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  • Free Trade Fact of the Day

    A core belief of the hard core left is that free trade has killed American manufacturing and that increased protectionism is key to bringing it back. Harold Meyerson forwards this world view in today’s Washington Post:

    The loss of several million manufacturing jobs during the Bush presidency coincides with the first economic recovery in American history in which the average family’s income actually declined.

    When you compare Obama’s economic positions to those of John McCain, this should be no contest. McCain has supported every offshoring, free-trade accord, past or pending, that has decimated the Midwest; Obama has expressed skepticism that such accords serve the interest of ordinary Americans.

    In reality, productivity gains are the true cause of less manufacturing employment. U.S. manufacturing production is actually up. Despite the painful recession in manufacturing from 2000 to 2003, real output of U.S. factories has still increased by 50% since 1994. Heritage’s Ambassador Terry Miller reports:

    The growth in manufacturing productivity is a worldwide phenomenon. According to Ward, productivity gains in China between 1995 and 2002 would have eliminated the need for about 37 million Chinese manufacturing jobs. Actual manufacturing job losses in both China and the United States were far less than these numbers, because while productivity gains were reducing demand for manufacturing workers, gains in GDP were increasing it. However, the total number of manufacturing jobs went down in both countries.

    Posted in International [slideshow_deploy]

    3 Responses to Free Trade Fact of the Day

    1. Pingback: Free Trade Fact of the Day

    2. Bob, Wisconsin says:

      Every year I see plants in Wisconsin closing and moving to Mexico and buildings sitting empty. The fact is, manufacturing is moving out of the U.S. No need to make pretend it isn't happening. It is just easier to make a higher profit there. Ironically, I see more Mexican immigrants working in manufacturing here as well. Not sure if that is good or bad, but lets not obscure the truth.

    3. Nathan, Montana says:

      Good comment Bob, Wisconsin.

      Let's not pretend that this isn't happening.

      The opening statement of this article is grossly incaccurate. The "hard core left" and their "core belief" that free trade is not good is nearly an acronymn in the Northwestern part of the US.

      The most conservative people you can imagine–ranchers, loggers, timber merchants–that live and work up here are facing the end of their existence mainly due to Canadian imports if lesser quality & cheap beef and lumber. This is only 2 of the industries I see being annialated daily.

      I will end this here but I have supported the Heritage Foundation and agree on 99% of the issues they deal with–this is the 1% and I am going to contact them today concerning their stance.

      God help Americans to wake up and see their goods may NEED to cost a bit more–that is how you sustain premium quality and safety regarding our food supply.

      Thanks for reading.

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