,CAPITAL ,=MATION & ,=EIGN ,TRADE ,PEOPLE 3 ,AU?OR 3 ,PAUL ,MATTICK ,TEXT 3 ,PUBLI%$3 ,SCI5CE @& ,SOCIETY1 VOL4 #b#f1 NO4 #c4 ,SUMM]1 #a#i#f#b4 PP4 #b#i#c-#c#g4 ,TRANSCRIPTION_/,M>KUP3 ,MICAH ,MU]1 #b#a#h4 ,NOTE3 ,A V]SION ( ?IS TEXT APPE>S AS *APT] #ag ( ,MATTICK'S ,M>X & ,KEYNES3 ,! ,LIMITS ( ! ,MIX$ ,ECONOMY4 ,! WORLD'S TRADE & PAYM5TS DILEMMA DATES BACK TO ! ,FIR/ ,WORLD ,W> & ACQUIR$ AN APP>5TLY 9SOLUBLE *>ACT] 9 ! WAKE ( ! ,SECOND ,WORLD ,W>4 ,! TRADE & PAYM5TS BALANCE ( ! ,EUROPEAN NATIONS :I*1 UNTIL REC5TLY1 W]E QUITE CONSI/5TLY UNFAVORABLE CAN BE TRAC$1 ?\< NOT EXCLUSIVELY1 BACK TO ! LOSS ( !SE NATIONS ( MO/ ( !IR =EIGN HOLD+S1 TO !IR 9DEBT$NESS = ,AM]ICAN SUPPLIES1 A *ANGE 9 ! T]MS ( TRADE1 & ! %R9KAGE ( !IR TRADITIONAL M>KETS4 ,! SITUATION WAS AGGRAVAT$ BY ! DET]IORATION ( ,EA/-,WE/ TRADE :I*1 9 P>T1 RESULT$ FROM POLITICAL *ANGES & 9 EV5 GREAT] P>T FROM ! 9DU/RIALIZATION ( C\NTRIES ?AT =M]LY W]E ALMO/ EXCLUSIVELY PRODUC]S ( PRIM>Y PRODUCTS4 ,AM]ICA'S WORLD DOM9ANCE 9 BO? 9DU/RIAL & AGRICULTURAL PRODUCTION DISLODG$ /ILL FUR!R AN ALREADY PREC>I\S 9T]NATIONAL ECONOMIC BALANCE4 ,:]EAS ! LA/ C5TURY F\ND ,EUROPE A CAPITAL-EXPORT+ & ,AM]ICA A CAPITAL-IMPORT+ T]RITORY ) A L>GE & COMPLEM5T>Y TRADE1 ! PRES5T C5TURY REV]S$ ! PICTURE 9 T]MS ( ECONOMIC P[] RELATIONS BUT NOT ) REG>D TO ! G5]AL ECONOMIC CONDITIONS ( N9ETE5?-C5TURY CAPITALISM4 ,AM]ICA BECAME A CR$ITOR NATION UNABLE TO COLLECT & ,EUROPE A CONGLOM]ATION ( DEBTOR NATIONS UNABLE TO PAY4 ,! DIFFICULTIES ?AT >OSE FROM ?IS *ANGE ( SITUATION C\LD NOT BE MET BY ! ,KEYNESIAN 9/RUM5TALITIES DEVIS$ AT ,BRETTON ,WOODS 9 ORD] TO RE/ORE A QUASI-MULTILAT]AL TRADE & PAYM5TS SY/EM4 ,! PO/W> WORLD REQUIR$ NATIONAL ECONOMIC POLICIES ( A K9D ?AT ! ,BRETTON ,WOODS 9/ITUTIONS W]E 9T5D$ TO PREV5T4 ,! ,9T]NATIONAL ,MONET>Y ,FUND & ! ,9T]NATIONAL ,BANK = ,RECON/RUCTION & ,DEVELOPM5T W]E SOON RECOGNIZ$ AS :OLLY 9ADEQUATE & UNABLE TO FULFILL !IR PROCLAIM$ FUNCTIONS4 ,TRADE DELIB]ATIONS DID NOT EV5 TRY TO ELIM9ATE BUT M]ELY TO R$UCE RE/RA9TS1 DISCRIM9ATIONS1 T>IFFS1 QUOTAS1 & EX*ANGE-CONTROLS4 ,V>I\S 0WAIV]S0 & SPECIAL CONCESSIONS TURN$ ! SETTL$ AGREEM5TS 9TO SO MANY *ANG+ AGREEM5TS ON TRADE RE/RICTIONS4 ,T>IFFS PREVAIL$ G5]ALLY FIFTE5 YE>S AFT] ! W> & TW5TY-FIVE ( ! ?IRTY-SEV5 NATIONS P>TICIPAT+ 9 ! ,G5]AL ,AGREEM5T ON ,T>IFFS & ,TRADE 7,G,A,T,T7 /ILL HAD IMPORT RE/RICTIONS BECAUSE ( BALANCE-(-PAYM5TS DIFFICULTIES4 ,PAYM5TS CAN BALANCE ON ANY LEVEL ( PRODUCTION & TRADE4 ,A BALANCE ( PAYM5TS MAY BE LO/ BY WAY ( COMMODITY EX*ANGE1 ?R\< CAPITAL MOVEM5TS1 & ?R\< ! REQUIREM5TS ( W>4 ,BY ITSELF1 A TRADE & PAYM5TS BALANCE MEANS JU/ :AT IT SAYS3 A BALANCE ( TRADE :I* MU/ BE SETTL$ AT A DEF9ITE P]IOD4 ,NEI!R ITS EXI/5CE NOR ITS ABS5CE TELLS ANY?+ AB\T ACTUAL ECONOMIC CONDITIONS1 :E!R !RE IS PROSP]ITY OR DEPRESSION4 ,A P]SI/5T IMBALANCE1 H[EV]1 PO9TS TO A DISRUPTION ( ! M>KET SY/EM & TO IMPORTANT /RUCTURAL *ANGES ( WORLD ECONOMY4 ,BETWE5 #aidf & #aieb ! DEFICIT ( ! 0FREE0 NATIONS ) ! ,UNIT$ ,/ATES ROSE TO AB\T #cd BILLION DOLL>S4 ,SOME F\R BILLION DOLL>S W]E TAK5 C>E ( BY GOLD & DOLL> RES]VES ( ! DEFICIT NATIONS2 OV] ?IRTY BILLION DOLL>S BY WAY ( ,AM]ICAN AID4 ,AM]ICA'S 0FAVORABLE BALANCE ( TRADE10 :I* AT TIMES AM\NT$ TO T5 BILLION DOLL>S A YE>1 WAS (FSET BY LOANS & GRANTS4 ,TRADE & PAYM5TS QUE/IONS C\LD NOT BE LEFT TO ! VICISSITUDES ( M>KET EV5TS1 AS ! GAP BETWE5 ,EUROPEAN & ,AM]ICAN PRODUCTION WAS F> TOO WIDE4 ,! ,UNIT$ ,/ATES' FAVORABLE BALANCE ( TRADE 9 #aidh WAS #e4#e BILLION DOLL>S & H] PRODUCTION 9 ! SAME YE> EXCE$$ ?AT ( #aicg BY SEV5TY P] C5T4 ,! DEFICIT ( ! ,M>%ALL ,PLAN C\NTRIES WAS #e4#a BILLION DOLL>S & !IR PRODUCTION WAS /ILL BEL[ ! PREW> LEVEL4 ,AS TRADE WAS NOT POSSIBLE1 AID WAS UNAVOIDABLE TO MA9TA9 ! 