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If someone anywhere on Earth can manufacture what your company is selling and get it to customers somewhere on Earth cheaper than you can, you will soon be out of a job. The reason is that online shopping means anyone with a computer hookup can get the best possible price. If what your company and by extension your job delivers to the public can be delivered by someone cheaper, then the public will buy that cheaper item. Therefore you should be trying to produce some product which you and your company can make more cheaply than anyone else anywhere in the world is capable of doing. If the only difference in product is the time to delivery then you have a couple of days shipping on your side from some local store house, that is if it is a physical item but if your product can be delivered online as some type of digital information then your only advantage is going to be delivering a better product at a given price. So you need to find out how to deliver a better product and keep delivering that better product. If anyone can re-engineer your product and make it appear to be better in any way then someone will soon be doing that somewhere and get a foot into your door. Ho, you might say, lets just write some laws to keep those foreign products out of our market.

Today that is being attempted with automobile tires and the US is trying to pressure the Chinese not to be selling so many tires in this country. That way more Americans will have jobs in the tire manufacture industry. The Obama administration is raising some trade barriers with the aim of giving more Americans more jobs. The problem is that it simply raises the price on all American tires and on all American cars which in turn raises the price on all American goods sold abroad. That protectionism of a few old jobs in a short time makes it more expensive for Americans to do anything and everything. But, the worst of it is that it also makes it more difficult for Americans to create new jobs. New jobs which better fit the necessities of the modern world.

All of the fore thoughtful people of the non-American world are now are now smiling up their sleeves because they can see that Obama’s trade barriers means he doesn’t understand what makes America strong. So America is weaker relative to them and they are stronger relative to America.