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Volume 7, Issue 3  -  July, 2001

Facts About Free Trade

Karl Marx embraced free trade because he knew it would ultimately destroy the sovereignty of nations, the prime Communist goal for creation of the One World socialist state.

George Washington, Alexander Hamilton, Thomas Jefferson and virtually all of the Founding fathers of the United States were protectionists steadfastly opposed to free trade.

The first significant legislation passed by the First congress in 1789 and signed into law by President Washington on July Fourth was a protectionist tariff that provided for over 90 percent of the revenues to operate the new government and encouraged the building of industries and development of family farms.

The tariff produced the bulk of the revenues for the Federal Treasury for 125 years from 1789 to 1913 when it was replaced by the income tax.

England adopted free trade in the 1830’s and soon went from the predominant industrial power in the world to a distant third behind the U.S. and Germany, both of which had practiced strict protectionism to build their industrial base. England’s fall took less than 50 years, about the same time frame as America’s manufacturing and family farming decline sine the end of World War II.

Woodrow Wilson’s first act as president in 1913 was to call a special session of the Congress to dismantle the tariff. A deep depression followed as it did with every attempt to tamper with the tariff for over a century. Domestic manufacturers shut down because they could not compete with foreign products made by cheaper labor abroad being dumped in the U.S. Market.

Franklin Roosevelt's "reciprocal" trade agreements by-passed the Constitution and failed to rescue the New Deal, which was bailed out by war production beginning in 1940.

Bretton Woods Agreement that created the World Bank and International Monetary Fund—and indirectly the GATT/World Trade Organization—was drawn up by a known Soviet agent, Harry Dexter White, to destroy America’s industrial base.

World Bank and IMF have used American tax money to build industries all over the globe to compete with U.S. industries and, in many cases, to drive them out of business. Today our defense industrial base is a shadow of its former self.

Wilson, Roosevelt, Kennedy, Johnson, Carter, and Clinton all pushed free trade as the best way to build the "New World Order." Now Republican President George Bush goes all out for free trade with Mexico and the Western Hemisphere, seeking dictatorial Fast Track authority to create the Free Trade Area of the Americas.

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