An introduction to the revolutionary new, quick-to-grasp 100 page book
Why This Book Must Be Read
In today’s instant and inter-linked age of the internet, protectionist politicians disingenuously still insist on applying the thinking and measurement of trade balances developed 500 years ago in Italy by Prof. Pacioli (1445-1517), a friend of Leonardo da Vinci’s!
This software laid the intellectual foundation of mercantilism, which ruled from overtly 1500 to about 1750. However, even now – over 500 years later - Mercantilism’s software is firmly embedded in most politicians’ thinking on trade, trade flows and thus, trade policy. None other than Dr Alan Greenspan observes in his 2007 memoirs that modern tabulations are still loosely rooted in the thinking of the Mercantilists of the early 18th century, their aim being: “…to achieve a surplus in their balance of payments that brought gold, then the measure of wealth of a nation, into the country.1
How Protectionist Politicians Threaten Their Own Multinational Corporations’ Overseas Operations
Mercantilism is an iron cage enclosing protectionism. Politicians using this outdated and therefore dangerous approach disingenuously ignore the critical role played by multinational corporations (MNCs) in today’s globalization. This is toxic.
I expose the political motives behind this arrogance of ignorance:
- on the “top line”, protectionist politicians garner votes cheaply by blaming the foreigner for “unfair” imports;
- however, in the foggy “middle”, protectionist politicians harness this insidious blame game in order to deflect from their very own policy shortcomings – ones that have led to crippling tax regimes and terrible education – the real reasons for sluggish job-creation in the developed world , and
- The “bottom line” is that these “15th century” protectionist politicians increasingly are antagonizing the politician-bosses of those countries hosting MNCs - particularly in the one remaining area for solid profits growth, emerging markets. Expect their politician-bosses to retaliate and make the life difficult for MNCs operating there. Already we are seeing examples of how, for instance, protectionist politicians in America are antagonizing China’s politician-bosses so much that they, in turn, are making life increasingly difficult for U.S. MNCs operating there.
