Why We NEED Wage And Environmental Parity Tariffs
The Market Ticker - Commentary on The Capital Markets
2017-06-18 07:00 by Karl Denninger
in Environment , 337 references Ignore this thread
Why We NEED Wage And Environmental Parity Tariffs
[Comments enabled]  

One of the central necessary actions I put forward in Leverage is that the United States must implement wage and environmental parity tariffs to prevent companies from arbitraging not only slave-labor conditions in third world nations but also to prevent them from exporting intentional destruction of the environment as a means of evading perfectly-legitimate laws intended to prevent despoiling the land, water and air in the United States.

This perspective is often countered with the claim that I'm xenophobic or some other bit of twaddle.  But you need only look at the facts to discern that this is exactly what we need, and the reason we need it is that American companies have made a business out of poisoning people on purpose -- that is, well beyond the point at which a particular hazard was identified and they have moved production offshore and to third-party and third-world producers in order to keep doing so even after being slammed in the United States.

In epidemiology, follow-up studies usually get bigger and tougher, and for that reason they often contradict one another. But by December 1992, something rare had happened. All three studies—all paid for by the industry—showed similar results: roughly a doubling of the rate of miscarriages for thousands of potentially exposed women. This time the industry reacted quickly. SIA pointed to a family of toxic chemicals widely used in chipmaking as the likely cause and declared that its companies would accelerate efforts to phase them out. IBM went further: It pledged to rid its global chip production of them by 1995.

But IBM did not do so.  Nor did anyone else.  They instead offshored the production to places where such regulations didn't exist and kept using chips made with the same toxic chemicals and processes for 20 years.

There is literally nobody among federal and state prosecutors who will do the right thing here, which is to charge every single one of these firms that so-shifted production and buying on purpose so as to keep using these substances and exposing people to them criminally, and their CEO's with involuntary manslaughter.

This, folks, is why wage and environmental parity tariffs are not just a good idea they're essential.  If we can't count on the government's law enforcement arms to do the right thing and bring criminal charges when they intentionally shift production to places where regulation is non-existent and the air, water, ground and people are poisoned as a routine way of making a living then the only other recourse we have is to make doing so uneconomic by enforcing tariffs that eliminate the financial advantage to using these means or production in the first place.

This isn't, in the main, about money.

It's about the willful and intentional destruction of people for profit exactly as if you literally ate them.

Go to responses (registration required to post)
Main Navigation
MUST-READ Selection:
A One-Sentence Bill To Force The Health-Care Issue

Full-Text Search & Archives
Archive Access

Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.


The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be sent unmodified to lawmakers via print or electronic means or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media, to republish full articles, or for any commercial use (which includes any site where advertising is displayed.)

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.

User: Not logged on
Login Register Top Blog Top Blog Topics FAQ
User Info Why We NEED Wage And Environmental Parity Tariffs in forum [Market-Ticker]
Posts: 2567
Incept: 2008-11-14

Report This As A Bad Post Add To Your Ignored User List
WOW, This is child molesting at its worse. Lock them up and throw away the key. This just makes me SICK!!!

IT'S THE SPENDING STUPID The US must become less a government of men, and more a government of LAW.When people lose everything and have nothing left to lose they lose it -Gerald Celente
Posts: 15043
Incept: 2007-07-05
A True American Patriot!
N 47.72/ W 122.55
Report This As A Bad Post Add To Your Ignored User List
And if you gaze long into an abyss, the abyss also gazes into you

I'm not really into Nietzsche, but he nailed this one. You become whom you fight. It's one of life's unalterable truisms.

If our society/.gov tell those that work for a living that they are to compete with slaves and peasants that live in a toxic **** hole, we will soon find ourselves working for slave/peasant conditions while we eek out a living in a toxic **** hole,

There is no other option.

We didn't have any meaningful immigration from 1924-1965, and we had tariffs protecting our way of life. Life was pretty good during the follow-on years. We even put men on the moon so often that we eventually bored of the idea.

Not everyone is a 130+ IQ. Not everyone can be a business owner. True, many are and good for them, as we need them in society taking risks and increasing wealth.

In the pre-globalism era, you could eek through HS and get a job making stuff or repairing stuff, and support a family with a modest lifestyle. Today? Good luck. Ching-Yang, Pedro, and Sanji will gladly undercut you to live in their **** hole, or worse, bring their **** hole to you while they undercut you.

"My object in life is to dethrone God and destroy capitalism." - Karl Marx
"Destroy the family, you destroy the country." - Lenin
"Education is a weapon whose effects depend on who holds it in his hands and at whom it is aimed." - Stalin
Posts: 1803
Incept: 2009-06-03

East of Sheol
Report This As A Bad Post Add To Your Ignored User List
From the article:

In her new post, a series of cancer cases in South Koreas microelectronics industry drew her interest, including one particular episode that had caught the public eye: Two young women working side-by-side at the same Samsung Electronics workstation and using the same chemicals contracted the same aggressive form of leukemia.

Reminds me of the women that painted radium on the dials of watches.


Rest assured these executives wouldn't allow their daughters to do these jobs.
The perfect example of EVIL. Evil people run evil corporations.

"Mass intelligence does not mean intelligent masses."
Posts: 78
Incept: 2010-06-27

Lawrence, KS
Report This As A Bad Post Add To Your Ignored User List
Wouldn't be at all surprised, if a fair number of "conservatives" reading your piece Karl, bristled at its "anti-business" feeling... (which clearly is NOT there).

