when you say “I am going to the drug store” no one will ask which one because there will be only one. That is also likely to happen in the retail food market business as Kroger continues its march to own all the general purpose food stores no matter what the brand name is on the front of the building. In Los Angeles both Ralphs and Food 4 Less are owned by Kroger.

The dismaying part of this march to consolidation is the reduced competition and the ensuing price hikes. No matter what those companies say, when there is reduced competition there are price increases.

The saddest part of this situation is that our congress sits on its hands and does nothing to stop the consolidations. This is the reason that Donald Trump, Ben Carson, and Bernie Sanders are all doing well in the presidential polling. They say that they will stop the control of our society by the wealthy.

Can we believe those outsiders? The insiders certainly have not done the job.

Ben Carson Continues to Prove He is not Ready for the Presidency

Given that Doctor Ben Carson is a retired neurosurgeon it is difficult to understand how lacking he is in basic knowledge about how the Federal government operates and how little he knows about American treaties.

Number 1:

When asked about what Eastern European nations should do about the fear of Russia he said they should join NATO.

Hugh Hewitt, talk radio host, asked if NATO should be willing to go to war if Russian leader Vladimir Putin attempts to do in the Baltic states (Estonia, Latvia or Lithuania) what he’s already done in Ukraine.

“I think they would be willing to go to war if they knew that they were backed up by us,” Carson said. “We need to convince them to get involved in NATO and strengthen NATO.”

“Well, the Baltics, they are in NATO,” Hewitt responded. [In fact, they’ve been member states since 2004.]

After a commercial break, Carson explained that he was confused. “Well, when you were saying Baltic state, I thought you were continuing our conversation about the former components of the Soviet Union,” he said.

Carson’s views on the current Middle East turmoil are similarly confused. Read the entire Hewitt interview here:

Number 2:

In an awkward back-and-forth on NPR’s “Marketplace,” the top-tier GOP presidential candidate baffled host Kai Ryssdal by apparently conflating the debt limit with broader budgetary issues.

Ryssdal asked Carson if the US should raise the debt limit, a hot-button issue that has repeatedly generated congressional brinkmanship in recent years.

Here is the transcript:

Ryssdal: All right, so let’s talk about debt then and the budget. As you know, Treasury Secretary Lew has come out in the last couple of days and said, “We’re going to run out of money, we’re going to run out of borrowing authority, on the fifth of November.” Should the Congress then and the president not raise the debt limit? Should we default on our debt?

Carson: Let me put it this way: If I were the president, I would not sign an increased budget. Absolutely would not do it. They would have to find a place to cut.

Ryssdal: To be clear, it’s increasing the debt limit, not the budget, but I want to make sure I understand you. You’d let the United States default rather than raise the debt limit?

Carson: No, I would provide the kind of leadership that says, “Get on the stick guys, and stop messing around, and cut where you need to cut, because we’re not raising any spending limits, period.”

Ryssdal: I’m going try one more time, sir. This is debt that’s already obligated. Would you not favor increasing the debt limit to pay the debts already incurred?

Carson: What I’m saying is what we have to do is restructure the way that we create debt. I mean if we continue along this, where does it stop? It never stops. You’re always going ask the same question every year. And we’re just gonna keep going down that pathway. That’s one of the things I think that the people are tired of.

Ryssdal: I’m really trying not to be circular here, Dr. Carson, but if you’re not going to raise the debt limit and you’re not going to give specifics on what you’re gonna cut, then how are we going to know what you are going to do as president of the United States?

Number 3:

Ben Carson told Meet the Press that no Muslim should ever be president. “I would not advocate that we put a Muslim in charge of this nation.” The constitution specifically says that there is no religious qualification to be president. Carson doubles down by telling Wolf Blitzer on CNN he is not sure that President Obama is a Christian – and that really doesn’t matter but being a Christian seems to matter to Ben Carson.

Bill Clinton Defends His Wife Hillary

Appearing on Erin Burnett’s “Out Front” on CNN former president Bill Clinton did a good job of defending his wife Hillary on her performance as Secretary of State.

“When we look at the job that Hillary did as secretary of state, she goes down as perhaps the worst secretary of state in history,” Trump said then.

Bill Clinton pointed to his wife’s efforts to impose sanctions — getting Russia and China on board — that precipitated negotiations over the Iran nuclear deal. He said that while that deal has proven controversial, the sanctions were roundly considered a success.

