The myth of the free market : the role of the state in a capitalist economy by Martinez Mark A. (Mark Anthony) 1961-

Author:Martinez, Mark A. (Mark Anthony), 1961-
Language: eng
Format: epub
Tags: Capitalism, Free enterprise
Publisher: Sterling, VA : Kumarian Press
Published: 2009-05-14T21:00:00+00:00

At Geneva the United States initially wanted to create freer trade by getting Britain to-abolish its. colonial system of preferences (which granted favorable terms of trade to British colonies) but had to settle for an agreement that opened only one market—its own. 44 Although Britain wouldn’t relent on its system of preferences, the United States realized that providing a united front against the Soviets and stability was so important that a skewed deal was considered to be better than no deal. This mind-set helped produce the General Agreement on Tariffs and Trade (GATT), which provided a framework for international trade by establishing specific tariff rates, mandating reciprocity, and obligating member states to the principle of most-favored-nation (MFN) status. But concessions to the British were only the beginning.

Trading American Interests, II: The Nuts and Bolts

To drive home the point that economic recovery and growth in Europe and Japan were essential to countering Soviet expansion, the United States sponsored wartime enemies Italy, Germany, and Japan for membership in GATT. This didn’t sit well with many, especially those who wanted to punish wartime losers. Sponsorship of former allies was followed by a bilateral trade agreement with Japan in 1955, and, according to critics, stands as perhaps the most egregious example of how the United States sacrificed domestic economic interests to larger international political realities. The National Security Council (NSC) got the ball rolling in 1952 by lobbying the White House and other national-level policymakers to get on Japan’s side, by encouraging Japanese exports into the United States. The NSC then convinced the Commerce Department—which stood up for American commercial interests—to drop its opposition to generous policies that supported Japan’s economic recovery. With this decision there was little doubt that the State Department would prevail over the Commerce Department throughout the Cold War.

To be sure, authorities understood that domestic industries would complain about the unilateral opening of US markets. President Truman even created the Tariff Commission—forerunner to the International Trade Commission (ITC)—which heard complaints from domestic producers, made recommendations to the president, and then made a “withdraw” or “modify” proposal on specific tariff issues. Yet the Commission was consistently reluctant to find economic injury to domestic producers in the United States. From the manufacture of clothes pins to handblown glassware, fish products, and footwear (among other products), successive presidents ignored the Tariff Commission and ITC recommendations. These tactics didn’t go over well with several members in Congress.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.