“The important point of the Times’ mislead is ‘…there’s not much Washington can do.’ In globalization or the trade war only Washington can do. Globalization is nothing more than a trade war with production looking for a cheaper country to produce. The United States, with its open market and high standard of living, can’t compete with China’s communist control and production. The competition in globalization is not company vs. company, but country vs. country. And Washington is AWOL in the trade war. We’ve got to come in from the cold and begin to compete in globalization — to trade.
Subsidizing off-shoring should be immediately stopped by eliminating the tax exemption for off-shored profits unless repatriated. We can levy a 10% surcharge on imports, like President Nixon in 1971. With the economy down, we can eliminate the corporate income tax and produce more revenue with a 2% value added tax.”