Globalization, not so good for the home team

There's a great article in The Nation that discusses free trade
as a losing game for the USA, and how the government needs to do
something about it. (here's an exerpt that summarizes what I
think, but go read the whole thing)

Americans can choose to blame China or disloyal multinationals, but the problem is grounded in US politics. The solution can be found only in Washington. China and other developing nations are pursuing national self-interest and doing what the system allows. In a way, so are the US multinationals. "I want to stress it's a system problem," Gomory says. "The directors are doing the job they're sworn to do. It's a system that says the companies have to have a sole focus on maximizing profit."

Gomory's proposed solution would change two big things (and many lesser ones). First, the US government must intervene unilaterally to cap the nation's swollen trade deficit and force it to shrink until balanced trade is achieved with our trading partners. The mechanics for doing this are allowed under WTO rules, though the emergency action has never been invoked by a wealthy nation, much less the global system's putative leader. Capping US trade deficits would have wrenching consequences at home and abroad but could force other nations to consider reforms in how the trading system now functions. That could include international rights for workers, which Gomory favors.

Whenever you find yourself in an argument with a liberal or
a canadian about globalization, they'll usually start calling senior
managers at global companies evil, and senior managers are just
out to oppress poor people to become richer. As if all the people
we know are 'good', but once a manager rises to a certain level in
an organization a chip is inserted (or a modification of the
management chip that makes new managers spout the party
line and limit vacation days) that suddenly makes them evil
and take on a ratbert zombie stare.

Some people are assholes and only want become rich, but
99.9999% of the people in the world are only trying to get
ahead using the rules that are already setup in the world.
So a ceo who gets paid based on maxmizing shareholder
value or boosting profits generally can't come out and say he's
going to do something that reduces profits, unless there is a
compelling story that will show his company will come out better
in the end. In fact, if a CEO does something that hurts his company
or shareholders, he runs the risk of doing the enron shuffle into jail.

Since we are nothing but moist robots, much like the
Game of Life simulation, if you setup the rules of the simulation
and press play,
(the rules are)
- maximize profits
- workers are cheaper outside the USA
- there is no penalty for making something outside the USA, bringing it
in and keeping the profits.

the simulaiton will churn and you'll add jobs to poor countries and we'll
lose jobs in the usa. Which might be morally ok, but eventually we'll
have no more good jobs to lose and all that we'll have are debts and
bunch of lawyers. We should rethink free trade, there are countries
who deserve to be able to suckle at the nipples of the USA gravy
train (India, Colombia) and there are counties that should be sucking
high priced store bought formula until they change the way the
operate some more (China, Venezuela). We need some solutions
that protect some jobs without leading to our companies producing
1977 caprice classics.

Ralph Gomery's ideas from the article are:

Gomory's proposed solution would change two big things (and many lesser ones). First, the US government must intervene unilaterally to cap the nation's swollen trade deficit and force it to shrink until balanced trade is achieved with our trading partners. The mechanics for doing this are allowed under WTO rules, though the emergency action has never been invoked by a wealthy nation, much less the global system's putative leader. Capping US trade deficits would have wrenching consequences at home and abroad but could force other nations to consider reforms in how the trading system now functions. That could include international rights for workers, which Gomory favors.

Second, government must impose national policy direction on the behavior of US multinationals, directly influencing their investment decisions. Gomory thinks this can be done most effectively through the tax code. A reformed corporate income tax would penalize those firms that keep moving high-wage jobs and value-added production offshore while rewarding those that are investing in redeveloping the home country's economy.

sounds reasonable to me.