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Monday, February 25, 2008
Donald Lambro :: Townhall.com Columnist
Economy Needs Any 'Export' In A Storm
by Donald Lambro
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But turning away from trade agreements, now and in the future, will not strengthen our economy, it only weaken it. There is nothing wrong with the economy in Wisconsin or the rest of the country that cannot be helped by opening overseas markets to our products and services. U.S. export sales have been running at about $1.3 trillion a year and that figure is going to climb as a result of an expanding world economy and a weaker dollar that is making our products more competitive.

I do not think the trend in manufacturing downsizing is going to change in the years to come because technology will allows us to make more things faster, cheaper and with fewer workers. But if Clinton and Obama want to expand the

U.S. manufacturing base and help American workers at the same time, expanding overseas trading markets for made-in-the-USA stuff should be at the top of their list.

Number two on that list should be cutting the corporate income tax from 35 percent to 20 percent or lower. We have the second highest tax rate on corporations in the industrialized world, after Japan. A lower rate would make us more competitive with the rest of the world, which is where our economic future lies.

"The claim that automation and international trade will create a large class of permanently unemployed American workers remains as fuzzy as ever," writes economist Stephen Rose, who is at work on a book titled "Mythonomics," in the Washington Post. One of those myths is that because of trade with China and India, "the United States has become a nation of low-paid service workers destined for a high rate of unemployment."

But Rose notes that Commerce Department data shows "that even at the state level, including in Midwestern 'Rust Belt' states, employment is up at least 14 percent since 1993, the year the North American Free Trade Agreement was passed."

We need to open up more markets to more trade, not less, as the Malthusians would have us do. For openers, let's drop the economic sanctions with Cuba and sell them whatever they want.

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About The Author

Donald Lambro is chief political correspondent for The Washington Times.

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Statistics vs. what we have seen
When I was young; everything we wore, every vehicle we drove in, every tool we used every appliance we owned, everything we ate (except for coffee and bananas), was made or grown in the United States. We produced more than we consumed and as a result had a strong economy.
Now it is very hard to find products made in the United States.

The Steel Industry-Gone
The Textile Industry-Gone
Home Electronics-Gone
Furniture Manufacturing-Gone
Appliance Manufacturing-Gone
The Auto Industry only assembles parts mostly made in Mexico and Canada

The American People have high standards that they require of all domestic producers in the form of labor and environmental standards that are not required of our foreign competitors.

Ever increasing minimum wage laws, Social Security, Medicare, Unemployment Insurance, Workers Compensation Insurance, OSHA, EPA, ADA requirements, taxes, fees, bureaucratic red tape, and many other government regulations significantly add to the cost of production. These costs make it impossible for American business to compete with foreign producers who have little to none of these liabilities. Add to that a slow and expensive justice system that encourages tort lawyer extortion and business has an impossible situation.

The result is outsourcing.

Missing the ball
Trade is not harming the economy in the US; artificial restrictions on development are holding us back. If Congress passed the ANWAR bill tomorrow, oil would be under $100 and probably head south of $90 soon. If we loosened regulations on refining, coal and nuclear energy those investment dollars held overseas would flock back. If we stopped proppping up inefficient technologies, ethonol for example, with tax subsidies and paying farm corporations huge subsidies to guarantee their prices we would see food prices be affordable for Americans, and be more competitive for export.

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