Where in the blazes does this crap come from? And what are you babbling about Sean Hannity? Sorry kiddo -- Must be a language barrier here or you've been reading Chomsky but not really comprehending it -- one or t'other..
Noted. Fair. I wonder if my point depends on it though. Let's see if you see what I'm trying to say.
I was making a broader point about the effects of trade liberalization and the mobility of capital respective to labor. This country made a transition from protecting & strengthening labor, to protecting, strengthening, subsidizing, and bailing out capital.
Some history.
Strict trade laws, tariffs, tighter currency standards, powerful unions, a fed charged with maintaining full employment, and technological limitations tied American capital very tightly to American labor until the 70s (despite GATT in 1947, which had not truly blossomed until Reagan). After WWII many advanced industrial nations were in a shambles (e.g., Europe, Japan); and China & the far east were still off limits. This historical context - combined with the New Deal spirit of taking care of the middle class worker, which was supported by both major parties - gave Labor tremendous leverage over capital.
Consequently, business was "forced" to share more of its profits with workers. While this resulted in robust consumer demand, staggering economic growth, high employment, and upward mobility (freedom) for middle class workers, business wanted to keep a larger share of the pie. So it quietly started investing in the Republican Party, Think Tanks, & media. . . (and it waited for the right moment to change laws and minds).
Their opportunity came in the 70s with an oil shock and stagflation. Volker transformed the Fed's roll from maintaining "full" employment to busting inflation. It worked! Prices came down. As a side bonus, there was a massive recession which resulted in high unemployment and more docile work force, thus bidding down wages - preparing the stage for union busting and the replacement of solid manufacturing jobs with a sea of low wage, no-benefit temp retail jobs.
So, but here is the point about our 70s malaise: the special interests which put Reagan in office made their case successfully to the American people. They said that economic growth was being stunted by expensive labor, high taxes, useless regulations, and strict trade laws. They asked for cheaper operating conditions, which meant cheaper labor. They said that if capital was given more freedom, a utopia of investment, innovation, solid jobs, and competitive pricing would trickle down.
Who knew they were just going to ship our manufacturing to communist China, and replace high middle class wages with credit cards, crazy mortgages, and "no interest for 18 months" - and call it "Morning in America"
as both the American government and consumer traveled into historic debt (as the sultans of American industry quietly partnered with dictator-lead countries to make bank. And talk radio was paid to call it freedom. Brilliant). Yes, it was/is cheaper for Nike to get their sneaks made for pennies a day (by oppressed freedom hating countries, whose cheap labor made a small group of American owners and shareholders wealthy enough to fund elections and staff government). Ironically, they ship their product
(courtesy of "trade routes" stabilized on the public's (Pentagon) dime) back to shopping malls staffed by the new low-wage no-benefit middle class - who were given credit cards instead of wages/benefits to buy shiny plastic objects made in "evil-doer" countries, as well as monopolized health care rising at 5x the rate of inflation (to pay for innovation [cough] "administrative costs", which innovation seems to have pumped the serfs up with antidepressants to keep them calibrated to their disappearing standard of living).
Milton Friedman's "Capitalism and Freedom" should be re-titled "Capitalism, cheap labor, and the death of the middle class & environment"
So but wait: are you saying that we did not transition form a world of support/protections for labor to a world of subsidies/bailouts/regulatory-capture/global-mobility for the suppliers? The transition from the Keynesian/New Deal model to Reaganomics is not exactly a secret.