0IMP]FECT0 M>KET SY/EM DESPITE ITS OBVI\S OBSOLESC5CE4 ,BUT S9CE1 = SOME IDEOLOGICAL REASONS1 TRADE APPE>S PREF]ABLE TO AID1 IT WAS1 & (T5 IS1 SUGGE/$ ?AT TRADE BE SUB/ITUT$ = AID BY ABOLI%+ ,AM]ICAN IMPORT RE/RICTIONS4 ,BY ADH]+ TO A HI< T>IFF & BY 9SI/+ UPON IMPORT QUOTAS = A NUMB] ( PRODUCTS1 ,AM]ICAN ECONOMIC =EIGN POLICY1 IT IS SAID1 FAVORS ! 9T]E/S ( P>TICUL> 9DU/RIES & PRESSURE GR\PS AT ! EXP5SE ( ! NATIONAL 9T]E/4 ,& S9CE1 ADMITT$LY1 A DIFF]5T C\RSE W\LD LEAD TO UNEMPLOYM5T & LIQUIDATION 9 AFFECT$ ,AM]ICAN 9DU/RIES1 IT IS SUGGE/$ ?AT !SE EV5TUALITIES %\LD BE MITIGAT$ ?R\< SUBSIDIES1 COMP5SATIONS1 & BY CONV]SIONS TO O!R L9ES ( BUS9ESS )\T ANY FUR!R SPECIFICATIONS :AT !SE L9ES C\LD BE4 ,SU* SUGGE/IONS1 H[EV]1 >E NO MORE ?AN A REQUE/ TO %IFT GOV]NM5TAL AID FROM ! 9T]NATIONAL TO ! NATIONAL LEVEL4 ,! LIB]ALIZATION ( TRADE & ! LIFT+ ( EX*ANGE CONTROLS CAN NOT ALT] EXI/+ ECONOMIC DIFFICULTIES4 ,IT WAS !SE DIFFICULTIES ?AT L$ TO TRADE RE/RICTIONS & CONTROLS 9 ! FIR/ PLACE4 ,5D+ ! T>IFF SY/EM W\LD1 AT BE/1 ALLOCATE 9T]NATIONAL TRADE SOME:AT DIFF]5TLY )\T NECESS>ILY 5L>G+ IT4 ,IT W\LD NOT REMOVE ! DISCREPANCY 9 PRODUCTIVITY BETWE5 ! ,AM]ICAN & ! =EIGN ECONOMIES4 ,A UNILAT]AL 5D+ ( ! T>IFF SY/EM W\LD ONLY BE ANO!R =M ( ,AM]ICAN AID TO LESS PRODUCTIVE NATIONS4 0,TO MANY C\NTRIES1 MOREOV]1 0! PRES5T 9ADEQUACY ( RES]VES1 ! DIFFICULTIES & UNC]TA9TIES ( EXP&+ & MA9TA9+ MU* L>G] EXPORTS 9 AN 9CREAS+LY COMPETITIVE WORLD1 ! WIDE OSCILLATIONS ( RELATIVE PRICES & ( ! T]MS ( TRADE1 !SE ALL APPE> TO PRES5T A CONV9C+ >GUM5T = ! RET5TION ( ESS5TIAL CONTROLS OV] IMPORTS4 444 ,& !Y CAN >GUE ) SOME JU/IFICATION ?AT ! ORD9>Y OP]ATIONS ( A FREE M>KET--! RISE ( C]TA9 EX*ANGE RATES1 = 9/ANCE1 & ! FALL OR MA9T5ANCE ( O!RS--W\LD PRODUCE ALMO/ EXACTLY ! SAME EFFECT SOME:AT MORE SL[LY & LESS C]TA9LY1 & W\LD BE EQUALLY DISCRIM9ATORY 9 ! S5SE ?AT ! CONSEQU5CES W\LD AFFECT DIFF]5TLY ! C\NTRY'S TRADE ) O!R NATIONS40.<#a.> ,:5 BO?1 DISCRIM9ATION & ! LACK ( IT1 T5D TO HAVE ID5TICAL EFFECTS1 DISCRIM9ATORY POLICIES MAY BE ADJUDG$ A PRECONDITION = ! CONT9U$ EXI/5CE & PREC>I\S 0BALANCE0 ( ANY P>TICUL> NATION & = ! WORLD AT L>GE4 ,!RE EXI/S !N ONLY AN APP>5T DESIRE TO RE/ORE1 NOT AN ACTUAL POSSIBILITY ( RE/OR+1 A FREE MULTILAT]AL TRADE & PAYM5TS SY/EM4 ,:E!R TO HAVE RE/RICTIONS & CONTROLS IS NOT S]I\SLY DISCUSS$2 :AT IS DEBAT$ 9 ALL ! TALK AB\T FRE$OM ( TRADE & ECONOMIC 9TEGRATION IS ! DEGREE ( DISCRIM9ATION & ! DIRECTION IT IS TO TAKE ) REG>D TO V>I\S NATIONAL 9T]E/S4 ,IT BECOMES APP>5T ?AT 0TOO MU* TIME HAS BE5 WA/$ 9 ELABORAT+ RULES = A WORLD ?AT CANNOT BE RECREAT$1 9/EAD ( WORK+ \T :AT CAN BE DONE 9 A WORLD ?AT EXI/S4 ,:AT CAN BE ATTA9$ IS 444 A /ATE ( AFFAIRS 9 :I* C\NTRIES >E UND] AN OBLIGATION TO MAKE !IR TRADE & PAYM5TS AS FREE AS !Y CAN BE MADE1 BUT ) ! RECOGNITION ?AT !RE MU/ 9EVITABLY BE GRADES ( FRE$OM40.<#b.> ,I,I ,ECONOMIC 9TEGRATION CAN MEAN DIFF]5T ?+S--A FREE WORLD M>KET ) ITS COMPETITIVE 0EQUILIBRIUM0 ME*ANISM1 AS WELL AS POLITICAL UNIFICATION & PLANN$ SUPRANATIONAL 9T]V5TIONS 9 ! ECONOMY4 ,! LATT] TYPE ( 0UNIFICATION0 & ECONOMIC 09TEGRATION0 WAS1 = 9/ANCE1 9CORPORAT$ 9 ! ,NAZI VISION ( A ,EUROPE UND] ,G]MAN CONTROL4 ,! POLITICAL \TCOME ( ! W> =C$ ! ,UNIT$ ,/ATES TO ACCEPT ,EUROPEAN ECONOMIC POLICIES :I* W]E DISCRIM9ATORY TO H] [N ECONOMIC 9T]E/S 9 ORD] TO 9DUCE A RAPID ,EUROPEAN RECOV]Y4 ,EUROPEAN ECONOMIC 09TEGRATION0 F\ND /RONG ,AM]ICAN SUPPORT1 EV5 ?