“Even the Republicans admit that the sanctions on Iran were well done,” he said.

“And that was a major achievement, to get Russia and China to agree to sign off on these sanctions and enforce them,” he said. “She did that. That’s what made the talks possible, so even the people who don’t like the Iran deal, like the sanctions.”

He also highlighted her work on the new START treaty with Russia, saying that “having these two sides still committed to reducing the number of nuclear warheads and missiles, I think, is a good thing.”

He said Hillary Clinton’s efforts to expand the number of beneficiaries from the George W. Bush-era anti-AIDS program known as the “President’s Emergency Plan for AIDS Relief,” or PEPFAR, from 1.7 million people to 5.1 million by using more generic medicines. The expanded program did not cost on additional cent.

“These are all facts, so they’re not common to the diatribe here,” Bill Clinton said.

Of course there was no discussion about Libya, Benghazi, and e-mail records.

Auto Manufacturers Cannot be Trusted

Once again we have been reminded that auto manufacturers cannot be trusted. Remember that fact when you shop for your next car.

I always held Toyota in the highest regard. I used Toyota as a standard when urging my employees to do their best. I would say, “I want Toyota quality.” Those were my words in the 1980s and 1990s, well before Toyota’s developed an acceleration problem that cost lives. In my opinion there has never been an adequate explanation of the cause of that problem. Toyota ended up paying out a staggering $1.3 billion to settle lawsuits related to unintended acceleration, and in some of those cases the drivers were probably at fault.

General Motors kept quiet about the ignition switch that would shut off while their cars were in motion. That too cost lives. 13 people died. Almost 780,000 Chevrolet Cobalts and Pontiac G5s were recalled and the company paid a $35 million fine. What is sad is that it would have only cost 57 cents to fix each faulty ignition switch.

Now we have the VW installed software that masks the real performance of its diesel cars. There is no direct impact on the buyers of the cars but the company and its dealers will notice a substantial decline in sales. The company management is to blame for this stupid decision. 20% of German exports are cars shipments. Imagine what the impact will be on German factories.

How many other industries lie about their products?

Splitting the United States into Manageable Independent Nations

My contention is that the United States is too diverse to remain as one nation. Western Europe is geographically about the same size as the United States but it is split into many countries that are primarily separated by culture. Yes they each have their own language and that continues despite the European Union and the Euro. What they all seem to have in common is their dislike and perhaps distaste for the other nations in their union.

Hear me out on this topic.

I grew up in Philadelphia and Los Angeles. My knowledge of other parts of the country is mostly limited to the things I read and see on television reports. Most people are like me in that they too have limited knowledge of other parts of this country. A two week vacation trip to NYC does not make you an expert on their culture.

The things we all have in common is our language, our money, and our respect for the constitution that binds us together as a nation. Like Europe we are also separated by culture.

Clearly we do not agree on many subjects from abortion rights, to gun control, to immigration, to world trade. Those divides have made Americans so adamant that their ideas are the only correct ideas as a result no legislation on any of the subjects can be processed by the congress. The resulting animosity has caused the government to shut down due to lack of funding. No one seems to have the courage to lead this nation out of its stubborn freeze.

Stupidly we continue to send the same people to represent us in Washington. We keep hoping that something will change. What is the thing that will motivate our representatives? There is nothing.

Colin Woodward wrote an article in Tufts Magazine titled ‘Up In Arms’. Subtitled, ‘THE BATTLE LINES OF TODAY’S DEBATES OVER GUN CONTROL, STAND-YOUR-GROUND LAWS, AND OTHER VIOLENCE-RELATED ISSUES WERE DRAWN CENTURIES AGO BY AMERICA’S EARLY SETTLERS’, it divides North America into eleven separate ‘Nations’. They look like this.

click map to enlarge

The likelihood is we won’t split apart until things become desperate. At the rate things are going that may be sooner than you think.

A Gun Happy Nation

It’s all baloney. CNN headline is “Our Hearts are Broken” as they display photos of Alison Parker and Adam Ward. Horror and dismay along with weeks of coverage after the massacres at a Colorado movie theater by James Holmes and Sandy Hook elementary school and the 2007 Virginia Tech massacre. But we just can’t give up our guns.

After each event there are flowers laid at a critical location and a call for a gathering to remember those who have been killed. They call it a “vigil.” Then we all go on with life knowing that there will be another horrifying killing within the next few days.

