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Monday, November 27, 2006
Phyllis Schlafly :: Townhall.com Columnist
Middle class will look for a friend in either party
by Phyllis Schlafly
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What was the biggest suprise of Election Day?



The best post-mortem on the 2006 election came from that perennial politician, Sen. Edward M. Kennedy, D-Mass. He said, "People want to know who's on their side. Whether it's health care or wages or retirement issues, they want to have someone on their side."

The biggest electoral bloc of the "they" who are seeking friends is the middle class, which includes people variously labeled blue-collar workers, skilled workers or Reagan Democrats. They are the swing voters, often called the moveables.

President Ronald Reagan's victories absolutely depended on their support. But Presidents Bush I and II kicked them away from the Republican Party, particularly on the issue of jobs.

Did the 2006 election teach Republicans that it is smart to be friends of the middle class? Have Republicans realized that jobs were second only to the unpopular war as the issue of 2006, and will surely be the No. 1 issue in 2008? George W. Bush carried Ohio in 2004 because the marriage amendment brought out the values voters. But Democrats can play that game, too: In 2006, the Ohio referendum on increasing the minimum wage raised the jobs issue, passed by 57 percent, and helped to bury Republican candidates.

Ohio has lost its manufacturing base. Some of the good jobs went to plants that were outsourced overseas and some disappeared in the tsunami of cheap Chinese goods as Wal-Mart replaced small businesses and left behind towns with empty streets and boarded-up windows.

Incumbent Republican Sen. Mike DeWine was badly defeated by Rep. Sherrod Brown, D-Ohio, who had led the congressional fight against CAFTA and wrote a book called "The Myths of Free Trade" (New Press, $16). Brown's TV ads showing him standing in front of a "plant closed" sign were powerful.

Almost every Republican member of Congress who bit the dust in the 2006 election had been an enthusiastic booster of the globalists' agenda: North American Free Trade Agreement, Central American Free Trade Agreement, World Trade Organization, Fast Track, permanent normal trading relations and free trade agreements with countries most Americans never heard of. Republicans were badly on the defensive in the face of Democrat ads touting the issue of jobs. The United States has lost more than 3 million manufacturing jobs since George W. Bush became president in 2000. The U.S. trade deficit hit a record high of $717 billion last year, and is expected to be even higher this year. Continued...

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About The Author

Phyllis Schlafly is a national leader of the pro-family movement, a nationally syndicated columnist and author of Feminist Fantasies.
 
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How Bad Trade Deals hurt Americans
http://www.controlcongress.com

This is from “Skeptical Economist”.

So far, our global economic failures show up mainly as discontented workers in areas hard hit by import competition. However, the real problems (and the worker problems are quite real) are considerably worse

The United States as a nation is far from self-sufficient or anything close. Back in Kennedy era, imports and exports were in the range of 4 to 5% of GDP. The US economy was closes to autarkic. These days comparable numbers are imports are 16.22% of GDP and exports are 10.46% of GDP. Per se, there is nothing wrong with trade growing as a percent of GDP. However, the brutal reality is that our nation can no longer pay its bills. Imports of goods are almost double exports of goods. We enjoy a small (and shrinking) surplus on services and are now in deficit for payments (profits received from overseas US investments versus profit earned by foreign investment in the US).

If you could only pay half of your bills, would you think you were doing well? Would that be OK? Might some question of economic failure arise? Wouldn’t virtually every American see it that way? Yet, when it comes to our country, it is somehow OK. Of course, it is not.

If you could only pay half of your bills, your debts would be soaring. Guess what? So are the debts of the United States. Of course, the national debt is growing and more than 50% owned by foreigners. However, the debts of ordinary Americans are rising as well and a growing percentage are owned by foreigners as well.

The trade debate is usually depicted in terms of “cramped, narrow minded, locally oriented protectionists” versus “visionary, open minded, free trading globalists”. This caricature is largely correct. However, that doesn’t mean the protectionists are wrong. With America going broke, they are at least on the right side of the issue..

Thomas Friedman demonstrated again the cluelessness of our elites on trade today. His piece “China: Scapegoat or Sputnik” repeated the usual mantra about education solving our problems. His actual words were “health care, portability of pensions, entitlements, and lifelong learning”. Nice ideas, but will they really help middle aged workers without jobs? No, of course not, but the deeper problem is they won’t fix our trade problems either. We will simply go broke faster. What words were missing? How about “overvalued currency”, “RMB versus the dollar”, “China’s lack of currency flexibility”, etc. All notably missing.


Sitting it out...
Mostly, The Republican Congress and White House betrayed their supporters, the ones that vote, anyway. They got what they deserved.
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