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  • Stimulus Through Trade

    Former-Rep. James Bacchus (D-FL) writes in today’s Wall Street Journal:

    President-elect Barack Obama is rightly focused on preparing a stimulus plan to “jolt” the American economy toward recovery. Yet missing thus far is any mention of international trade as part of his plan.

    Democratic presidents — Roosevelt, Truman, Kennedy, Carter and Clinton — have long been advocates for trade. What about Mr. Obama?

    Will Democrats approve the pending free-trade agreement with Panama? American workers and businesses could clearly benefit from their fair share of the contracts for the pending $5 billion expansion of the Panama Canal.

    Will Democrats approve the pending free-trade agreement with Colombia? American workers and businesses would certainly profit from the proposed tariff cuts in that agreement that would, according to the White House, result in $1 billion annually in new exports. Ninety percent of imported Colombian goods already enter the U.S. duty-free.

    Will Democrats make the successful conclusion of the World Trade Organization’s Doha Development Round of global trade negotiations an immediate and high priority? Offers already on the table in the Doha Round would, over 10 years, create $120 billion annually in additional market access for developed and developing countries alike.

    This would all boost the American economy without adding a dime to the federal budget deficit.

    But above all, Democrats must have the courage in this time of crisis to resist protectionist calls for building new barriers that would supposedly shelter us from the global economy. The last time Congress tried the protectionist approach during a time of economic crisis was in 1930. The Smoot-Hawley tariffs deepened and prolonged the Great Depression, and contributed to the outbreak of World War II.

    Posted in International [slideshow_deploy]

    3 Responses to Stimulus Through Trade

    1. Evan from Anchorag says:

      Our motto should be "do onto others as they do onto us" And I don't mean make it easier for American companies to locate overseas and then ship that product back to the US.

    2. Matthew A. Woods, OH says:

      Free trade with nations that subsidize their native industries destroys our own.

      With exception of embargo, setting U.S. import tariffs on all goods equal to the source country's import tariff plus cumulative government subsidy simultaneous rewards trading partners, punishes economic rogues, eliminates foreign economic meddling that so often leads to geopolitical discord, and permits the gainful exploitation of native comparative advantage.

      A single "tariff/subsidy matching" law would solve 95% of the trade squabbles in congress. Protectionism doesn't work!

    3. Mike, Hickory, NC says:

      While reading the above article and seeing the things and examples in it, one other thing should practically "jump right out" at all or at least most of us.

      It's all comes down to Leftist government elitist politicians and bureaucrats, such as in the case of a megalomaniacally imperious Leftist government elitist Obama, a matching Leftist government elitist-controlled Congress, like-minded bureaucrats, and also their willing accomplices in the media, etc.

      So, while there may be some good facts and ideas in the above article, we must know better than to "hold our breaths" waiting for them to be implemented, certainly not without their being manipulated and molested, so we may as well brace ourselves for the worst for the next 2 to 4 years before we can really do anything about it at the ballot box. Then, assuming, of course, we all (including organized labor) still have voting by secret ballot fully intact and not changed, supplemented or supplanted by anything else, and things like ACORN are over-powered, after their already having been indicted for "voter fraud", and even after their getting rewarded and paid in various ways for their illicit misbehavior, including the so-called "2009 Bail-out (pork) bills", for thus helping get their Obama and his allies "elected" by the minority of all (Legal) residents and (legally) registered voters.

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