\< IT DID NOT SUIT ALL ! ,EUROPEAN NATIONS1 LEA/ ( ALL ,GREAT ,BRITA91 UNABLE AS %E WAS TO =GET H] PREVI\S SPECIAL POSITION 9 WORLD ECONOMY4 ,AL?\< 9 ITS CONCEPTION 09TEGRATION0 WAS AT ONCE ECONOMIC & POLITICAL1 AT ITS />T IT WAS PURELY A MONET>Y MATT] 9 ACCORDANCE ) ! ,KEYNESIAN VIEW ( ?+S :I* CONSID]S ECONOMIC ACTIVITIES MA9LY FROM A MONET>Y PO9T ( VIEW4 ,SEV]AL HUNDR$ *ANGES 9 EX*ANGE RATES 9 CONCURR5CE ) DIFF]5T DEGREES ( 9FLATION 9 V>I\S C\NTRIES HAD L$ 9TO AN IMP5ETRABLE JUNGLE ( 9CONV]TIBLE CURR5CIES4 ,TO RE/ORE AT LEA/ P>TIAL CONV]TIBILITY WAS !N REG>D$ AS ! />T+ PO9T = AN 9CREASE ( TRADE & A CONSEQU5T RISE ( PRODUCTION4 ,! FIR/ ATTEMPT 9 ?IS DIRECTION WAS ! ,EUROPEAN ,PAYM5TS ,UNION 7,E,P,U71 MODEL$ AFT] ,KEYNES' ,9T]NATIONAL ,CLE>+ ,UNION1 PROPOS$ DUR+ ! W>4 ,IT WAS TO MAKE POSSIBLE A BETT] TRANSF]ABILITY ( ,EUROPEAN CURR5CIES4 ,?IS WAS REG>D$ AS A PRECONDITION = ! ELIM9ATION ( IMPORT RE/RICTIONS1 EXPORT SUBSIDIES1 & O!R MEASURES ?AT HAMP]$ 9TRA-,EUROPEAN TRADE4 ,IT WAS ALSO REG>D$ AS AN 9-BETWE5 /ATION ON ! ROAD TO UNIV]SAL CONV]TIBILITY 9 AN ALTOGE!R FREE-TRAD+ WORLD4 ,! ,E,P,U--OR ! ,EUROPEAN ,MONET>Y ,AGREEM5T )9 ! FRAME ( ! ,ORGANIZATION = ,EUROPEAN ,ECONOMIC ,COOP]ATION 7,O,E,E,C7 AT A LAT] DATE--SUCCE$$ ONLY 9 W>D+ (F A POSSIBLE FUR!R DET]IORATION ( ! ,EUROPEAN M>KETS4 ,& ?IS NECESSITAT$ SUCCESSIVE MANIPULATIONS ( ! ,E,P,U ITSELF4 ,ITS REGULATORY ME*ANISM RAN \T )9 ! FRAME ( A PRE>RANG$ QUOTA SY/EM ( ALLOTT$ DOLL> RES]VES1 :I* REFLECT$ ! ECONOMIC P[] RELATIONS ( ! P>TICIPAT+ C\NTRIES AT ! TIME ( ! ,E,P,U'S 9ITIATION4 ,AS ! =TUNES ( ! 9DIVIDUAL NATIONS *ANG$1 ! 9TRA-,EUROPEAN TRADE & PAYM5TS SY/EM BECAME ONCE MORE A MATT] ( NATIONAL POLICY4 ,DEBTOR NATIONS MA9TA9$ !IR RIY P[] IMPLI$ DIFF]5T ?+S = ,FRANCE & ,5GL& ?AN = ! ,UNIT$ ,/ATES4 ,= ! LATT]1 IT WAS FIR/ ( ALL A MILIT>Y DECISION1 BUT = ,FRANCE IT WAS ACCEPTABLE ONLY IF ACCOMPANI$ BY GU>ANTEES ?AT SECUR$ H] ,EUROPEAN POSITION4 ,YET H] ACTUAL WEAKNESS & 9ABILITY TO OPPOSE ,AM]ICAN POLICIES 9DUC$ ,FR5* POLITICIANS TO ANTICIPATE ! DANG]\S ASPECTS ( ?IS DEVELOPM5T & TO ANSW] !M 9 ADVANCE ) ! ,S*UMAN ,PLAN4 ,! PURPOSE ( ?IS ,PLAN1 OR ! ,EUROPEAN ,COAL & ,/EEL ,COMMUNITY 7,E,E,C71 COMPRIS+ ,FRANCE1 ,G]MANY1 ,HOLL&1 ,BELGIUM1 ,ITALY & ,LUXEMBURG1 WAS TO CREATE A S+LE M>KET = COAL & /EEL 9 ALL ( ,WE/]N ,EUROPE4 ,ADH]5CE BY ,FRANCE & ,G]MANY MADE P>TICIPATION BY ! SMALL] NATIONS PRACTICALLY M&ATORY4 ,BRITA9 ASSOCIAT$ H]SELF M]ELY = ! EX*ANGE ( 9=MATION1 )\T SURR5D]+ CONTROL OV] H] [N COAL & /EEL AFFAIRS4 ,! NEW SUPRANATIONAL 9/ITUTION WAS HAIL$ AS ! BEG9N+ ( A NEW ]A 9 9TRA-,EUROPEAN RELATIONS1 AS ! H>B+] ( BETT] ?+S TO COME4 ,! DRAW+ 9TO ! S+LE M>KET ( O!R PRODUCTS BESIDES COAL & /EEL & ! CREAT+ ( A ,EUROPEAN ATOMIC 5]GY PROGRAM W]E TO CULM9ATE 9 A ,WE/]N ,EUROPEAN ,F$]ATION1 A V]ITABLE ,UNIT$ ,/ATES ( ,EUROPE4 ,9 A MORE PROSAIC MOOD1 H[EV]1 ! ,E,E,C APPE>$ TO BE M]ELY AN EXT5SION ( ! ,EUROPEAN /EEL C>TEL ( PRE-,HITL] DAYS4 ,?IS C>TEL WAS A PRICE-FIX+ >RANGEM5T :OSE EXI/5CE 9DICAT$ ! RELATIVE CAPITAL /AGNATION :I* PREC$$ ! ,SECOND ,WORLD ,W>4 ,& 9 #a#i#e1 :5 ! ,S*UMAN ,PLAN WAS BORN1 !RE W]E SIGNS ( IMP5D+ SURPLUSES ( COAL & /EEL1 SO ?AT ! ,PLAN WAS PROBABLY CODET]M9$ BY ! DESIRE TO AVOID ANO!R P]IOD ( CUT?ROAT COMPETITION4 ,YET1 AT ! TIME ( ITS RATIFICATION1 ! SITUATION HAD ALREADY *ANG$ 9 FAVOR ( A G5]AL EXPANSION ( COAL & /EEL PRODUCTION4 ,!RE WAS N[ A NE$ = COLLABORATION NOT SO MU* TO SECURE ! GIV5 M>KET AS TO ASSURE A L>G] PRODUCTION4 ,:ATEV] ! FUTURE W\LD BR+1 = ! TIME BE+ ! ,E,E,C SATISFI$ ALL ?OSE 5GAG$ 9 ITS F\NDATION4 ,= ,AM]ICA IT 9CREAS$ ! W> POT5TIAL ( ! ,WE/2 = ,G]MANY IT (F]$ A *ANCE = A QUICK] RECOV]Y1 & = ,FRANCE IT PROVID$ ! OPPORTUNITY TO P>TICIPATE 9 ! CONTROL ( ! APP>5TLY 9EVITABLE DEVELOPM5T ( ,G]MANY'S PRODUCTIVE P[] & W>-MAK+ ABILITY4 ,EXI/+ = A TIME ONLY 9 LAT5T =M1 ! ,E,E,C1 SOON AFT] ! ,KOREAN W>1 9CREAS$ ITS ACTIVITIES4 ,AS 9 PREVI\S P]IODS ( PROSP]ITY1 ! ECONOMIC UPSW+ AFT] #aieh CREAT$ A CLIMATE ( OPTIMI/IC READ9ESS TO =EGO SOME ( ! /IFL+ MEASURES ( PROTECTIONISM4 ,A S]IES ( T>IFF R$UCTIONS 9 #aiei W]E C\PL$ TO ! PROCLAIM$ 9T5TION ( REA*+ A S+LE1 SIX-NATIONS1 T>IFF-FREE M>KET BY #aife OR #a#i#g4 ,AL?