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Here's a Thought President Obama, Try Free Trade for Once

From Anthony Lizan on Wednesday, July 28, 2010 5:41 PM
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With the unemployment rate at 9.5%, it’s safe to say that the economic “stimulus” has failed to create any jobs. In spite of this fact, the President has been on a speaking tour lauding his own economic policies. At a speech last week at the groundbreaking of a new battery manufacturing plant, Obama said, “Now, this is the ninth advanced battery plant to begin construction because of our economic plan.” What the President fails to realize is that the company which owns the site, Compact Power Inc, is a Korean owned business that has prospered and invested in the U.S. despite the President’s policies, not because of them.

As ATR has noted before, Obama and the Democrats have an awful track record when it comes to promoting free trade. From the “Buy America” provision in the stimulus, to the tariff on Chinese tire imports, they have continually made the marketplace inhospitable for foreign businesses.

Promoting free trade would reduce unemployment by providing incentives for rich foreign companies to bring their business over here. As Wall Street Journal notes, “For decades, multinational companies headquartered outside the U.S. have been creating high-paying American jobs…over 5.5 million Americans—4.6% of all private-sector workers—are employed at such companies here.”
Free trade would simultaneously attract new foreign direct investment and lower costs for consumers, resulting in a net wealth increase for mostly everyone.

Yet the Democrats continue to promote protectionist polices that deter foreign companies from doing business in the US; ultimately leading to further job losses. A clear example is their continued attempts to block the Korean, Colombian, and Panamanian Free Trade Agreements.

They also continue to interfere with the free-market, by wrongly targeting efficient foreign companies and investing in inefficient and unproductive ones. Take the recent dustup with Toyota for example. Congress lambasted Toyota for its recall, despite the fact that Honda announced a recall almost the same size only a month prior. All of this helped GM, which the government coincidentally has a large stake in.

Continuing these protectionist policies will only hurt the economy even further. During his presidential campaign, Obama claimed to be a free trader. If President Obama wants employment and his poll numbers to rise, it would be nice if his actions lived up to his rhetoric…for once.
 

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Comments

Am interested in going to Washington, DC on August 28, 2010 to the rally sponsored by Glenn Beck. Is anyone in this area going or is their a group going on a bus????
>> Tom Ortega Wednesday, July 28, 2010 6:15 PM Report Comment

Hey, Mr. Young Republican -- we've tried "free trade", and the result has been millions of lost jobs all around the United States. It has killed the American blue-collar/middle class. The guillotine can't make its comeback fast enough.
>> The Beagle Wednesday, July 28, 2010 11:13 PM Report Comment

@The Beagle: Soooooo you're saying we should become North Korea and not let any foreign products into our great country that's also known as "The Melting Pot"? Also, it's REAL classy to call the author "Mr. Young Republican" when being young has nothing to do with what's written here.
>> Jason Thursday, July 29, 2010 1:42 PM Report Comment

@The Beagle: You seem to have a fundamental misunderstanding of what exactly free trade is. In its simplest form, free trade is merely the free exchange of goods and services between two voluntary parties. Free trade made America the richest and most prosperous nation in history. Unfortunately, Obama wants to implement more tariffs, regulations, and other forms of protectionism that adversely affect business. It's these interventionist policies that have lead to the job losses that you mention, not trade. If you want to learn more, here's a really good video to check out. http://www.youtube.com/watch?v=bfE2HO8p3FE Thanks for reading!
>> Anthony L. Thursday, July 29, 2010 1:46 PM Report Comment

For starters, try reading economist Ian Fletcher's 2010 book:"Free Trade Doesn't Work" Also understand that our nation's founders were proud protectionists: http://www.wfrnlive.com/labor-issues/buy-american ALL of our so-called trading partners have a VAT and we don't! The tariffs were lowered so after 1913 we had income taxes! Which do you prefer?
>> BUY AMERICAN! Thursday, July 29, 2010 3:38 PM Report Comment

Also, we have been in an "under the radar" trade war since after WWII but the 21st century robber barons don't care. All of our banks (yeah, the ones WE the taxpayers bailed out) are on the menu next: "Sumitomo Mitsui is considering investing in and possibly acquiring major North American banks, according to a report Friday" http://www.market watch.com/story/sumitomo-mitsui-looks-to-buy-american-bank-report-2010-07-22 Sumitomo Mitsui is one of the many companies listed in RESPECTED historian Linda Goetz Holme's book "Unjust Enrichment: How Japan's Companies Built Postwar Fortunes Using American POWs" (source: Official Japanese Government list of companies using POW forced labor in WWII)
>> BUY AMERICAN! Thursday, July 29, 2010 3:44 PM Report Comment