My wacky left leaning friends constantly take shots at libertarian philosophy as pro-business destroyers of the environment. Too many so called "Libertarians" reinforce those misplaced perceptions of liberty and freedom.

Admittedly, as a political philosophy, libertarianism hasn't always articulated very well, how the Rule of Law and non-harm of the rights and freedoms of another applies to workers rights and the environment.

My family and I have to breathe the air downwind from somebody... and we need to drink and/or use the water downstream from somebody. If that somebody wants to foul the water air and land on their own property with poison, that is their business up to the point they lose control of said poison... and it encroaches on my family's right to life, liberty and the pursuit of happiness.

Do I have a right to poison my neighbors? F**k no! This shouldn't be a difficult idea... but I think, and as you have CONSTANTLY pointed out... The Rule of Law, or actually the lack of its application in the U.S., is the literal source of 95% or better of our problems.

I wish I was more hopeful that we will avert national disaster and wake the f*** up...

I find myself trying to think much closer to home... be kind to folks less fortunate than I... and look towards who I can help in the course of the day.

Even in all the bull*** going on around us... life is gorgeous and awe-inspiring. It's gotta be a bit lonely telling the truth the way you do online... please, keep it up though. It's important work, Karl
Posts: 4
Incept: 2016-05-09

Dallas, Texas
Report This As A Bad Post Add To Your Ignored User List
Karl I think I love you! Your suggestion is not only sensible but absolutely necessary. There can be no "fair or free trade" with out wage and environmental parity. Can our ossified political system implement such a sensible policy? Doubtful. Are you aware of the memo Larry Summers wrote when he was Chief Economist at the World Bank recommending outsourcing polluting industries to the developing world? I guess these chip manufacturers listened. https://www.counterpunch.org/1999/06/15/....
Here's the conclusion of a study by Mike Vlahos (Professor at the US Naval War college and John Hopkins) on why world systems come apart and why your policy ideas won't be adopted--"The lites became stratified, and politics frozen..."
"He concludes from this study, the situation that we inhabit today [] here in the imperial city in Washington DC, is that it is absolutely hollowed out it is incapable of offering anything to its own people, the American people "
Posts: 148967
Incept: 2007-06-26
A True American Patriot!
Report This As A Bad Post Add To Your Ignored User List
Oh **** Summers -- with a chainsaw, sideways, and I'll eat the remains.

Winding it down.
Posts: 6
Incept: 2017-06-16

La Verne, CA
Report This As A Bad Post Add To Your Ignored User List
So here I am on the seventy first floor with my whiskey and water of the US Bank tower (I still call it the Library Tower) in the heart of Los Angeles (if it has a heart, Los Angeles is more of a destination than an actual city, a biography more than a history, and if NY is like a tall man standing erect, LA is like a tall man lying flat on his back).

I look out to what the view has to offer. Earlier the coast was foggy, but now it's cleared up somewhat, and I can catch the Long Beach/San Pedro/Los Angeles harbor where the majority of these Chinese goods enter from (it's that large multiple cities have claims to it). And up the 710 Long Beach Harbor freeway is main transportation vein the trucking utilizes.

Last year there was a lot of commotion about Bernie Sanders and how we need to protect the environment, wages, American jobs, worker's rights, etc.

California is a very large state, controlling the majority of the West coast line, and the most viable ports, and even crossing its width to get to the hubs of Phoenix is still a good distance. Most people of course know this.

Supposedly California is a "liberal" state, whatever that may mean. It has the image of that being, but define liberalism, or even identify its causes. I'm not concerned whether it's "right" or "wrong", but what someone thinks it is: the proponent or opponent of liberalism.

California just recently approved a $125 billion State budget. Now consider all the counties and cities. There's a tremendous amount of money on an annual basis, even if all of it doesn't materialize in taxes. So whatever cause(s) one wants to identify "liberalism" with, one might suspect that with that much resources there'd be some dent put into these causes. These cases do carry a high price tag, but unchecked corruption carries an infinite price tag.

California politics may have an image of being liberal, I suspect it's not so much, but I am certain California politics is corrupt. I can't speak first hand concerning the other 49 states, but I'd throw my hat in the ring that California is the most corrupt.

So for all of this hype we had in California concerning tariffs and anti-globalizarion California has sat idle. California is a powerful state, it could flex it's muscle with the federal government. But more so, California could just ignore the federal government altogether. That 710 Long Beach Harbor freeway, I could just imagine a long line of State Highway Patrol just pulling truck after truck over. Just the cost in delay would be troublesome.

Any state can shut down any entry regardless of who the federal government does, or make it very troublesome. Something to consider for us in California, on an issue that for the most part the right and the left seem to be in agreement; maybe not in the reasoning but in action.
Posts: 6
Incept: 2017-06-16

La Verne, CA
Report This As A Bad Post Add To Your Ignored User List
And more so, the people of California don't even need the state politicians, the goods coming out of the harbor temporarily bottle neck, which makes it ideal for a protest.
Posts: 1818
Incept: 2009-01-20

Report This As A Bad Post Add To Your Ignored User List
Its funny how all the enviropyschos are fine with it just as long as its not in their backyard. I tried to talk to a friend of mines wife the other day about the economy and gov and such and was amazed at her beliefs. These people really believe in Skittle pooping Unicorns and get upset when you challenge them. I just walk away shaking my head.

The faults of the burglar are the qualities of the financier.
- George Bernard Shaw
Login Register Top Blog Top Blog Topics FAQ