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Foreign Dependency Strikes Again

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We are in a position of complete dependence on foreign capital and manufacturing.

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Bennet's excellent piece on the erosion of our country's manufacturing base, which has reduced personal income and caused consumer and public debt to rise to dangerous levels, has indirect historical parallels.

The irony in all this is how similar it is to how the American Revolution against the British in 1768 got started.

Britain would not allow the colonies to produce their own manufactured goods. For example, iron works and the production of almost any finished goods, even fine clothing, were outlawed. The colonies traded tobacco and other agricultural products for all other finished goods from Britain. They therefore really did not have their own economy: it was completely dependent on Britain's economy.

When Britain then imposed the Stamp Tax and the Townshend Acts, there was no income disposable to the masses. Money was short and the colonies were in a depression. They really had little choice but to revolt.

But another little known fact was how much in debt the land barons in America were to British lenders. Everything was on credit and besides the taxes imposed from the British government; creditors began to gouge colonial land-owners by raising interest rates and fees, while the agents representing them in Britain began cheating with British exporters, sending inferior goods.

George Washington even began griping about slavery, not on moral grounds, but because slavery was crowding out the demand for labor, which would attract to America poor white laborers from Ireland and such. Washington knew that eventually these laborers would want to buy land, which he had plenty of and wanted to sell for profit. Slavery was stagnating land prices.

The point is that their economy was imbalanced and doomed to failure. Unlike us, they knew it. They called their situation British Imperialism.

We are in a position of complete dependence on foreign capital and manufacturing. We are subject to price gouging, more so as time goes on and the more we lose our exporting base (it would take years to rebuild it).
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