Free trade is good for America.
That's what many economists would have you believe, based upon centuries-old economic theories. But, if you look at the hard data, if you look at what has actually happened to corporate profits in this country, you will come to the opposite conclusion:
Free trade is not good.
How can I say that when so many say the opposite? Well, look at the figure above. It shows how corporate profits have fared in this country over the past fifty years. The actual data is the blue line. The brown line was calculated with an equation. The close match between them is evident. This equation--the profit equation--can be used to understand how to manipulate profits, in particular, how to maximize them.
Once you know what goes into it, the equation says one thing very clearly: free trade is poison.
This website shows why that is, and why tariffs are an important tool in maintaining the health of the economy, just as important as setting interest rates, and it shows how the elimination of tariffs is sending the wealth of America overseas.
© 2002, 2003, 2004 by Louis Dischler