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  • Guest Blogger: Rep. Schock (R-IL):Free Trade Will Boost Jobs

    Today, President Obama is hosting a jobs summit at the White House with union bosses and corporate CEOs to discuss ways to accelerate job creation in the US. Noticeably absent are any representatives from the Chamber of Commerce or the National Federation of Independent Businesses, who represent most of the employers throughout the country.

    While not receiving invitations from the President might not stop everyone from attending events at the White House, the absence of the Chamber and NFIB reveal this summit for what it really is: just another PR stunt. If the President was serious about creating jobs, he’d immediately submit the three pending free trade agreements with Colombia, Panama and South Korea.

    For months, House Republicans have been asking “Where are the jobs?” as the Democrats ignore the rising unemployment rate and instead pass a cap and tax bill that, according to independent estimates, will cost us between 2.3 and 2.7 million jobs each year for twenty years and a health care bill that President Obama’s own economic advisor estimated would cost as many as 5.5 million jobs.

    This is the height of foolishness. As of October 30th, the Administration says $214.5 billion of the “so-called” stimulus has been spent thus far and this spending has “saved or created 640,000 jobs.” In other words, according to the numbers provided by the White House, these jobs have come at a cost to the American taxpayer over $335,000 PER JOB.

    There is a better way to create jobs and there is a way we can create these jobs at no cost to the American taxpayer. By passing these free trade agreements, which won’t require a tax increase, add to our national deficit or hurt our small businesses, we can create good paying American jobs in sectors of our economy such as manufacturing and agriculture.

    Surprisingly, even President Obama agrees with me. He recently stated that increasing US exports by just one percent would create over 250,000 American jobs. According to the International Trade Commission, passage of the Colombia, Panama and South Korea free trade agreements would increase our exports by more than one percent. The inaction on these trade agreements is preventing the creation of a quarter million American jobs.

    While some may prefer summits and speeches to action, I believe we should immediately implement these free trade agreements to ensure the creation of hundreds of thousands of jobs. Free trade equals free jobs.

    The views expressed by guest bloggers on the Foundry do not necessarily reflect the views of the Heritage Foundation.

    Posted in Economics [slideshow_deploy]

    18 Responses to Guest Blogger: Rep. Schock (R-IL):Free Trade Will Boost Jobs

    1. Ozzy6900, CT says:

      Rep. Schock is absolutley correct. Free trade and competition are the only way that jobs will be created and business flourish. In order for all this to occur, the Government must create incentives for Business to operate. Taxing them to death does nothing but kill business and thereby jobs!

    2. Jerry, Peoria, IL says:

      The problem with Aaron is he won't be old enough to run for President until 2016! He's wiser than our current "President".

    3. Truthful James, Illi says:

      I admire Rep. Schock. He is my type of Conservative.. But Free Trade must be examined closely. Insofar as it subsidizes profits for foreign producers but does not raise the wages paid to their workers it is not Free Trade. in that it does not create additional consumption dollars for our products in foreign economies. If it did, then Free Trade remains an apt goal.

      Now that does not mean that domestic wages are properly priced either, We have, through our production combining capital and labor moved what had been in 1946 a domestic proletariat through to the middle class and killed the opportunity for class warfare which the socialists (and communists) so devoutly wanted.

      This hugely successful model of which most unions are aware falls apart as owners ship capital to fund foreign production..

      We have changed from a country which relied on real assets to produce goods profitably to one which sees fortunes made from the inevention and sale of financial assets. That benefits many, but consumers forming a larger and larger part of GDP are induced to use financial liabilities to purchase depreciating real assets, wherever they are produced. This is, frankly, unsustainable. Induced by the unrealized value of their homestead — their primary financial asset to take on installment debt, consumers rode the tiger up and now down.

      Rep. Schock is from a District which is a primary producer of heavy wheeled and tracked vehicles. They sell worldwide. Tariff trade barriers hurt.

      If free trade agreements could be formed so that the balance between countres in close to equal, it would be fortuitous. This is the true free trade in real assets which we should be seeking. Our economy needs the multiplier effect of Value Created By Manufacture. As we have discovered the newfangled notion of a multiplier created by "Value Created By Ideas has not the same multiplier effect and Ideas can be replicated quickly by our trading partners.

    4. Ernesto,Chappaquiddi says:

      Clearly, from Obama's most recent speech ha has been emulating and copying previous Democrats either subconsciously or consciously as evidenced by the distinct similarities to Lyndon Banes Johnson's 1959 Viet Nam speech. Most obviously, the line about "strength of America is her people more so than her military might", mimicked the thoughts of LBJ.

      Pumping money blindly into the economy via "stimulus" was tried by Franklin Delano Roosevelt to no avail, never admittedly a failure by FDR but one of his administration did "fess up" that stimulus did not work. Only the coming of World War II decreased unemployment by sending many thousands of unemployed men away to war and increased manufacturing in the USA toward the last of FDR's elongated rein.

      Likewise, some of Jimmy Carter's techniques most notably, "Do not use heat/cool in one's home to save energy.

      Another Democrat Paul (Tax-on-gas) Tsongas favored taxing energy in the form of gasoline to cut energy usage.

      When coupled with obvious socialism, these are hardly "change" but rather reprised old notions that failed.

    5. Katie, Washington DC says:

      jobs summit, cap and trade, and the healthcare bill – the height of foolishness indeed!

      great article.

    6. Linda Carlsbad, CA says:

      This is a joke. It is a PR move. This President and his administration have done everything to kill jobs in our country.

      They want everyone on Welfare. All their social programs have wasted all our borrowed money. We know what he is doing. We the American people, hate having a President who is anti-American,job killing!

      Congress stop spending money you don't have. We the American people have had it!

