4/1/2008
Another politician with his finger in the wind
An article by prolific libertarian economist Don Boudreaux (on staff at George Mason University) was featured in FoxPolitics News yesterday that hailed the benefits of free trade. By now there’s quite an insightful comment thread as well. Boudreaux rails against a Forbes.com essay that illustrates well the ‘anti-foreign bias’ that is a “major impediment to economic enlightenment.”
America's trade deficit represents capital flowing into the U.S…. Nearly all the … trade deficit represents positive investments in America - investments that not only signal continued investor confidence in the U.S. economy but, more importantly, investments that finance R&D, product development, worker training, new firms, factory modernization, and other activities that promote economic growth. Does [the Forbes essay writer, Peter] Morici really think that such investments harm Americans?
Great economics lesson – that my congressman has (and yes, many Americans have) yet to learn.
The trade deficit is a very tough issue to explain – but is perfect fodder for campaigning political-speak. In the small “flat” world that global trade has become, indeed foreign investment is absolutely a positive. It’s about time America had the use of outside capital – as opposed to the other way around.
Contrast that with what is an opportunistic effort on the part of Representative Kagen – holding his finger in the wind (the union wind – a very major portion of Kagen’s contributor base) and finding one more way to complain about the economy. It really bugs me.
The March 29 press release harbors protectionist scare tactics and is bigoted as well. I don’t buy it and neither should you.
(APPLETON, WI) Congressman Steve Kagen, M.D. today called upon President Bush to form a bipartisan U.S. Competition Commission to evaluate the implications of foreign ownership of our assets and industries.
In a letter to the President, Kagen said, “In my view, foreign states - and distant corporations - should not be allowed to control our economy, and they must not be permitted to determine or control the quality of the air we breathe, the water we drink, the food we grow, the size and strength of our military, or the health of our environment and our people.”
Congressman Kagen has consistently advocated for a competition commission to examine current trade and competition rules.
A Competition Commission? You have got to be kidding me.
COMMENTS
Competition Commission.
Not kidding at all. The Friedman flat earthers with fat portfolios of stocks paying dividends on the slave labor in the Far East love this free trade scams.
Back home we have Corporate Socialism in the form of protectionism for big banks that 'can't fail' and Pponzi operations at the likes of Bear Stearns (with more to follow.)
Who is protecting whom is the big question.
Lon Ponschock (Tue Apr 01 06:02:21 2008)
I have noticed that people who are actually involved with the process - who know a little about what is going on and don't think the Fox Valley is the whole world (hi Lon!) tend to be in favor of free trade.
This isn't to say that there are not problems with the concept. Job loss hurts, relocation sucks and change is a way of life.
The upside is that everyone gets rich; it's not a win=loose game.
Brian (Tue Apr 01 09:54:23 2008)
Lon,
"paying dividends on the slave labor in the Far East":
Who is being enslaved int eh Far East?
"free trade scams."
Can you elaborate on how free trade is a scam?
"Corporate Socialism in the form of protectionism for big banks"
Examples, please.
"that 'can't fail' and Pponzi operations at the likes of Bear Stearns "
Please explain how Bear Stearns was a Ponzi scheme.
"Who is protecting whom is the big question."
The big question is 'does Lon know what he's talking about or is he merely recycling what he's read on the Daily Kos'?
Brian (Tue Apr 01 09:57:14 2008)
Lon,
Ever been out of the country? Do you know what poverty is? Do you realize without those jobs many of those people would scrounging through garbage dumps for their daily food?
I don't suppose you do.
Here are the choices. Give them jobs that pay competitive local wages. Or we can funnel charity and line the coffers of UN favored corruptocrats. Or the last choice is to just let them eat garbage. I prefer choice #1.
Me too. JE
Marcus Auerlius (Tue Apr 01 10:55:31 2008)
Not to pile it on, but I myself did not know what real poverty was until I'd left the country.
* In the Philippines it was cheaper to hire a hundred men for a week and supply them with chisels than to fly in a jackhammer and it's operator. I will allow this was over twenty years ago and the area in question from off the beaten track - things have changed then, for the better.
* In Bangladesh an Army MP and I fell into conversation. He asked what my salary was - I was then a Lance Corporal, E3. Once we translated US dollars into the local currency .. he refused to believe me. He didn't call me a liar outright but he thought I was pulling his leg. I showed him my LES and then he believed.
Then he told me what he made. A fifteen-year veteran of their army ... earned just a little bit less than what I'd paid for jungle boots in the PX.
* Bangladesh - you needed a ditch dug in the capitol, you hired some guys with shovels and put them to work. This wasn't a case of 'out in the boonies' it was 'there are no power tools, period.' In the entire country.
Brian (Tue Apr 01 12:24:46 2008)
Every positive remark about the international flow of capital could be said to be true about centuries of economic colonization. Anyone here actually on board for a shift from 'empire' to 'colony'? Anyone at all?
Congressman Kagan is not calling for sealed borders and a self-imposed economic embargo. He's saying, hey, let's take a hard look at this and see what's working and what isn't.
Sheesh. Don't get trapped in a dualistic mindset and persuade yourselves, for the sake of petty politicking, that this is either black or white.
JRoush (Tue Apr 01 12:58:57 2008)
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