Cost Containment

International trade agreements are supposed to create jobs. So far, jobs have been created in emerging markets, but at the expense of American jobs, which is deflationary. Now China, for example, is experiencing massive unemployment, and that is because the benefit of free-trade agreements (considered to be an inflationary cost) has been contained.

The Economic Policy Institute reports real wages and salaries (adjusted for inflation) rose last year due to falling inflation, but income inequality is still increasing. This means the global economy is in a deflationary trend. Prices are deflating because of cost containment. Specifically, labor costs.

The result of containing labor costs is referred to as “structural unemployment,” which suggests it is an ontologically derivative value. Specifically, it derives from the big difference in wages and salaries in international labor markets, and according to big corporates this is caused by unions and minimum-wage laws in developed economies.

Naturally, since it is a free market, after all, multinationals (supra-sovereigns) capitalize on the difference (the comparative advantage).

Super rich, supra-sovereigns intend to deflate wages and salaries (cost containment) but without looking like they are actually intending to do it. (Big CEOs, recruited from elite-identity schools, are paid big bonuses to do it for them.) The way it is now, it has been done by increasing real wages and salaries.

(Isn’t that really clever, indicating deflation with rising real wages and salaries? Or is it really corrupt–intending to profit by doing harm, and then blaming it on the natural “structure” of things–a blaspheme that Kant, for example, said will ALWAYS naturally resolve, and that we are ALL naturally obligated to, because, you see, it’s a free market, existing on demand, after all!)

The externalities will be internally adjusted for. Since the TPP, for example, does not include currency manipulation provisions, mostly because it is not enforceable, there will be tariffs to adjust for cost containment. Adjusting for the externalities will bust containment of the benefit and liquidate the fire that is a fully involved gamma-risk proportion. (This is how Trump pays for “The Wall,” for example.) The so-called “country class” will throw a fit. (Like Hobbes said, their natural identity tends to be self-destructive, naturally subordinated to the on-demand guidance of a democratic authority!) Having their “natural identity” subordinated to technocratic authority is an abomination. Unnatural!

Rand Paul, Paul Ryan, Ted Cruz… (all the avowed Objectivists) will be right out there shouting out, “Who crowned them king!”

Well, that would be the capitalists, because it is a free market, after all, creating jobs, naturally adjusting for the externalities ON DEMAND!


About griffithlighton

musician-composer, artist, writer, philosopher and political economist (M.A.)
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