\< ! FIR/ T>IFF R$UCTIONS W]E NOT ( GREAT SIGNIFICANCE1 !Y DID HELP 9ITIATE A RA% ( ECONOMIC *ANGES ( GREAT] IMPORTANCE4 ,A S]IES ( 9DU/RIAL AGREEM5TS L$ TO MANY M]G]S ( COMPANIES1 5COMPASS+ JO9T SELL+ & PRODUCTION1 ! POOL+ ( RES\RCES1 SPECIALIZATION & RATIONALIZATION4 ,AS ! REMOVAL ( TRADE B>RI]S 9CREASES BO? COMPETITION & PROTECTION AGA9/ COMPETITION1 SO IT FO/]S CAPITAL CONC5TRATION :I*1 9 TURN1 /R5G!NS ! COMPETITIVE ABILITIES ( ! 9DU/RIES )9 ! ,E,E,C4 ,BY PROMIS+ GREAT] PR(ITABILITY1 IT ATTRACT$ A GREAT AM\NT ( NEW ,AM]ICAN CAPITAL4 ,:ILE ALL ?IS SPELL$ 0PROSP]ITY0 IT ALSO 9CREAS$ 9T]NATIONAL COMPETITION4 ,BUT COMPETITION 9 A G5]ALLY EXP&+ ECONOMY M]ELY ACCEL]ATES ! UPW>D SW+4 ,EUROPEAN PRODUCTION & EXPORTS 9CREAS$1 CUTT+ ! ,UNIT$ ,/ATES TRADE SURPLUS TO ITS N>R[E/ M>G9 S9CE ! 5D ( ! W>4 ,H[EV]1 ! ,E,E,C DID NOT LEAD TO ! POLITICAL & ECONOMIC UNIFICATION ( ! :OLE ( ,WE/]N ,EUROPE4 ,SOME NATIONS1 & ,5GL& 9 P>TICUL>1 W]E NOT WILL+1 OR F\ND IT DISADVANTAGE\S1 TO SUBJECT EV5 P>T ( !IR ECONOMIC ACTIVITIES TO SUPRANATIONAL CONTROL4 ,:AT WAS REALIZ$1 9 ?IS RESPECT1 WAS A K9D ( SUPRANATIONAL PROTECTIONISM4 ,) ! ,E,E,C A REALITY1 ,5GL& JO9$ SIX O!R NATIONS 7,AU/RIA1 ,D5M>K1 ,NORWAY1 ,PORTUGAL1 ,SW$51 ,SWITZ]L&7 9 A ,EUROPEAN ,FREE ,TRADE ,ASSOCIATION 7,E,F,T,A7 TO C\NT]ACT ! POSSIBLE COMPETITIVE ADVANTAGES ( ! SIX-NATION TRAD+ BLOC4 ,RETA9+ FULL CONTROL OV] !IR NATIONAL ECONOMIC POLICIES1 9CLUD+ T>IFFS ) C\NTRIES \TSIDE ! ,E,F,T,A1 !SE SEV5 NATIONS PL$G$ !MSELVES TO CUT T>IFFS )9 ! ,E,F,T,A 7LEAD+ TO !IR COMPLETE ABOLI%M5T BY #a#i#g7 TO FAIR COMPETITION1 TO ! EQUALIZATION ( SUPPLY CONDITIONS1 & TO A FULL EMPLOYM5T POLICY4 ,AS 9 ! ,E,E,C1 SO 9 ! ,E,F,T,A1 AGRICULTURAL PRODUCTS W]E NOT 9CLUD$ 9 ! PLANN$ T>IFF R$UCTIONS4 ,! COMMON M>KET1 BY LEAD+ TO A DIVISION ( ! ,EUROPEAN ECONOMY 9TO TWO TRAD+ BLOCS CREAT$ AS MANY PROBLEMS AS IT SOLV$4 ,:ILE IT DOES 9CREASE FREE TRADE BEYOND NATIONAL B\ND>IES1 IT MAY DECREASE IT ON AN 9T]NATIONAL SCALE4 ,! GA9S IMPLI$ 9 ! EXI/5CE ( FREE-TRADE >EAS >E L>GELY (FSET BY DIFFICULTIES >IS+ FROM ! DISRUPTION ( E>LI] TRAD+ PRACTICES BAS$ ON PREVI\SLY E/ABLI%$ PATT]NS ( PRODUCTION4 ,:ILE CAPITAL WILL P]HAPS FL[ MORE FREELY )9 ! SEP>ATE TRAD+ BLOCS1 IT WILL MO/ LIKELY FL[ LESS FREELY FROM ONE BLOC TO ANO!R4 ,& :ILE ! TWO TRAD+ >EAS MAY BE CONSID]$ AS A FIR/1 & AT ?IS JUNCTURE ! ONLY POSSIBLE /EP1 T[>D A S+LE M>KET = ALL ! ,O,E,E,C C\NTRIES & BEYOND1 IT MAY ALSO1 9 TIME1 DEMON/RATE ! HOPELESSNESS ( ! TASK ( RE9TEGRAT+ EI!R ! ,EUROPEAN OR ! WORLD ECONOMY4 ,IT ALL DEP5DS UPON ! ECONOMIC WEA!R1 :E!R OR NOT A NECESS>Y DEGREE ( WORLD PROSP]ITY CAN BE MA9TA9$4 ,:ATEV] ! EXPECTATIONS OR APPREH5SIONS ASSOCIAT$ ) ! E/ABLI%M5T ( ! TWO SEP>ATE ,EUROPEAN M>KET SY/EMS1 !IR V]Y EXI/5CE--QUITE ASIDE FROM !IR EV5TUAL DE/9Y--PO9TS1 ON ! ONE H&1 TO ! 