The Los Angeles Times had an article about this very topic in the morning’s edition before the latest killing in Virginia. The article says that the United States is the leader in the most mass killing of any country in the world.

Where is our congress? On vacation forever on this issue.

So despite the killing of nine in a Black church in South Carolina and the killing in Tucson, Arizona that left Gabrielle Giffords maimed for life; Our love for guns trumps all other events. Our preference to own a gun has no limits. There is no price too high to pay that will change our love of guns.

When our leaders say we are the exceptional country is gun ownership part of that? The answer must be yes. Is there another reason we allow everyone to own a gun?

Canada’s birthright citizenship

It turns out that Donald Trump’s commentary is not new. Canada and the United States are the only countries in the world that offer birthright citizenship. Birth tourism is a thriving business in southern California. I was born in Canada. If Donald Trump is elected president of the United States will Canada take me back? From Toronto Life on May 20, 2014.

Jan Wong: Canada’s birthright citizenship policy makes us a nation of suckers

Pregnant women are travelling to Toronto from all over—China, Iran, India, Dubai, Jamaica—to have their babies on Canadian soil, and who can blame them? We’re a nation of suckers

By Jan Wong | Illustration by Graham Roumieu

Jan Wong: Motherlode

I don’t know about you, but I constantly congratulate myself on winning the jackpot in the lottery of life. Thank you, revered ancestor, for your wisdom in choosing Canada. My grandfather, Hooie Chong, came here as a coolie in the 1880s to build the Canadian Pacific Railway. Once it was complete, he paid a special tax to stay on and continue working, as a laundryman. Later, he paid triple head taxes to bring over my grandmother, their son and his wife. Family lore has it that Grandfather Chong was the 10th Chinese person to become a naturalized Canadian (albeit without any right to vote).

Now there’s a much easier path to citizenship: birth tourism. Foreign companies are helping pregnant women take advantage of our breathtakingly generous birthright policy, which grants automatic citizenship—and all the rights and benefits it entails—to any baby born on Canadian soil. You don’t even have to touch the soil: in 2008, a girl born to a Ugandan mother aboard a Northwest Airlines flight from Amsterdam to Boston was deemed Canadian because the plane happened to be in our airspace at the moment of delivery. Currently, Canada and the U.S. are the only two developed countries bestowing birthright citizenship.

For pregnant women actively seeking to jump the immigration queue, birth tourism agencies offer comprehensive package deals. One such agency is the Canada-U.S. Childbirth Counselling Services Company, based in Nanjing, China. According to their website, “the best gift you can give your newborn is a Canadian passport.” The company’s $36,200 package includes airfare, assistance with visas and paperwork, coaching on how to get through the border, private accommodation with Wi-Fi and “a special person to cook and look after your personal needs.” Among the advantages that come with Canadian citizenship, the company lists “great educational resources” and social benefits, including welfare payments of “$500 to $700 a month for a single person,” plus a Canadian passport that provides visa-free entry to more than 200 countries, including the U.S., Japan and western Europe.

Birth tourism consultants recommend that clients apply for tourist visas early and fly before they start to show. Otherwise they are advised to wear loose clothing to the airport. While some airlines such as Air Canada require a doctor’s note to fly after 36 weeks of pregnancy, in this age of political correctness, a woman is unlikely to be questioned about girth. Once at the border, birth-tourism agencies advise expectant mothers to say they’re visiting Canada to sightsee.

From there, the visitor’s experience is fairly straightforward. When she goes into labour, she’s automatically admitted into one of the many local hospitals offering high-quality obstetric care. Wendy Lawrence, in-house legal counsel at Mount Sinai, says the hospital considers every labour a medical emergency. “No matter what, we help them deliver the baby.”

Once the baby is born, the hospital opens a file and assigns a number. Hospital staff aren’t required to check the mother’s citizenship, and they don’t. The province (which is responsible for birth registration) doesn’t ask about the mother’s citizenship either—a lapse Ottawa says it will address. When mother and baby leave the hospital, they move into a short-term rental. Thanks to Canada’s streamlined application process, the parental paperwork is a breeze. It takes just 25 minutes online to register a birth, apply for a birth certificate and acquire a social insurance number. Official documents arrive in the mail a few weeks later; a passport takes another month.

How To Think About the Iran Deal in One Photo!