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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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The middle class is not placated by feel-good talk that the stock market has climbed to a record high, or that unemployment is at a record low, or that the gross domestic product is growing. Unemployment statistics don't count the guys who lost $50,000 jobs in manufacturing and are now working $25,000 jobs in retail, but job-growth figures happily do count the wives who have been involuntarily forced into the labor force just to keep groceries on the table. The middle class is not placated by glib slogans that free trade is good for the economy and that protectionism is a nasty word. Common sense tells them that there is no such thing as a free lunch and, yes indeed, they do expect friends in government and industry to protect U.S. jobs against unfair competition from foreigners who work for 30 cents an hour.

Americans relish competition, as our national fixation on sports contests proves every day. But the globalists have destroyed a level playing field and, in addition, have subordinated us to an umpire (aka the World Trade Organization) that is biased against us.

Globalist policies have encouraged U.S. employers to use near-slave labor in Asia, whose products are then guaranteed duty-free or low-tariff re-entry to the United States. Those products are then sold here for prices that are cheap by U.S. standards but are marked up as much as 80 percent.

Globalist policies also allow discrimination against U.S. manufacturers by the Value Added Tax racket, whereby foreign governments subsidize their products both coming and going. For example, German automobiles cost 16 percent less in the United States than the same car sold in Germany, and U.S. automobiles cost 16 percent more in Germany than the same car bought in the United States. House Majority Leader Nancy Pelosi, D-Calif., plans to shift the dialogue on Capitol Hill to worker's pay, college tuition, health care costs and other issues that touch ordinary families. Her solutions are all bad economics and very expensive, but they will enable her to pose as a friend of the middle class.

All six U.S. senators thought to be planning a run for the Democratic nomination for president voted against the Central American Free Trade Agreement. The issue would be dramatically joined if the Democratic nominee were opposed, for example, by Sen. John McCain, R-Ariz., who supported NAFTA, CAFTA, WTO and permanent normal trading relations for China.

Will Republicans continue to follow George W. Bush in his post-election travels to solicit even more Asian products made by cheap labor and subsidized by their governments? Or will Republicans get smart on the jobs issue and re-establish their friendship with the Reagan Democrats?

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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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