9CREAS+ 9ABILITY TO MA9TA9 NATIONAL ECONOMIC POLICIES1 &1 ON ! O!R H&1 TO ! IMPROBABILITY ( A RETURN TO A 0FREE0 WORLD M>KET4 ,?IS WILL NOT PREV5T FUTILE ATTEMPTS 9 EI!R DIRECTION4 ,:5 NECESS>Y1 NATIONS WILL ALWAYS T5D TO 9SULATE !IR ECONOMY AGA9/ ! DETRIM5TAL EFFECTS ( 9T]NATIONAL COMPETITION4 ,YET1 !Y CANNOT CEASE HOP+ = & WORK+ T[>D ! RE/ORATION ( AN 9T]NATIONALLY 9TEGRAT$ ECONOMY4 ,REGIONAL GR\P+S CON/ITUTE1 9 A S5SE1 A K9D ( 0COMPROMISE0 BETWE5 !SE EXTREMES1 SO AS TO OV]COME ! LIMITATIONS ( NATIONAL ECONOMY 9 A WORLD NOT SUSCEPTIBLE TO RATIONAL >RANGEM5TS ( 9T]NATIONAL ECONOMIC AFFAIRS4 ,! ,EUROPEAN TRADE BLOCS 9ITIAT$ A G5]AL MOVEM5T FROM ,AFRICA TO ,LAT9 ,AM]ICA = CU/OM UNIONS & 9TRANATIONAL M>KET >RANGEM5TS4 ,:ILE ! REGIONAL 0SOLUTION0 SEEMS ! ONLY ONE AVAILABLE1 IT APPE>S AS A 0SOLUTION0 ONLY ON ! ASSUMPTION ?AT IT WILL MOVE T[>D1 & NOT AWAY1 FROM WORLD-WIDE 9TEGRATION4 ,AL?\< ! EXI/5CE ( ! TWO TRAD+ BLOCS DEMON/RATES ! PRES5T IMPOSSIBILITY ( 9TEGRAT+ 9TO A COMMON M>KET1 OR A FREE TRADE >EA1 ALL ! ,EUROPEAN C\NTRIES1 ?IS HOP$-= EV5TUALITY REMA9S ! PROCLAIM$ GOAL ( BO? ! ,E,E,C & ! ,E,F,T,A4 ,?IS GOAL1 H[EV]1 IS LESS LIKELY TO BE REA*$ ! LONG] ! TRAD+ BLOCS RETA9 !IR SEP>ATE EXI/5CE4 ,NEWLY EVOLV+ PATT]NS ( COMPETITION WILL T5D TO H>D52 & BREAK+ UP REGIONAL >RANGEM5TS MAY PROVE EV5 MORE DIFFICULT ?AN OV]COM+ NATIONAL PROTECTIVE POLICIES4 ,IF ONE GR\P %\LD GA9 EXCEPTIONAL ADVANTAGES BY VIRTUE ( ! REGIONAL >RANGEM5T1 IT WILL NOT SACRIFICE ?IS ADVANTAGE TO ! PR9CIPLE ( FREE TRADE1 :I*1 AT ANY RATE1 W\LD /ILL BE OP]ATIVE ONLY )9 ! ,EUROPEAN M>KETS4 ,I,I,I ,! 0F9AL0 SOLUTION ( ! WORLD'S TRADE & PAYM5TS PROBLEM IS !N CONCEIV$ AS A M]G] ( ALL ! V>I\S TRADE >EAS & 9 0! ECONOMIC FUSION ( ! FREE WORLD'S NATIONS40.<#c.> ,IT IS RECOGNIZ$1 ( C\RSE1 ?AT SU* A 0FUSION10 9VOLV+ ! ELIM9ATION ( T>IFFS & O!R TRADE RE/RICTIONS1 W\LD AGGRAVATE ! PROBLEMS = NATIONS COMPET+ ) ! ,UNIT$ ,/ATES4 ,BUT ?IS IS TO BE DEALT ) BY A 0RELATIVELY UNIMP$$ MOVEM5T ( CAPITAL & LABOR10 BY AGREEM5T ON ! P>T ( ! 0/RONG0 NATIONS TO 0EXT5D GREAT BLOCS ( CR$IT TO WEAK] NATIONS TO TIDE !M OV] !IR BALANCE-(-PAYM5TS DIFFICULTIES10 & BY ! CREATION ( 0AN 9T]NATIONAL FUND TO EASE ! PA9 ( UNEMPLOYM5T & ( CAPITAL LIQUIDATIONS 9 SEGM5TS ( ANY ECONOMY H>D-HIT BY ! PROCESS ( 9TEGRATION40.<#d.> ,AGA9/ ! 0RELATIVELY UNIMP$$0 MOVEM5T ( CAPITAL /&S1 H[EV]1 ! ACTUAL DECL9E ( CAPITAL EXPORTS 9 REC5T HI/ORY4 ,AM]ICAN CAPITAL EXPORTS HAVE BE5 LESS ?AN ! 9FL[ ( E>N+S FROM ,AM]ICAN LONG-T]M =EIGN 9VE/M5TS4 ,IT IS (T5 PO9T$ \T ?AT ! L[ PROPORTION ( TOTAL ,AM]ICAN PRODUCTION ?AT GOES 9TO EXPORTS & H] RELATIVELY LIMIT$ CAPITAL EXPORTS TE/IFY TO A LACK ( 0ECONOMIC IMP]IALISM0 ON ! P>T ( ! ,UNIT$ ,/ATES1 & ?AT ,AM]ICAN COMPETITION CAN CONSEQU5TLY NOT BE BLAM$ = ! ECONOMIC DIFFICULTIES BESETT+ ! WORLD4 ,FROM A CONSI/5T CAPITALI/ PO9T ( VIEW1 H[EV]1 IT W\LD BE JU/ ?IS LACK ( 0ECONOMIC IMP]IALISM0--:ATEV] ITS CAUSE--:I*1 TO A L>GE DEGREE1 ACC\NTS = ! CONTRACTION ( ! WORLD M>KET4 ,DUR+ ! P]IOD FROM #ahg TO #a#i#a#c1 = EXAMPLE1 0,BRITA9 9VE/$ ABROAD TWO-FIF?S ( H] SAV+S1 I4E41 SOME?+ LIKE ONE-T5? ( H] 9COME4 ,BY #aiac H] =EIGN 9VE/M5TS1 EQUAL TO NE>LY F\R-N9?S ( H] HOME 9VE/M5TS REPRES5T$ ONE-?IRD ( ALL ,EUROPEAN =EIGN 9VE/M5TS & CONTRIBUT$ ONE-T5? ( H] NATIONAL 9COME40.<#e.> ,! EQUIVAL5T ( ?IS ON ! SCALE ( ! N[ DOM9AT+ ,AM]ICAN ECONOMY 0W\LD BE AN ,AM]ICAN =EIGN 9VE/M5T ( AB\T #f BILLION DOLL>S YIELD+ ?IRTY BILLION DOLL>S A YE> 9COME & GR[+ SOME:AT LIKE FIFTE5 BILLION DOLL>S A YE>40.<#f.> ,9/EAD1 ,UNIT$ ,/ATES =EIGN PRIVATE 9VE/M5TS AFT] ! ,SECOND ,WORLD ,W> HAVE BE51 = A LONG TIME1 AT A RATE LESS ?AN ONE BILLION DOLL>S A YE>1 REPRES5T+ LESS ?AN ONE-?IRD ( ONE P] C5T ( H] NATIONAL 9COME1 & SL[LY RIS+ TO ?REE BILLION DOLL>S 9 #aieg & TO #d4#e BILLION DOLL>S !REAFT]4 ,TOTAL 9VE/M5TS ABROAD W]E E/IMAT$ TO BE AB\T #c#g4#e BILLION DOLL>S4 ,?IS 9SUFFICI5CY1 RELATIVE TO ! EXI/+ CAPITAL MASS & COMP>$ ) CAPITAL EXPORTS AT ! TURN ( ! C5TURY1 ALL[$ = ONLY AN 9SUFFICI5T RISE ( 9T]NATIONAL TRADE4 ,! REC5T SPURT 9 ,AM]ICAN CAPITAL EXPORTS1 ?