    7. Ryan The Devil Dog, says:

      Pure and simple folks; Capitalism is the engine that wouldn't quit, however the American public has successfully began to destroy it. LEt the Capitalist economic Model of our history be it's own saving grace. Everytime I hear someone say that "capitalism got us here", I feel the Laser beams come out of my eyes. that is pure ignorance.

      Every situation that is discussed as a primer for the "economic recession" is choked by Government intervention and regulation. Let the FREE market be just what it is supposed to be people, FREE.

      Loose the ill placed regulation and the Little Engine will come speeding back down the track right into your neighbohood, asking "what took so long?"

    8. BigJoe, TN says:

      Fair trade, YES. Free trade, NO.

    9. Jerry from Chicago says:

      Is that why NAFTA worked out so well for us? As I recall, it helped out our neighbors in Mexico quite a bit. I suppose all those wealthy Mexicans that took on all those jobs we outsourced will now be buying a lot of new cars made in the U.S., right?

    10. Dave, FL says:

      Free Trade is what has killed the jobs in America, it will not create any. We have had a trade deficit with most all countries for over thirty years -completely destroying the engine of our economy.

      People who preach Free Trade are either completely stupid, corrupt for themselves or traitors. Just look at the trade data, each agreement causes a bigger deficit with more loss of industry, jobs and technology. Things are so bad that right now our economy may not recover.

      What we need is an immediate tariff on all imports with those funds used exclusively toward re-establishing our manufacturing base as this is the only way we can get the economy going again.

      And to those of you who are drinking that ‘Vulture Capitalist’ Kool-Aid, need to stop; it is destroying America.

    11. Pingback: Where’s Schock? Guestblogging about free trade « Peoria Pundit

    12. ebk, Pa. says:

      Until the pay scales of those in Colombia, Panama and Korea are equal to those in the "USA" there can be no Free and Equal Trade. Case in point, look at the wages paid to the workers in China. How can anyone fairly compete with them. The only thing this will do is line the pockets of those in Washington.

    13. Tom /Georgia says:

      I agree with BigJoe in TN. Fair trade, not free trade.

      I am just not buying that no one in Washington realizes how many countries there are around the world who use a multi-level Value Added Tax system as a defacto tariff that is levied on imports from other countries.

      With our woefully decrepit and criminally dishonest income tax and payroll tax systems, we tax the bejesus out of our own exports (As much as or greater than 50%) while levying minimal taxes on imports.

      Ensuring that U. S. consumers have low cost foreign produced personal and household goods available to them in our retail stores while "borrowing" the money back as a way of providing consumers additional purchasing power to use to purchase the foreign-made goods is a game that has lasted far longer than I thought it ever could.

      When the inevitable end of the game does come, there will be hell-to-pay in the good old U. S. of A.

      It will likely be necessary to "fix" Congress before we can have a Congress that will be willing and able to fix the actual problems that are afflicting our country: Trade, healthcare, the nation's economy, the nation's financial system, the nation's government, etc., etc., etc., you name it. If the dolts who are currently in office were willing and able to be meaningful to the nation, they would be instead of spending all of their time and effort engaged in their silly damned intramural fantasy league political games of which party is up and which party is down on the Goofyville political seesaw.

      JMHO

    14. Tim Az says:

      Tell us how you create a manufacturing econonmy in the US that is profitable for the company owner? When The government, The Unions, and the Welfare Class all work in unison to bleed the profit margines of all businesses within the US to a level that kills any incentive to create manufacturing or expand manufacturing within the US. Tell me what is produced by the Govt., the Unions, or the Welfare class that contributes to a better America? None of these entities can create positive inspiration for an ordinary inidvidual to become an extraordinary individual.

      How's that hope and change working out for you?

    15. J.A. (U.S.) says:

      Most modern trade agreements don't work because they are "managed trade", and not "free trade". Look at the old agreements between the U.S. and China.

      Some how America needs to stop making trade agreements that benefit other countries instead America. Why grow other countries' economies off of the economy of the U.S.? It makes no sense.

      Lets fix and learn from the trade agreements we have before we make new ones.
      http://www.ustr.gov/about-us/press-office/press-r

    16. J.A. (U.S.) says:

      China won't get remove VAT (Value Added Tax) on many of the U.S.'s key exports, but did remove the tax on U.S. exports that increases China's gold supply.

      November 2009:

      "China scraps tax on gold contained in copper imports…China has scrapped the 17% VAT on gold contained in imports of crude (blister) copper"
      http://news.mining.com/2009/11/13/china-scraps-ta

    17. Hilary, San Francisc says:

      Free trade is a scourge. Our obsessive-compulsive commitment to it is hurting us because it's making Americans compete for jobs against third world laborers. That's not a competition I want to have. We should have smart-trade, trade that is in our self-interest. We should not be ideologically committed to any particular policy. I'm sorry but a business that exports jobs away from the US shouldn't be able to turn around and sell its goods on our market as if nothing had changed. When businesses take jobs overseas, they hurt this country and they should not be entitled to the same favorable treatment as a US business that keeps its operations here. Americans should not be made to compete for low-wage jobs like animals. Corporations are 100% self-interested. That's what makes them so dangerous. If you don't want them taking jobs overseas, tariff their goods when they bring them to the US market. I'm sorry, but no multi-national corporation has the "right" to access our market. That is a privilege that should be contingent on positive corporate behavior.

    18. acommoner says:

      US American Jobs will not return to the USA until our Government adopts
      a policy of Fair Free Trade. That all products and/or services offered for sale in the USA
      market must be produced and/or provided in accordance with all USA; quality, safety,
      health, environment and wage standards. Go to: http://www.manifestry.info > Fair Free Trade

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