When Americans buy cheap goods, regardless of their manufacturing origin, it gives them more money to spend on other goods. When they use this extra money, they end up boosting the American economy with these new additional purchases that otherwise wouldn't have happened without the extra cash. And just because our trading partners have a VAT, doesn't mean we should. We have the strongest GDP in the world, and no VAT.
>> Jason Thursday, July 29, 2010 3:52 PM Report Comment

If, instead, you prefer tariffs, then America will LOSE jobs because Americans will have less money to spend on goods, and all because we paid more for something of the same quality we normally could have gotten somewhere else. Try picking up Henry Hazlitt's "Economics in One Lesson" and read "Chapter XI: Who's "Protected" by Tariffs?".
>> Jason Thursday, July 29, 2010 3:56 PM Report Comment

Sorry, but I'd prefer to heed the protectionist words of the 4 GREAT men on Mt. Rushmore over "Jason" or any contemporary head in the sand and bought by the lobbysist economists of today: http://www.wfrnlive.com/labor-issues/buy-american Free trade is a "theory" People not having jobs to buy those "cheap" goods has proved itself. I prefer not think we are a dumb enough nation to surrender our sovereignty and jobs in the name of "cheap" goods. So does Dr. Pat Chaote and Eamonn Fingleton.
>> BUY AMERICAN! Thursday, July 29, 2010 4:28 PM Report Comment

PS- The time traveler at first glance only THOUGHT the "Eloi" were so smart and evolved (leisure class that delegated their labor) that they did not need to know where their sustenance came from. Alas, the industrialized "Morlocks" knew better! Ha-Ha!
>> BUY AMERICAN! Thursday, July 29, 2010 4:32 PM Report Comment

Every piece of legislation that Obama pushes for, enacts, or just likes is the antithesis of what promotes and encourages free trade. He likes outsourcing, and limiting jobs and export growth opportunities. This is not a diluted conjecture, but an objective fact.
>> REDPOLITIC Thursday, July 29, 2010 4:41 PM Report Comment

@BUYAMERICAN While the Founding Fathers were indeed protectionist, that does not necessarily make that prudent. Economic thought has advanced much in the past two centuries, as has thought on issues of race, gender, class, and industrial economies. While our founders offer profound insight on how to order and check a government, they have no greater access to truth than moderns. The economy has changed profoundly since the Founders; let's recall that whisky was used as currency more frequently than US Government tender in their time. Like it or not, our policies must reflect the reality that free trade offers more opportunity for Americans, producers and workers alike.
>> Stephen G. Thursday, July 29, 2010 5:04 PM Report Comment

Ah yes but Stephen, if you believe that then I assume you are willing to challenge Article 1 Section 8 of the US Constitution regarding "laying duties" as well? We were the most powerful nation following the "old" theory of the founders until we used trade to keep our so-called allies from Communism after WWII. Hmmm... Things have changed since the Consitution was written? Perhaps we should scrap it? We no longer even supply all the components we need for our own guns and ammo for our military. Sounds like an independent super power to me!?
>> BUY AMERICAN Thursday, July 29, 2010 5:16 PM Report Comment

Because of the Founder's insight on governance, I am not willing to throw out any part of the Constitution. However, just because Congress has a power does not mean that it should exercise it. The global economy has changed radically even since the fall of communism, largely due to globalization. The U.S. can profit or miss out on the phenomenal opportunities that globalization provides for growth; free trade is a way to embrace the power of the new economy. Moreover, the era of the superpower has ended. There remains no reason to continue to strive for military supremacy as the communist threat ended with the fall of the Berlin Wall.
>> Stephen G. Thursday, July 29, 2010 5:23 PM Report Comment

Stephes said-"Like it or not, our policies must reflect the reality that free trade offers more opportunity for Americans, producers and workers alike." Perhaps you can convince those on the unemplynent extension of that. While you are at it, tell all those Mexicans that had that "supposed" better life ater NAFTA that have risked their lives to come here just to feed their families washing dishes. Let's just lower Americans standard of licving to 50 cents and hour then we can call it competative free" trade. A "tad" better payscale than "slavery" that was piutlawed her.
>> BUY AMERICAN Thursday, July 29, 2010 5:25 PM Report Comment

Stephen said" -There remains no reason to continue to strive for military supremacy as the communist threat ended with the fall of the Berlin Wall. So it is afe to say we can hold hands hands with the reast of the world and sing Kum-Bay-YA?" Osama would like that! So WHY are we in IRAQ? Hey, North Korea is calling you, they have a nice bridge to sell you. So now we are not only "Eloi" people, we will all rename ourselves "Pollyanna" because the Berlin wall is down and we do not have ANY enemies because of wonderful free trade!!!
>> BUY AMERICAN Thursday, July 29, 2010 5:37 PM Report Comment

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