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For the past 50 years America has been dismantling her protections. Free trade was supposed to make everyone richer. But that was mere propaganda. Look at what really happened, in the figure above. Profits have been declining ever since. And where profits decline, wages will surely follow. See the figure below: |
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The red line shows the drop in tariff rates, while the blue line shows the average hourly wage rate of goods producing workers. Two things happened at the same time: tariffs fell from ten percent to less than half that, and the upward trend in wages stagnated and began to retreat. It's no coincidence. © 2002, 2003, 2004 by Louis Dischler |