taboo subject protectionism
by Manfred Julius Müller

The media see themselves as guardians of public opinion. The word "protectionism" can only be used in a negative sense, if at all. There is no objective discussion on a certain level of protection against dumping imports. Those who nevertheless dare to pronounce the word protectionism uninhibitedly will be immediately stamped as eternal strangers.

The completely exaggerated alarmism is intended to rule out the possibility of adequate self-protection for our economy from the outset. It is pretended that protectionism means total isolation and complete isolation of a country - a return to the Middle Ages.

It is kept secret that there is no doubt that it can and could be done differently. No one accused the Federal Republic of Germany of protectionism at the time of its economic miracle, yet it was still a sovereign state with its own currency and appropriate customs frontiers.
At that time, it made little sense to outsource production abroad because imports became more expensive when imported. Customs duties/import taxes not only compensated for the global pay gap, they also prevented companies from blackmailing the state.

Today, companies have to be wooed and encouraged (high subsidies and tax breaks), otherwise there is a risk of production being relocated abroad. The friends of total free trade and globalisation should know that such blackmailed homage to corporations is also pure protectionism. They are by no means more decent than honest customs duties.
Concealed protectionism (subsidies) is, however, much more ineffective - it distorts the market economy and creates paradisiacal conditions for the corporations, namely boundless power and excessive political influence.


Protectionism - the most hypocritical chapter in the world!
Hardly in any other field are there as many tricks, mendaciousness and hypocrisy as in the taboo subject of protectionism. This is not surprising, as no other regulatory instrument has such a profound influence on the rise or fall of nations.

Some countries protect their economies through a totally undervalued currency (currency dumping), others through nationalist cronyism, legal subtleties, single trade unions, lack of labour protection measures, eco- and social dumping, export subsidies, investment subsidies, wage subsidies, dumping taxes, hardly persecuted product piracy, rarely prosecuted patent infringements, low cost of living.

Cheating and cheating and deceiving are going on everywhere and fair competition is being undermined; hardly any outside expert can see through all this. The honest and blue-eyed are definitely the stupid ones.We live in a world of secret protectionism in which everything is allowed to strengthen the position of capital. Only open and honest customs protectionism is vehemently condemned and rejected - because it is the absolute weak point of capital (more on this).


Germany also pursues protectionism!
Honestly, it should be admitted that even Germany cannot do without indirect protectionism. Here, too, there is an abundance of subsidies to alleviate the discrepancy with the more favourable local conditions of other countries.

But subsidy protectionism is much more expensive than a simple, time-tested customs protectionism - and it is far less effective. Above all, however, subsidy protectionism ensures that the balance of power is reversed: It strengthens capital and weakens the labour factor. But that is exactly what the powerful people of this world are trying to achieve.


"But we are export world champion!"
The argument is really ancient in Asbach, but it still draws the following conclusion: Even today, it is pointed out like a prayer wheel that Germany, as an exporting nation, benefits particularly from global free trade and can only be happy about the rapid reduction of customs duties. What I think of that, you can read


Supplement 2012:
In the meantime, Germany is no longer an export world champion, but has slipped to third place. China has long since assumed command in many respects and is also by far the leader in export.Nevertheless, the export world champion China (you can hear and be amazed) allows itself to impose import duties of 40 % on cars, for example! And does this now lead to countermeasures in the competition? No! It's not even discussed! Because the Western global players with their given governments do not want to turn away from free trade (global dumping competition).

If you want to invest in China, you often have to deal with Chinese partners and agree to a technology transfer, while Chinese companies are in the process of buying up the market leaders in the automotive supply industry abroad.
In the truck sector, cut-throat competition has already begun - the Chinese low-cost suppliers are gaining ever higher market shares. In the passenger car sector, China will presumably also one day launch a major offensive on the western markets.

The solar industry is currently experiencing how such dumping competitions tend to go out. Here, too, Germany was still the market leader a short time ago and within a year, one important company after another slipped into bankruptcy.
Once again, the winners are the Chinese competitors, who with their purchased know-how and cheap wages are bringing their competitors to their knees. China supports its solar industry through state subsidies - while Germany does not support production (which is obviously too protectionist for it) but promotes electricity feed-in. In this way, the Chinese manufacturers will also benefit from the unselfish (naïve) German subsidy policy.


Excuse me!
There is no equality of opportunity - even when it comes to forming opinions. While the capital (corporations, speculators, lobbyists, media, governments) can afford the best translators, I have to settle for a simple language program for financial reasons. I hope, however, that the text is nevertheless reasonably understandable and that no major mistakes have occurred. Thank you for your understanding.

Manfred Julius Müller, 24939 Flensburg (Flensburg has approx. 90,000 inhabitants and lies on the German-Danish border)


Background & Analysis:
A list of the currently available translations into English can be found here.
Unpopular truths from Germany. The capitalist world by no means functions in the way that the human being is brainwashed. The hottest political taboo topics. The tough fight against false doctrines and prejudices.



© Manfred Julius Müller, Flensburg, Urtext 2004, Nachtrag 2012

Current books by Manfred Julius Müller (unfortunately currently only available in German):
Manfred Julius Müller has analyzed global economic processes for more than 30 years. He is the author of various books on the topics of globalization, capitalism and politics. Some texts by Manfred Julius Müller also found their way into textbooks or are used for teacher training.
The analyzes and texts by Manfred Julius Müller are non-partisan and independent! They are not, as is often the case, sponsored by state institutions, global players, corporations, associations, political parties, trade unions, the EU or capital lobby!