\< = ! TIME BE+ DECREAS+ PAYM5TS DIFFICULTIES1 MAY1 AT A LAT] TIME1 COME TO HAVE ! OPPOSITE EFFECT BY AN \TFL[ ( DIVID5DS1 9T]E/1 & PR(ITS :I* WILL EXCE$ NEW 9VE/M5TS4 ,! SETT+-UP ( ,AM]ICAN MANUFACTUR+ 5T]PRISE 9 ,EUROPE & ! P>TICIPATION ( ,AM]ICAN CAPITAL 9 ,EUROPEAN 9DU/RIES COMP5SATE TO SOME EXT5T = ! EXPORT DECREASE ( ,AM]ICAN COMMODITIES DUE TO ! ACTUAL1 OR POT5TIAL1 DOLL> %ORTAGE4 ,YET P>T ( ! PR(ITS MADE 9 ?IS MANN] MU/ F9D !IR WAY BACK TO ! ,AM]ICAN BASE4 ,IF NOT1 IT CEASES BE+ ,AM]ICAN CAPITAL & FUNCTIONS AS ,EUROPEAN CAPITAL 9 COMPETITION ) ,AM]ICA & ! RE/ ( ! WORLD4 ,TO BE SURE1 A GREAT FL[ ( CAPITAL FROM 0/RONG]0 TO 0WEAK]0 NATIONS MAY IMPROVE ! BALANCE-(-PAYM5TS POSITIONS ( ! LATT]1 = ! FACT ?AT =EIGN CAPITAL IS 5T]+ A DOME/IC ECONOMY IS ITSELF A SIGN ?AT ! LATT] IS EXP&+ & IS 9 ! PROCESS ( 5D+1 OR N>R[+1 ITS BALANCE-(-PAYM5TS DIFFICULTIES4 ,IT IS ONLY UND] CONDITIONS ( AN EXP&+ ECONOMY ?AT CAPITAL MOVEM5TS AFFECT ! PAYM5TS SUFFICI5TLY SO ?AT ! 0FREE0 MOVEM5T ( CAPITAL APPE>S AS AN 0EQUILIBRIUM0 =CE4 ,?IS DOES NOT DO AWAY )1 BUT M]ELY COV]S UP1 ! CONC5TRATION & MONOPOLIZATION PROCESS ( CAPITAL ACCUMULATION BY :I* A WID5+ DISEQUILIBRIUM APPE>S AT TIMES AS AN APP>5T EQUILIBRIUM4 ,! C\RSE ( ACTUAL DEVELOPM5T CANNOT BE D]IV$ FROM FLUCTUAT+ BALANCE-(-PAYM5TS SITUATIONS1 :I* MAY BE 9 0EQUILIBRIUM0 M]ELY AS A PRECONDITION = A /ILL GREAT] DISP>ITY BETWE5 CR$ITOR & DEBTOR NATIONS AFT] A GIV5 PHASE ( EXPANSION COMES TO A HALT4 ,AL?\< IT MAY BE 0IMMAT]IAL0 = A NATIONAL ECONOMY :E!R ITS CAPITAL 9VE/M5T IS ( DOME/IC OR =EIGN ORIG9 7PROVID$ ! RATE ( CAPITAL =MATION IS NOT AFFECT$ BY ! TRANSF] ( PR(ITS TO ! =EIGN 9VE/ORS7 IT IS NOT IMMAT]IAL = ! DOME/IC CAPITALI/S TO F9D !IR [N TRADITIONAL SPH]E ( CAPITAL EXPANSION 9VAD$ BY =EIGN CAPITAL4 ,:ILE ! 9C5TIVES = CAPITAL EXPORTS >E GETT+ SMALL]1 ! READ9ESS TO 9VITE CAPITAL FROM ABROAD IS ALSO DIM9I%+--AT ANY RATE 9 ! ,EUROPEAN C\NTRIES4 ,BO? ! ,E,E,C & ! ,E,F,T,A T5D T[>D A CONT95TAL ALLOCATION ( CAPITAL RES\RCES :I* 9VOLVES ! CURTAILM5T ( ,AM]ICAN 9VE/M5TS 9 ,EUROPEAN 9DU/RY4 ,9 ,5GL&1 = EXAMPLE1 :]E ,AM]ICAN CONTROLL$ CAPITAL APPROA*ES ?REE BILLION DOLL>S1 OPPOSITION AGA9/ ! POT5TIAL =EIGN DOM9ATION ( SOME ,BRITI% 9DU/RIES BECOMES 9CREAS+LY MORE VOCAL4 ,:]EAS ! 0UNIMP$$0 FL[ ( CAPITAL WILL ACCOMPLI% LITTLE T[>D A MORE BALANC$ 9T]NATIONAL ECONOMY1 ! 0UNIMP$$0 FL[ ( LABOR IS ALTOGE!R AN IMPOSSIBILITY4 ,IT CANNOT BE REALIZ$ --EXCEPT ON A SMALL & 9SIGNIFICANT SCALE--EV5 9 SUPRANATIONAL COMB9ATIONS SU* AS ! ,E,E,C & ,E,F,T,A4 ,! RELATIVELY FREE MOVEM5T 7TO V>Y+ DEGREES7 ( COMMODITIES1 CAPITAL1 & LABOR 9 ! ,UNIT$ ,/ATES IS AN ADVANTAGE NOT TO BE DUPLICAT$ BY EI!R ONE ( ! ,EUROPEAN TRADE BLOCS1 OR BY A ,PAN-,EUROPEAN M>KET4 ,H]E ! FREE FL[ ( LABOR IS AS IMPOSSIBLE AS IS ! FREE FL[ ( LABOR BETWE5 ,EUROPE & ,AM]ICA4 ,S9CE CAPITAL MOVEM5TS >E GOV]N$ BY PR(ITABILITY & SECURITY1 ! MO/ PR(ITABLE ECONOMIES ATTRACT MO/ ( ! CAPITAL & ?US BECOME /ILL MORE PR(ITABLE4 ,?IS DIM9I%ES ! COMPETITIVE ABILITY ( LESS PRODUCTIVE1 UND]-CAPITALIZ$ NATIONS & ?IS1 9 TURN1 DECREASES ! G5]AL FL[ ( CAPITAL ?R\< ITS CONC5TRATION 9 0OV]CAPITALIZ$0 NATIONS4 ,! MOVEM5T ( CAPITAL FROM LESS PR(ITABLE & LESS SECURE TO MORE PR(ITABLE & MORE SECURE NATIONS CANNOT HAVE AN 0EQUILIBRAT+0 QUALITY1 AS IT IS B\ND TO 9CREASE ! GAP BETWE5 ! 0/RONG0 & ! 0WEAK0 C\NTRIES4 ,IT IS ! PR(ITABILITY PR9CIPLE :I* 9DUCES1 BUT ALSO PREV5TS1 L>GE-SCALE CAPITAL EXPORTS1 & :I* 9DUCES1 OR H9D]S1 ! 