Showing posts with label free trade. Show all posts
Showing posts with label free trade. Show all posts

Friday, January 25, 2013

Character Interview: Patrido Guzman

Today we're sitting down with Patrido Guzman, a former farmer from Zacatecas, Mexico.

(Guzman is a shorter man, but taller than a stereotypical Mexican. He has thinning dark hair.)

Me: Buenas dias, señor Guzman.

Guzman: Buenas dias to you as well.

Me: So let's get started. When were you born?

Guzman: I was born in 1989 in Zacatecas. My father was a farmer, like his forebears before him. We were better off than many campesinos, since we owned our own land and could occasionally hire help. We grew corn, mostly, but we also had chickens and even some cattle.

Me: Do you have any brothers or sisters?

Guzman: Oh yes. I have an older brother Juan and sister Carolina, my younger brothers Eduardo and Quinto, and a younger sister Pilar.

Me: How was the land going to be divided?

Guzman: Well, there wasn't enough to sustain every member of the family, so we couldn't all get a piece. My father thought it best that all of us get work and education so that whoever didn't inherit the land could still make a decent life. My older brother and sister went to Zacatecas City, where my brother found work in the silver mines and my sister as a teacher. I was in secondary school and studying for university when NAFTA came.

Me: What happened then?

Guzman: Free trade is great in principle, but Mexican farmers cannot compete with American corn, especially when it's subsidized to the point it can be sold below cost. We worked harder than ever before and managed to sustain ourselves in the face of American imports for years, but in the end, we couldn't compete.

Me: Your family lost its land?

(Guzman sadly nods.)

Guzman: Losing the land that had been in our family since before the Mexican Revolution was too much for my father. He died of heart trouble a year after we were forced to sell our land and move in with my older siblings in the city. My mother followed him soon afterward.

Me: I'm sorry to hear that.

Guzman: I couldn't attend university and had to go to work right away to help support the family. My younger siblings had to finish school themselves. I went to work in a maquiladora, one of the new factories NAFTA made possible. The Lord takes and He gives, you know?

Me: Job 1:21?

Guzman: The very one. The money was better than many of the other jobs I could have taken, but I hated working there. The supervisor was a real mula who mistreated some of the women in the factory. I didn't want to lose my job and didn't do anything for the longest time and then when I saw him hassling a widow working to feed a child, I told him to go to hell. I got fired the next day.

Me: Yikes.

Guzman: He got his. When the government started fighting the drug cartels, he was found dead. Whether he caught a bullet meant for someone else or someone decided to take revenge for a sister or daughter he put his hands on, I don't know. Good riddance either way.

Me: So what are you going to do now?

Guzman: Well, I've had friends who've gone to work in El Norte.

Me: El Norte?

Guzman: The United States. They made good money doing even the most menial work, enough to send home and build big houses for their families, put siblings and children through school. I once heard of a man who took over a concrete business when the gringo owner retired and he's a millionaire now.

Me: How are you going to get in? I've heard it's hard to get in legally unless you've got special skills and you said you never got to go to university...

Guzman: Well, I knew a man from the factory whose brother knows someone on the other side of the border. A coyote, a smuggler. Juan and Carolina, they loaned me the money to pay him up-front. No need to work for him for years. We're going to meet up in...well, I don't know you. Maybe you work the limones verdes.

Me: Limones verdes? Green lemons?

Guzman: Sorry. Your Border Patrol. They drive around in green trucks.

Me: Got it.

Will Guzman make it to the United States? If you want to find out, check out the short story "Illegal Alien," which appears in the short story collection Flashing Steel, Flashing Fire. Non-Amazon e-books here.

Monday, November 5, 2012

Gary Johnson: What I Like

The other day, I said I would post what I did like about Gary Johnson, the presidential candidate I did vote for, rather than what I didn't like about Mitt Romney and Barack Obama.

It took longer than I intended, but as Horton the Elephant said, "I meant what I said and I said what I meant." So here goes...

