Follow our journey in the global economic arena.  Free trade economics has failed. President Obama had to bail it out in 2008. What we had is gone and what we have now needs to be defined. President Obama bailed out big money interests, banks, investment communities, the stock market and the  “too big to fail’  corporations while ignoring the suffering of the millions who lost their jobs and businesses due to free trade.  Free trade economics is based on divorcing investments from production and  making production portable.

Jack Welch, former CEO of General Electric, captured the new rules of the global economy when he talked of ideally having every plant on a barge” ready to be moved at any time for the sake of cheaper labor costs. Several years ago, when he talked of ideally having “every plant you own on a barge.” The economic logic was that factories should float between countries to take advantage of lowest costs, be they due to under-valued exchange rates, low taxes, subsidies, or a surfeit of cheap labor. Globalization has made Welch’s barge a reality. However, in doing so it has made capital mobility rather than country comparative advantage the engine of trade. And with that change, “free trade” increasingly trades jobs and promotes downward wage equalization. having “every plant you own on a barge.”    Workers become the commodity being traded. They are put on a global block to compete with each other for the same jobs down to the lowest level of wage slaves and even child labor. Free trade economics is about making money on money instead of making t things. It is a race to the bottom since there are more than a billion people in the world who are       willing to work for practically nothing to survive. These workers can not even buy the things they make let alone have anything left over to buy anything the U.S. has left to sell.

President Obama’s bail out money was borrowed from the future and in effect it put tariffs on workers for generations to come. However, the bail out is only a patch on a worn out inner tube which is ready to burst at anytime.

Workers and labor have been degraded and deflated. This represents trillions of dollars in value lost forever. This lost demonstrates the value of workers and labor are an asset and may be a better money standard than all the funny money created out of nothing by the Federal Reserve Bank which has to go through all sorts of manipulations to grow any value.

On top of this, the trade deficit which has broken records since 1994 represents trillion of even more dollars in value lost forever.

Just think what all this money could have accomplished for not only the U.S. but for the whole world. Now we have to face the future that is mortgaged for the sake of survival for the present generations.

Instead of pursuing a solution, President Obama and the “establishment” Democrats and Republicans are call for even more super trade deals. Free trade economics remains the major cause behind our economic and social crisis. All the bail outs in the world will not  alter this fact.