0FLILY TRANSC5DS ! POSSIBILITIES ( ! PRIVATE 5T]PRISE ECONOMY1 & EV5 M9IMUM REQUIREM5TS 9 ?IS DIRECTION--TO ASSURE A NECESS>Y DEGREE ( SOCIAL /ABILITY & 9T]NATIONAL 9T]C\RSE--DEP5D UPON ! 9T]V5TIONS ( GOV]NM5TS :I* 0SOCIALIZE0 ! 0LOSSES0 ?US 5G5D]$4 ,EUROPEAN PROPON5TS ( A 0FUZ$0 ,WE/]N ECONOMY 5VISION ITS 0ACTUALIZATION0 NOT SO MU* AS FRE$OM ( TRADE & ! FREE MOVEM5T ( CAPITAL & LABOR AS ! AVOIDANCE ( ECONOMIC W>F>E 9 :I* !Y C\LD NOT W94 ,!Y ACCEPT ! ,E,E,C & ,E,F,T,A AS >RANGEM5TS ?AT NE$ NOT NECESS>ILY LEAD TO CONFLICTS )91 & BETWE51 !MSELVES1 OR ) ! RE/ ( ! WORLD IF ONLY !RE IS RECOGNITION (1 & FREE CONS5T TO1 A V>IETY ( PREF]5TIAL TREATM5TS = NATIONS )9 ! TRAD+ BLOCS1 BETWE5 !SE BLOCS & ! L>GE-SCALE ECONOMIES4 ,?IS W\LD 9VOLVE ! CONT9U$ SUPPORT ( ! ,EUROPEAN BY ! ,AM]ICAN ECONOMY NOT1 TO BE SURE1 BY WAY ( ADDITIONAL AID1 BUT BY MAK+ ALL[ANCES = ! DISADVANTAGES ( ! ,EUROPEAN ECONOMIES VIS-A-VIS ! ,UNIT$ ,/ATES4 ,DESPITE ALL ! IDEOLOGICAL FREE-TRADE V]BIAGE ACCOMPANY+ POLICY /ATEM5TS1 ! 9T]NATIONAL1 LIKE ! NATIONAL ECONOMY1 IS NO LONG] ?\Y1 9 DEFIANCE ( ! SO-CALL$ 0M>KET LAWS0--9 ORD] TO SECURE AS MU* AS POSSIBLE ( ! M>KET ECONOMY4 ,( C\RSE1 ?IS K9D ( P>TIAL 0PLANN+0 ( ! 9T]NATIONAL ECONOMY TO SECURE A NECESS>Y 0BALANCE0 IMPLIES GA9S & LOSSES & ! ACCEPTANCE ( LOSSES BY ! /RONG] CAPITALI/ P[]S4 ,I,V ,?IS DESIR$ 0REV]SAL0 ( ! TR5D ( 9T]NATIONAL CAPITAL ACCUMULATION1 OR ! UNDO+ ( HI/ORY1 IS AS UNREALI/IC AS ! WIDESPREAD NO/ALGIA = A 0FREE0 WORLD M>KET & IS M]ELY A /ATE ( M9D CAM\FLAG+ ! ACTUAL IMPASSE 9 :I* 9T]NATIONAL CAPITALISM F9DS ITSELF4 ,NOT)/&+ ALL DECL>ATIONS1 & EV5 ACTUAL POLICIES1 TO ! CONTR>Y1 IT CANNOT BE ,AM]ICA'S OBJECTIVE 7OR ?AT ( ANY O!R NATION7 TO BR+ AB\T A WELL-FUNCTION+ WORLD ECONOMY AT ! EXP5SE ( H] [N DOM9AT+ POSITION4 ,TO COME TO ! AID ( O!R NATIONS1 EV5 IF DICTAT$ BY NATIONAL 9T]E/1 CANNOT BE A LIMITLESS PROCESS1 NOR CAN IT BE DONE 9 P]PETUITY )\T ASSI/+ 9 ! DE/RUCTION ( ! SOCIAL FABRIC ( ! FREE 5T]PRISE SY/EM4 ,SU* A C\RSE F9DS ITS 0JU/IFICATION0 9 0EM]G5CIES0 BUT REMA9S =EIGN TO ! CAPITALI/ MODE ( PRODUCTION4 ,AS ! 0EM]G5CY0 PASSES1 COMPETITION SUPPLANTS 0PHILAN?ROPY40 ,IT IS !N ?AT 0PHILAN?ROPY0 IS REVEAL$ AS BUT ONE ( ! NECESS>Y P>TS ( COMPETITION4 ,!RE IS1 AT ANY RATE1 NO 9DICATION ( AN ,AM]ICAN READ9ESS TO SACRIFICE H] DOM9ANT POSITION 9 WORLD ECONOMY TO A MORE BALANC$ 9T]NATIONAL ECONOMY4 ,AFT] ALL1 ,AM]ICA'S PREPOND]ANCE IS ! RESULT NOT ONLY ( H] [N PRODUCTIVE EF=TS1 BUT IS DUE ALSO TO ! OCCURR5CE ( TWO ,WORLD ,W>S :I* LEFT ! ,EUROPEAN ECONOMIES F> BEH9D ! ,AM]ICAN4 ,AT LEA/ 9 P>T1 ! ,UNIT$ ,/ATES [ES H] EXCEPTIONAL GR[? TO EXCEPTIONAL CIRCUM/ANCES & SOME ( ! 0BLESS+S0 ( !SE CIRCUM/ANCES WILL DISAPPE> AS ! RECOV]Y ( ! ,EUROPEAN ECONOMIES N>R[S ! GAP BETWE5 ,EUROPEAN & ,AM]ICAN PRODUCTION4 ,! GAP WILL BE EV5 N>R[] %\LD ! ,EUROPEAN ECONOMIES F9D WAYS & MEANS = A MORE RAPID CAPITAL EXPANSION ?AN IS N[ POSSIBLE 9 ! ,UNIT$ ,/ATES4 ,RELATIVE TO ! GR[? ( ,EUROPEAN PRODUCTION1 ,AM]ICAN M>KETS = !SE PRODUCTS WILL BECOME SMALL] & ?US ,AM]ICAN EXPORTS TO ,EUROPE WILL ALSO DECL9E4 ,BECAUSE ,EUROPEAN EXPANSION IS BY %E] NECESSITY GE>$ TO ! WORLD M>KET1 ITS CONT9U$ PR(ITABLE EXPANSION DEP5DS ON A SUCCESSFUL P5ETRATION ( EXTRA-,AM]ICAN M>KETS 9 COMPETITION ) ! ,UNIT$ ,/ATES4 ,& NOT ONLY 9 COMPETITION ) ,AM]ICA BUT ALSO ) ! ,EA/]N ECONOMIC BLOC1 :I* LIMITS /ILL FUR!R ! EXT]NAL EXPANSION ( BO? ! ,EUROPEAN NATIONS & ! ,UNIT$ ,/ATES4 ,) ! GR[+ COMPETITIVE /R5G? ( ! ,EA/]N ECONOMIC BLOC & 9CREAS+ ,EUROPEAN COMPETITION1 ,AM]ICA'S EXCEPTIONAL POSITION DUR+ ! FIR/ HALF ( ! TW5TIE? C5TURY IS COM+ TO