*Civil Liberties-This is the absolute biggie. Our nation, from its very beginning, has emphasized the personal freedom of its citizens. In the aftermath of 9/11, various "anti-terrorist" measures jeopardized those freedoms our Founding Fathers fought so hard to attain, freedoms protected and expanded by the hard work and sacrifice of those who came later. The federal government has used its police powers to demand library reading records without a judicial warrant and detained an American citizen without trial. Although some of the most dangerous provisions have been recently struck down, others remain in place and the parts that were ruled unconstitutional might still return, as the Obama Administration has appealed. Johnson said he would not have signed the Patriot Act and the later National Defense Authorization Act that have threatened American liberties.

What good is defeating the Islamists of al-Qaeda whose demands go beyond the U.S. not having bases in the land of Mecca and Medina, all the way to demanding we convert to Islam and abolish separation of church and state if we end up becoming a police state at home?

*Free Trade-At different points in the past, I have praised Obama for supporting free-trade agreements with other nations like South Korea, Panama, and Colombia. I read a book in high school entitled The End of Globalization: Lessons from the Great Depression about the Great Depression and how tariff walls and despotic autarkic regimes like the fascists and Nazis made things worse. There's an adage, "If goods don't cross borders, armies will" and although that doesn't always hold true (people thought the First World War was impossible due to intra-European trading relationships), economic integration has contributed to the cooling of tensions between the United States and China that led to war scares in the late 1990s and things like the capture of a U.S. spy plane by the Chinese early in the Bush presidency. Johnson has strongly committed to free trade.

*Foreign Policy-To be perfectly blunt, war sucks. War is evil. War is dead men (and women), or mangled men and women whose lives will be diminished forever afterward. War is broken families. War is burned houses and cities. War destroys rather than creates. I shed no tears for Saddam Hussein and his two evil sons, but the cost to the United States of the Iraq adventure has been enormous, in terms of money, lives, and America's strategic position.

I am not so naive as to believe the outcome of beating our swords into plowshares will lead to anything but us plowing for those who don't, but that doesn't mean we should go looking for trouble. Bin Laden is dead and the Cold War is over and an interventionist foreign policy is something we are increasingly unable to afford.  It's time to re-evaluate our foreign policy priorities. Full-blown withdrawal from everywhere in the world is not practical--for starters, the U.S. Navy guarantees freedom of the seas for all countries--but there are plenty of areas where cuts can be made that leave us strong enough to deal with legitimate threats. Gary Johnson has explicitly stated he is not interested in picking a fight with Iran, which could turn into a bloodbath and strategic disaster.

*The War on Drugs-Let the record state I do not use any recreational pharmaceuticals. In fact, I do not even drink alcohol or coffee. However, the Drug War has jeopardized Americans' freedoms in various ways (asset forfeiture abuses are a biggie) and cost vast amounts of money. Drug arrests often set otherwise-harmless people on the road to becoming hard-core criminals. Prohibition of alcohol failed; why would doing the same for, say, marijuana, be any better? Johnson has advocated legalizing, regulating, and taxing currently-illegal narcotics. Legalizing and taxing marijuana would save billions of dollars and generate billions more in tax revenue.

I could post some more, but I have some more urgent projects I need to work on. Don't forget to vote tomorrow, or today if the lines aren't too long.

Saturday, December 31, 2011

Congress Lets Ethanol Subsidies and Tariffs Expire

Ethanol subsidy expires; local effect unknown

Hooray for some fiscal responsibility!  Congress allowed a $6 billion corn subsidy to expire and a tariff on Brazilian ethanol to die with it.

This is good for several reasons.

*Firstly, with our massive deficit and national debt, cutting wasteful spending should be a priority and this is a biggie in terms of uselessness.  $6 billion is a drop in the bucket as far as cutting spending is concerned, but one has to start somewhere.  After all, many drops and the bucket is filled.  :)

*Secondly, corn ethanol takes crops that could be used for food and turns them into gasoline.  This drives up the cost of corn and makes the poor pay higher food prices, both at home (where it's less of an issue) and abroad (where it is more).  Ethanol production in Brazil, however, uses stuff leftover from processing sugar (cane fibers and various syrups) to make fuel, so real food isn't wasted.  In any event, even if more sugar could be distilled from the stuff used to make ethanol fuel, sugar is much less of a necessity than corn is.  One does not need sugar to survive, but one definitely needs staple grains.  This is one area where I actually agree with Fidel Castro.  And lest anyone think I'm some left-winger, so does The Economist.  Both the bearded tyrant in Havana and The Economist think Brazil's ideas are better.

