bookmark_borderTrade War! What Is It Good For?

By Daniel Brouse

International Economics 101
What do you think of when you hear the term “trade war”?
The costs and benefits to society are very similar to traditional warfare.
1) Financial Cost. A war is expensive. In a trade war, huge tariffs are placed on the purchase of imports. A tariff is a sales tax paid for by the citizen. Quite often this tax can be as high as 45% or the product even banned altogether. The tax is paid by the citizen to their government. The financial loss from the in-efficiency of paying large taxes is a tremendous burden on the country’s own citizens. In addition, there are usually large costs to the private sector. These costs can include high interest rates, inflation and loss of value to liquid assets. The standard of living declines.
2) Casualties / Loss Of Life. Millions of people are maimed or die in a trade war. The easiest examples in recent history would be the impacts on baby formula or pharmaceuticals. Hundreds-of-thousands of children, as well as, adults in need of medication died because these items were targeted in trade wars. Another example is maiming children by targeting vitamin A (causing childhood blindness.) Typically, trade wars impact the most vulnerable first — babies, the sick and the elderly.

bookmark_borderGMO Rice Wins Humanitarian Award

by Daniel Brouse

WASHINGTON, DC — Although social media is full of unsubstantiated claims about GMO’s, the truth is: there is no evidence that GMO’s are harmful. In fact, quite the contrary. For instance, there are specific breeds of tomatoes, potatoes and carrots being grown for their additional health benefits.

Such a beneficial crop, Golden Rice, has just won a humanitarian award. Not only is Golden Rice more nutritious, it is also less harmful to the environment. There are numerous health benefits including β-Carotene providing vitamin A to children. The environment would also see a positive impact in many parts of the world from Golden Rice. Because the rice is more nutritious, less of it needs to be consumed. In addition, a healthy population is much less taxing on the natural resources.

The United States Patent and Trademark Office stated, “Despite current interventions, vitamin A deficiency is the leading killer of children globally (2-3 million annually) and also the leading cause of childhood blindness (500,000 cases annually). Most cases arise in Asia where the staple food eaten by 3.5 billion people daily, white rice, lacks vitamin A sources typically found in meat and leafy vegetables. These deaths and blindness are preventable.

Golden Rice was genetically enhanced to provide a source of vitamin A for people subsisting mainly on rice. Professors Potrykus and Beyer invented the technology after a decade of research, and have worked with Dr. Dubock since 2000 to donate it to the resource poor in developing countries. Patenting the technology allowed the inventors to partner with Syngenta on commercial projects in return for support of their humanitarian objectives to make Golden Rice available free of charge to those in need. Local Golden Rice varieties are currently being developed by public sector institutions in Bangladesh, China, India, Indonesia, Philippines, and Vietnam, with a target cost no more than white rice.”

In a statement, Golden Rice said, “The White House Office of Science and Technology Policy and the U.S. Patent and Trademark Office (USPTO) have announced the winners of the 2015 recipients of the Patents for Humanity Award, among them the Golden Rice Project.

Patents for Humanity is a USPTO program that recognizes patent owners and licensees working to improve global health and living standards for underserved populations. The program advances the President’s global development agenda by recognizing private sector leaders who bring life-saving technologies to those in need, while showing how patents are an integral part of tackling the world’s challenges.

The award has been bestowed upon the Golden Rice Project, in particular to Prof Ingo Potrykus, Prof Peter Beyer, and Dr Adrian Dubock. Dr Dubock will attend the official award ceremony on 20 April 2015, accompanied by the Golden Rice Humanitarian.”

Unfortunately, many of the countries most in need of Golden Rice have laws against importing rice; however, the Pacific Trade Partnership could help save millions of kids… annually.

bookmark_borderJust Say No To Taxes

by Daniel Brouse

I suggested that there should be little (to no) taxes.

You responded:
How does any of this function
without taxation…?
I would like to know your thinking on this…
it doesn’t seem to be working now
and sure doesn’t favor poor to middle class…
but I think this is too long to write?

I respond:
There are a few ways one can look upon it. Here are two of the shorter versions —

1) Evolution
In the beginning there was Adam and Lilith. There were no taxes. For more generations than I can count, the world got along fine without taxes. In fact, humans prospered in the Garden Of Edan without taxation until we evolved into corrupt beings.

2) Exploitation And Corruption
An economic evaluation of taxation reveals a costs and benefits shutout. That is to say, there are no known benefits to taxation. On the other hand, there are at least a trillion costs to taxing (see the National Deficit for a an exhaustive list.) A small sampling includes…
The cost of taxing productive people
The cost of corruption inherent in collecting money
The cost of additional bureaucracy
The cost of removing the efficiency inherent in the competition of the free market place

You may want to think of it this way… every adult in the USA owes about $42,614.99 just for the Iraq War. (And, that is if we pay off the debt today. Oh, yeah. The cost of life and limb is not included.)

Next time, in order to be fair to everyone… maybe we should be required to pay the tax in advance… instead of 1% of the population footing 40% of the bill?

Additional resources: Occupy Wall Street? Occupy Yourself