Palley: The Flaws in Rubinomics PDF Print E-mail
Written by Stumo   
Wednesday, 10 October 2007

The Flaws in Rubinomics

Copyright Thomas I. Palley (www.thomaspalley.com)

With Senator Hillary Clinton firmly cemented as the front-runner for the Democratic Party’s nomination, Rubinomics—named after former Treasury Secretary Robert Rubin, who shaped economic policy under President Clinton—has re-emerged as a critical issue. This is because Senator Clinton has firmly embraced it. Rubinomics rests on faulty economics and embodies bad politics. Progressive Democrats and the nation need to understand this. Here’s an explanation. (read more)

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Very. Serious. People. want Trade Agreements PDF Print E-mail
Written by Stumo   
Wednesday, 10 October 2007

This really is a day when the Very. Serious. People are putting all their forces into pushing more stupid trade deals.  They draft 1,000 page documents, and sell them to us saying "trade is good."  If they want tariff cuts, then why are the trade agreements more than a page long?  What does the rest of the deal say?

The Washington Post Editorial Board is championing Bill Clinton today... for his pushing NAFTA.  Its the big bad unions that are the problem - ya'know only unions oppose trade deals - and Bill defied them.  But Edwards is pandering to them.  Bad Edwards.

Fourteen years after NAFTA was approved, the case for free trade remains the same. Though it imposes costly dislocations on workers in less-competitive industries, it benefits the country as a whole by increasing efficiency. Over time, the result is more jobs and lower prices.

More jobs?  Are they serious?  Our trade policy is causing job loss. They've been drinking the Wal-Mart kool aid.

 
Condoleeza on trade PDF Print E-mail
Written by Stumo   
Wednesday, 10 October 2007

This is a day of quotes.  Condoleeza Rice, Secretary of State, is getting into the trade agreement hawking game.  I didn't know her portfolio at the State Department included trade.

"There is a sense that America feels fearful of its ability to compete, and I think that's linked to a whole host of issues about change," Rice said. "That then does create an impulse to protect, and we know from any number of historical experiences that that impulse to protect always leads to bad outcomes." 

No worries about currency manipulation, foreign taxes and subsidies that cause anywhere from a 17% to 57% combined trade distortion impact. Never mind that we spend $2B more per day on imports than we export.  Never mind that China, our biggest geopolitical rival is our biggest creditor.

We apparently are "fearful" of "our ability to compete."  We fear "change."  And the urge to "protect" leads to "bad outcomes." 

I don't recall having those fears.  But what can I say... Rice has apparently diagnosed something in my psyche that I missed.

 
McCain on trade PDF Print E-mail
Written by Stumo   
Wednesday, 10 October 2007

McCain gave a speech at the Marriott in down Detroit before last night's debate.  He did address the question of trade and the economy there... just a bit.  

“Globalization is here, globalization is an opportunity, but globalization will not automatically benefit every American,” Mr. McCain said.

Translated.  Stay the course.

 
Duncan Hunter on trade from May 2007 PDF Print E-mail
Written by Stumo   
Wednesday, 10 October 2007

Duncan Hunter said this in the May 3, 2007 Republican presidential debate:

Moderator: Congressman Hunter?

Hunter: You know, we won World War II, World War I and the Cold War with a major industrial base. We're losing our industrial base through bad trade policy right now. China is cheating on trade.

I would enforce trade laws. That's something that the president is not doing.

No other candidate mentioned trade that night.

 

 
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