*Thirdly, this might be a sign the corn lobby and the sugar lobby aren't as strong as they used to be.   According to one of my former professors at the University of Georgia, the sugar lobby has pushed for high tariffs on sugar that made it cheaper to use high-fructose corn syrup in soda.  Here's a link corroborating this.  And some material from the government too, lest you think the first site is too ideological.  Ending a tariff on imported ethanol made from sugar will benefit Brazilian sugar producers--who've integrated sugar and ethanol production--and I'm sure the American sugar lobby doesn't like that At All.

However, without the subsidy, I suspect ethanol made from sugar will be more competitive now and it will be in the American sugar producers' interest to borrow the Brazilian technique and put it to work here.  If they can grab a big chunk of the American fuel market, they won't need tariffs and quotas to protect themselves from foreign competition.  Getting rid of those will in turn benefit sugar producers in other countries, to whom increasing exports is a matter of survival.

*Fourthly, with the tariff gone, the Brazilians will be able to sell us more of their ethanol and use the profits to increase their own production, which in turn might eventually lead to lower gas prices here.  If we're going to be importing energy resources, they should be from responsible countries like Brazil and not unstable or unfriendly places in the Middle East.

So good on Congress for letting some unnecessary spending expire and making our trade with Brazil just a little bit freer.  And good for the corn-ethanol people for not putting up too much of a fight.

Thursday, November 11, 2010

Obama, South Korea, and Free Trade

http://www.nytimes.com/2010/11/12/world/asia/12seoul.html?_r=1&partner=rss&emc=rss

Good for Barack Obama to be continuing to push for a free trade agreement with South Korea and committing to drastically increase America's exports.  The last thing we want to do is start throwing up barriers to international trade.  During the early days of the Great Depression, nations desperate to protect jobs at home threw up trade barriers, ending what The End of Globalization: Lessons from the Great Depression called the first age of globalization and making the whole situation much worse.

And we all know what happened after that.

However, Obama and Congress should make sure that any free trade agreement with South Korea enables truly free trade.  The Ford Motor Company, which didn't need governmental largesse to get themselves out of trouble when things got bad, has sounded the alarm about some of the shenanigans South Korea pulls to keep foreign cars out.

http://www.ford.com/freetrade

American consumers will benefit from having more automotive choices available to them regardless of whether the free trade agreement enables South Korea's government to continue meddling with foreign automotive imports, but more American cars being exported means more jobs in America, which will help get the economic engine of our country running at full clip again.

The article about how the current US-SK FTA "locks in" the one-way automobile trade doesn't do that great a job proving South Korea's government engages in shenanigans to keep foreign cars out, but the article about trade barriers describes them in chronological detail. 

Some of the stuff like auditing the taxes of those who buy foreign cars strikes me as repressive and undermining the rule of law.  If South Korean cars are truly competitive with foreign cars--and considering how many we buy in the U.S., I'm pretty sure they are--the South Korean government need not indulge in petty goonery to discourage its citizens from buying American cars.

Thursday, July 8, 2010

Obama Does Good: Free Trade

I supported Ron Paul in the Republican primaries and voted for John McCain (however reluctantly) in 2008, so I'm no Obama supporter.

However, I am capable of acknowledging good decisions on the part of politicians I don't agree with.

http://www.nytimes.com/2010/07/08/us/politics/08exports.html?_r=2&partner=rss&emc=rss

Once upon a time, it was the Democratic Party that was the party of free trade, while it was the Republicans who were protectionist.  This is a good sign on Obama's part.  Hopefully if it passes, it will increase the volume of trade between the U.S. and the other three nations and improve the overall economy.

(The Hawley-Smoot Tariff made the Great Depression worse; hopefully turning to free trade and not protectionism will prevent a "double-dip" recession.)

One would hope South Korean restrictions on imported beef and automobiles from the United States would be dealt with as part of any free trade agreement.  After all, the point of free trade is that it's unrestricted.

Of course, it's time for my perennial bugbear, farm subsidies.  I don't think South Korean farmers are in any particular danger of being dumped on by subsidized U.S. agricultural imports, but farmers in less wealthy nations like Panama and Colombia might be.  Hopefully any agreement will include action on farm subsidies.