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Friday, July 24, 2009
Michael Gerson :: Townhall.com Columnist
Taxing the Poor
by Michael Gerson
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WASHINGTON -- There was a time when international trade was the subject of poetry. In "Locksley Hall," Alfred Tennyson "Saw the heavens filled with commerce, argosies of magic sails / Pilots of the purple twilight, dropping down with costly bales."

Recently, however, trade has inspired more resentment than verse. During a recession, the threat of foreign competition can seem more real and present than the opportunities of foreign markets. According to the World Trade Organization, 30 countries have imposed trade-restricting measures since the onset of the economic crisis. China included a "Buy Chinese" provision in its own stimulus package. The U.S. Congress has variously threatened to impose tariffs as an instrument of climate policy, limited bailed-out banks in hiring foreign workers and encouraged states receiving stimulus funds to "Buy American."

All this is politically understandable -- and economically insane. With the world experiencing the largest drop in trade volumes since World War II, actions that restrict global trade will delay global recovery. Protectionism is economically self-destructive: Won't American companies eventually want to compete for contracts in India and China? Protectionism is diplomatically self-defeating: Do we really want to pick trade fights with our closest friends, such as Canada and Mexico? Protectionism is outdated: The distinction between foreign and domestic companies is blurred when many use transnational supply chains. And protectionism is unjust: The world's poorest countries are often the most dependent on exports.

Fortunately, after a fling with union-pleasing protectionism during his campaign, President Barack Obama has largely adopted the pro-trade consensus of his predecessors. He has signaled support for bilateral trade agreements with South Korea and Panama, and openness to a pact with Colombia. At the recent G-8 meeting in Italy, he joined other leaders in calling for the conclusion of a global trade deal in 2010 to comprehensively reduce tariffs and quotas.

Unfortunately, grand goals are the cynical staple of summits. Completing the global trade negotiations begun in Doha in 2001 will require developing countries such as China and India to open their manufacturing and service sectors, and the United States and Europe to dramatically reduce agricultural subsidies and barriers. And it will require Obama not merely to acknowledge the need for trade, but to press the arguments for trade on Capitol Hill and within his party.

All of this is unlikely (though not impossible). But even in the absence of a global trade agreement, America has a responsibility to fix its own tariff system -- a system that often punishes the poor.

Current law is supposed to allow developing nations to export duty-free into U.S. markets. In practice, however, restrictions and limits are placed on imported clothing, textiles, footwear and agricultural products -- which are exactly the kind of labor-intensive products that many poor nations produce best. So American tariffs effectively single out the poorest nations for the highest international taxes. On average, these countries pay more than three times the tariff rates of our richest trading partners. Continued...

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About The Author
Michael Gerson writes a twice-weekly column for The Post on issues that include politics, global health, development, religion and foreign policy. Michael Gerson is the author of the book "Heroic Conservatism" and a contributor to Newsweek magazine.
 
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Medicare Recipients Lose $500 Billion


MEDICARE RECIPIENTS TO LOSE $ 500,000,000,000 IN OBAMA'S HEALTH PLAN


Obama plans to cut Medicare funding by 500 Billion Dollars to subsidize his Health Insurance Plan.

Medicare recipients will be faced with rationing and will move from the front of the line to the back.

That 500 Billion Dollars will be used to add over 11 Million Illegal Aliens to the health care rolls.

America's "Greatest Generation" is now Medicare Recipients and Obama wants to take 500 Billion Dollars from them and give

it to illegal immigrants.

Most Medicare recipients are unaware of this.


HYPOCRITES & OBAMA'S HEALTH INSURANCE PLAN

AARP is backstabbing those they're suppose to protect by not informing their members of the 500 Billion Dollar Medicare cut.

In fact the liberal AARP is backing Obama's plan to the detriment of their members.

Sen. Bill Nelson of Florida is also going to backstab all those Medicare recipients in Florida that he represents.

Sen. Bill Nelson will vote for the Obama plan & cut in Medicare funds.

For those of you who are members of AARP or residents of Florida, tell AARP or Sen. Nelson that they are Backstabbing Hypocrites.

Also that you are going to resign from AARP or not vote for Sen. Nelson.



GREAT COLUMN!!!!!
This has gotta be one of the best columns ever on Townhall.com. Years ago OXFAM put out a report that detailed how much western trade policies adversely affected poor countries. That was OXFAM, a liberal organization.

This is an issue that both liberals and conservatives agree on, and Gerson makes a great presentation.
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