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Free Trade Fact of the Day

Posted By Conn Carroll On July 29, 2008 @ 10:30 am In International | Comments Disabled

Responding to Barack Obama’s promise to unilaterally renegotiate NAFTA, President George H.W. Bush’s Council of Economic Advisers chairman Michael Boskin writes in the Wall Street Journal [1]:

[S]ince Nafta was passed (relative to the comparable period before passage), U.S. manufacturing output grew more rapidly and reached an all-time high last year; the average unemployment rate declined as employment grew 24%; real hourly compensation in the business sector grew twice as fast as before; agricultural exports destined for Canada and Mexico have grown substantially and trade among the three nations has tripled; Mexican wages have risen each year since the peso crisis of 1994; and the two binational Nafta environmental institutions have provided nearly $1 billion for 135 environmental infrastructure projects along the U.S.-Mexico border.

History teaches us that high taxes and protectionism are not conducive to a thriving economy, the extreme case being the higher taxes and tariffs that deepened the Great Depression. While such a policy mix would be a real change, as philosophers remind us, change is not always progress.


Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2008/07/29/free-trade-fact-of-the-day-98/

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[1] Wall Street Journal: http://online.wsj.com/article/SB121728762442091427.html?mod=opinion_main_commentaries

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