New fence in Mexico

[heretic888]

You hear the arguments about the difference between 'Free Trade' and 'Fair Trade'. And many of us, perhaps, think it is the 'other' guy who is not trading 'Fair'. Alas, at the expense of foreign farmers, and American laborers, it is not so.

So-called 'free trade' and the so-called 'free market' are myths. They have no reality outside the minds of conservative ideologues and neo-classical economists.

What actually happens in a truly 'free market' is that when certain individuals and organizations acquire wealth and power through entrepeneurship, they essentially 'fix' the playing field so that they maintain this wealth and power, thereby making it more difficult for others to acquire said wealth and power. This kind of thing happened earlier in American history, when a government-mandated 'trust busting' campaign was required to break up the monopolies certain companies had on industry.

The great ideal of the free market is competition. However, once corporations and companies maintain a monopoly, competition essentially becomes non-existent. If you're not part of the conglomerate, you become bankrupt (because, as in this case, there is no way your little ma' n' pa' store can compete with the low-low prices of The Walmart; not if they want to pay the bills, that is).

This is clearly the case in the oil industry today, where as Lou Dobbs recently pointed out on the Daily Show, corporate profits are higher than they've ever been while worker wages per capita are as low as they have been in decades. And that's not even counting the thousands of American jobs that are outsourced each year to deplorable working conditions in developing countries (i.e., the Malaysian adolescent working for ten cents an hour). These corporations are getting away with this kind of stuff because they can. There is no real competition forcing them to do otherwise.

If an economy starts out with a 'free market', it won't stay that way for long, as our own history can attest. Not unless the government intervenes and starts imposing standards and regulations on how things are done.

Just something to think about.

 

[Cryozombie]

Okay, in a nutshell, here is how it works. American farmers are heavily subsidized. The federal government engages directly in price manipulation by paying huge industrial factory farms. This drives down the price of ag products.

American farmers are also subsidized in terms of oil. The oil they use for fertilizer, the oil used for pesticides, and the oil used for transportation is all coming to the market far cheaper then market price.

The end result is that we can dump large quantities of ag products on the market below the cost of what it takes to make them. This is almost exactly what Wal-mart does, after a fashion. The smaller farmers, including the American family farmer, can't compete.

Here is how it connects to you.

When you buy a bag of chips or a cheeseburger, all of those are made with ag products purchased from the large industrial farms who are able to deliver food to you for so cheap because the prices are artificially low. This is akin to shopping at Wal-Mart instead of your local ma and pa store.

In this way, you support the system that drives Mexican farm labor out of business and north of their border in order to make a living.

IMO, this carries a lot of assumption. You assume that if we dont support the mega-farms we support small farms in mexico. I'm in chicgao, I wont go to a mexican farm for my produce... it isnt going to happen. Call it a "global marketplace" but in the same fashion that If I couldnt get my Goth Tshirt at "HOT TOPIC" (big chain) I wouldnt drive to California to get it at "Retail Slut" (indie stroe) I would stay in chicago and buy it from "The Alley" (indie store). Is that forcing californians to Move to Chicago to find work?

Also, everyone wants to Villify Wal-mart as the Great Satan, but lets not forget Wal-mart started as a "Ma and Pa" store... it just happened to become a successful one... same as blockbuster Video, Hot Topic, and numerous other chain stores... they didnt start as Mega Chains. So what you are vilifing is the fact that Sam Walton succeeded. Sour Grapes, much?

 

[michaeledward]

A couple of points ..

First, I own Hot Topic stock. It is not a big chain, and it ain't that good of in investment. I should go short, maybe I could cut my losses. Check the charts. --- now, are either of those two small indie stores you mention public?

Second, once Wal Mart succeeds to the point that they can dictate terms of doing business, - which they do - they are changing the playing field. See heretic888's post. If you can change the rules of the game, its something more than 'sour grapes'.

 

[Makalakumu]

IMO, this carries a lot of assumption.

I'm not sure that it does. All that is being done is following the money. Believe it or not, you vote every time you spend a dollar. And when you spend a dollar in this system, you are "voting" to put these people out of work.

Consumerism and social responsibility is a new thought for Americans. Most of us are totally ignorant of the damage we do. This is why monstrosities like this fence get proposed.

We put the mexican farmer out of work and then we kick them while they are down.

Nice.