Posts tagged with: International Trade

clinton-trumpImagine if Donald Trump made a campaign promise that he would lower the pay of every American, but would ensure that the poorest 10 percent have their pay lowered the most. Would you vote for him then? Or imagine if Hillary Clinton said she would increase inflation substantially to make the economy more “fair” for everyone. Would she win your support?

Neither candidate has made such a claim—at least not directly. The American people would immediate reject such harmful economic policies, and politicians know they’d be rejected for making such inane promises.

In reality, though, both Clinton and Trump (as well as the candidates for the Green Party, Constitution Party, and the American Solidarity Part) have promised to implement policies that would have the same effect as increasing inflation or reducing pay, for all have proposed a means of lowering purchasing power.
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free tradeWhile the Democratic and Republican parties disagree on just about every other issue, there is one area where they seem to have common ground.  That is the issue of trade and, unfortunately, neither of the two major political party’s platform takes a liberal position on the issue.  Director of Research at the Acton Institute, Samuel Gregg, recently highlighted in an article for The Stream how the two parties have taken positions against free trade and how ultimately this will hurt the American economy.  Gregg starts his article by explaining how the alternative to free trade is protectionism which will lead directly to cronyism:

Protectionism also encourages unhealthy relationships between politicians and businesses. The latter have an incentive to lobby for favors rather than improve their performance in the marketplace. And politicians expect something in return for passing legislation that favors particular industries and businesses. In this sense, protectionism feeds a major problem already harming American politics and the economy: crony capitalism.

Gregg goes on to explain both party’s platform on the issue of trade, starting with how the growing skeptic ism of free trade in America has infiltrated the Republican platform.  This is really not surprising when considering how closely Donald Trump’s nationalistic rhetoric aligns with the ideas of protectionism.  Gregg says: (more…)

Today at The Stream I provide some analysis of Donald Trump’s speech earlier this week at the Detroit Economic Club. As I conclude, “The trouble for Trump’s promised future lies in the impossibility of reclaiming a bygone era.”

In Trump’s campaign there is a mix of both nostalgia and optimism, which bookend serious critiques of America’s more recent past and the legacy of his political opponents in particular. This approach is appealing to an important, and often overlooked segment of the American public. These are the new voters who Trump has promised to bring to the GOP, and who have sometimes embraced his campaign with a kind of religious fervor.

But the broader appeal of this vision is dubious. Trump’s larger economic vision certainly does bear some resemblance to Bernie Sanders’ agenda, as they emphasize nationalism, interventionist trade policy, and a revitalization of traditional manufacturing and labor sectors. It remains to be seen how many of Sanders’ supporters will migrate to the similarly nationalist approach of Donald Trump.

The real challenge for Trump is to express this hopeful vision about the future while simultaneously hearkening back to an idyllic past. If Clinton is “the candidate of the past,” it is the recent past, the last few decades of the Obama administration and bad trade deals like NAFTA. Trump, meanwhile, is both the candidate of the future as well as of the more remote, perhaps even mythic past, in which America was first: in jobs, manufacturing, global influence, leadership, and military strength.

As Trump put it in his Detroit speech, “Americanism, not globalism, will be our new credo.” Joseph Sunde pointed out the salient Christian critique of such a credo recently, and I also recommend Abraham Kuyper’s treatise Twofold Fatherland for a proper and penultimate valuation of the nation-state and national identity relative to Christian citizenship in God’s kingdom. Twofold Fatherland is included in the forthcoming On the Church volume of the Abraham Kuyper Collected Works in Public Theology.
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lonely-workerWhen it comes to free trade, critics insist that it hurts the American worker — kicking them while they’re down and slowly eroding the communal fabric of mom-and-pops, longstanding trades, and factory towns. Whether it comes from a politician, labor union, or corporate crony, the messaging is always the same: Ignore the long-term positive effects, and focus on the Capitalist’s conquest of the Other.

Trouble is, the basic logic of such thought leads straight back to the Self.

I recently made this point as it pertains to immigration, arguing that such notions of narrow self-preservation give way to our basest instincts and are bad for society as a whole. But it’s worth considering a bit more broadly, as well. For if the point is to defend the Small and the Local for the sake of The Great and Enduring Bubble of American Industry, at what point is this community of workers too big, too specialized, and too diversified for its own countrymen?

At what point are the Texans getting “unfair” growth compared to the Californians, or the Californians compared to the Oklahomians? If this is all as dim and zero-sum as we’re led to believe, what must we do to prevent our fellow productive citizens from harming their fellow countrymen via innovation and hard work? What bleak, self-centered reality dwells at the end of such logic? (more…)

tppThe controversial Trans-Pacific Partnership (TPP), backed by many Republicans and President Obama, hit a snag Tuesday when key Democrats spoke out against the agreement.

What exactly is the TPP? It is a free trade agreement with 12 nations (including China and Japan) that purports to increase economic growth, jobs and free trade. However, there is much opposition in Congress.

Leading opponents of the measure in the Senate have pushed for additional protections for U.S. workers and address concerns about alleged foreign-currency manipulation by China that makes American products too expensive.

“It’s a betrayal of workers and small business in our communities to pass fast track, to put it on the president’s desk without enforcement  … and without helping workers,” Sen. Sherrod Brown, D-Ohio, told The Washington Post.

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Blog author: ehilton
Monday, May 4, 2015
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global shopping cartAt The Stream, Anne Bradley writes about the freedom that free trade brings. Why does free trade matter?

  • We live in a world of scarcity: we have unlimited wants and limited means (resources) to satisfy those wants.
  • As individuals, we aren’t good at producing everything we need to survive. We are limited in our talents and opportunities.
  • We flourish when we are free to trade the things we are better at producing for the things we are not as good at producing.

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Andy Warhol

Andy Warhol

AEI’s Arthur Brooks offers up an interesting take on solutions to poverty. He thinks the key lies in “boring things,” and his inspiration is artist Andy Warhol.

I often ask people in my business — public policy — where they get their inspiration. Liberals often point to John F. Kennedy. Conservatives usually cite Ronald Reagan. Personally, I prefer the artist Andy Warhol, who famously declared, “I like boring things.” He was referring to art, of course. But the sentiment provides solid public policy guidance as well.

Warhol’s work exalted the everyday “boring” items that display the transcendental beauty of life itself. The canonical example is his famous paintings of Campbell Soup cans. Some people sneered, but those willing to look closely could see what he was doing.

Warhol’s critical insight is usually lost on most of the world.

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