A CLOSE4 ,FUR!R 9T]NATIONAL CAPITAL EXPANSION PO9TS !N TO AN 9T5SIFI$ COMPETITION 9 A %R9K+ WORLD M>KET1 & ! >IS+ TRADE BLOCS MAY ALSO BE CONSID]$ 9/RUM5TALITIES TO C\NT]ACT ! MONOPOLI/IC PRESSURES ( ! L>GE-SCALE ECONOMIES4 ,SO F> AS ,AM]ICA IS CONC]N$1 ,EUROPE'S RECOV]Y1 H[EV] NECESS>Y1 CAN ONLY BE A DUBI\S AFFAIR4 ,AM]ICA'S ACQUIESC5CE 9 DISCRIM9ATION AGA9/ H]SELF IS WE>+ ?9N] UND] A GR[+ DEM& ?AT ! ,EUROPEAN NATIONS1 N[ ?AT !Y HAVE RECOV]$1 MU/ %>E 9 GREAT] MEASURE ! PR(ITLESS BURD5 ( ,WE/]N 0DEF5SE40 ,CONC]N OV] A GR[+ ,AM]ICAN PAYM5TS DEFICIT DESPITE A CONT9U$ FAVORABLE BALANCE ( TRADE %IFTS ! PREVI\S EMPHASIS UPON =EIGN ECONOMIC POLICIES TO NATIONAL ECONOMIC 9T]E/S1 9 FULL RECOGNITION ( ! R5EW$ =CE ( ,EUROPEAN COMPETITION AID$1 ON ! ONE H&1 BY ! CUTT+ D[N ( 9TRA-,EUROPEAN COMPETITION &1 ON ! O!R1 BY ! ?REAT5+ POSSIBILITY ( HI<] COMMON T>IFF WALLS AGA9/ ,AM]ICAN COMPETITION4 ,AL?\<1 9 !ORY1 COMPETITIVE 9T]NATIONAL CAPITAL ACCUMULATION 9 ! TRADITIONAL S5SE C\LD CONT9UE IF ECONOMIC ACTIVITIES W]E LEFT TO ! FREE PLAY ( ! WORLD M>KET1 ! RECOGNIZABLE RESULTS ( SU* A FREE PLAY PRECLUDE ! PLAY ITSELF4 ,EV5 9 A WORLD )\T T>IFFS1 QUOTAS & O!R RE/RICTIONS1 TRADE W\LD /ILL FACE ! DISCRIM9ATORY SITUATION ( UNEQUAL LEVELS ( PRODUCTIVITY1 DIFF]5T DEGREES ( 9DU/RIAL DEVELOPM5T1 & UNEQUAL DI/RIBUTION ( NATURAL RES\RCES1 :I* CANNOT BE COP$ ) BY ! SOLE 9CID5T ( L[] WAGE-LEVELS 9 ! COMPETITIVE BUT LESS =TUNATE NATIONS4 ,OV] A P]IOD ( TIME1 0IF !RE >E DIV]G5T RATES ( GR[? ( PRODUCTIVITY1 ! TRADE WILL BE PROGRESSIVELY LESS FAVORABLE TO ! C\NTRIES LESS RAPIDLY ADVANC+ 9 PRODUCTIVITY40.<#g.> ,UND] CONDITIONS ( FREE TRADE1 ,AM]ICAN COMPETITION C\LD RU9 ,EUROPEAN PRODUC]S & DISEMPLOY ,EUROPEAN LABOR1 NOT TO SPEAK ( EV5 LESS DEVELOP$ NON-,EUROPEAN >EAS4 ,! LESS PRODUCTIVE NATIONS WILL TRY TO BLOCK ! =EIGN COMPETITOR BY ALL AVAILABLE MEANS1 9CLUD+ ! UTILIZATION ( ! NATIONAL /ATE & ! =MATION ( TRADE BLOCS 9 !IR DEF5SE4 ,& ECONOMIC LEGISLATION WILL COME TO !IR AID ! MORE READILY AS CAPITAL PRODUCTION NECESSITATES A DEF9ITE DEGREE ( SOCIAL /ABILITY4 ,/RUCTURAL *ANGES 9 WORLD ECONOMY BR\KET-DET]M9$ CAPITAL =MATION4 ,YET ALL ATTEMPTS AT 09TEGRATION0 >E /ILL BAS$ ON ?IS ASSUM$ POSSIBILITY & >E SIMULTANE\SLY CONTRADICT$ BY PRACTICES :I* DIVIDE ! WORLD M>KET 9TO 0SPH]ES ( 9T]E/S0 & 0AUT>*IC0 ZONES :I* PREV5T ! REVIVAL ( FREE COMPETITION ON A FREE WORLD M>KET4 ,NOR CAN ?IS BE O!RWISE1 = IF !RE CANNOT BE A 0FREE0 CAPITAL ACCUMULATION 7DUE TO ITS CONC5TRATION EFFECT7 NEI!R CAN !RE BE A 0FREE0 M>KET NOR M>KET 9TEGRATION ( ! 9T]NATIONAL ECONOMY4 ,& JU/ AS A CONTROLL$ 9T]NATIONAL CAPITAL EXPANSION IS LIKEWISE AN IMPOSSIBILITY1 SO IS A CONTROLL$ 9T]NATIONAL M>KET4 ,A MIXTURE ( FREE & CONTROLL$ CAPITAL EXPANSION1 ( FREE & CONTROLL$ M>KET RELATIONS EXCLUDES BO? AN 0AUTOMATIC0 & A 0CONTROLL$0 9TEGRATION ( WORLD ECONOMY4 ,IT DOES NOT EXCLUDE ECONOMIC MANIPULATION1 TO BE SURE1 BUT ?IS MANIPULATION1 :I* C\LD ONLY S]VE P>TICUL>I/IC 9T]E/S1 CANNOT S]VE ! NE$S ( WORLD ECONOMY4 .<#a.>4 ,WILL>D ,L4 ,?ORP1 ,TRADE1 ,AID OR ,:AT8 7,AMH]/1 #a#i#e#d71 P4 #e#c4 .<#b.>4 ,! ,ECONOMI/1 ,LONDON1 ,JANU>Y #c1 #a#i#e#d4 .<#c.>4 ,RAYMOND ,V]NON1 ,TRADE ,POLICY 9 ,CRISIS 7,PR9CETON1 #a#i#e#h71 P4 #b#a4 .<#d.>4 ,LOC4 CIT4 .<#e.>4 ,WILL>D ,L4 ,?ORP1 OP4 CIT411 P4 #a#h#c4 .<#f.>4 ,LOC4 CIT4 .<#g.>4 ,JOHN ,H4 ,WILLIAMS1 ,ECONOMIC ,/ABILITY 9 A ,*ANG+ ,WORLD 7,NEW ,YORK1 #a#i#e#c71 P4 #c#h4 ,FROM 3 ,M>XI/S4ORG4 ,*RONOLOGY 3 ,M>* #b1 #bba 3 ,CAPITAL ,=MATION & ,=EIGN ,TRADE -- ,ADD$4 ,JANU>Y #h1 #bbb 3 ,CAPITAL ,=MATION & ,=EIGN ,TRADE -- ,UPDAT$4 FILE G5]AT$ FROM 3 HTTP3_/_/REVOLTLIB4COM_/