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Palley: The Flaws in Rubinomics |
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Written by Stumo
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Wednesday, 10 October 2007 |
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The Flaws in Rubinomics
Copyright Thomas I. Palley (www.thomaspalley.com)
With Senator Hillary Clinton firmly cemented as the front-runner
for the Democratic Partys nomination, Rubinomicsnamed after former
Treasury Secretary Robert Rubin, who shaped economic policy under
President Clintonhas 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. Heres an explanation. (read more)
***
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Read more...
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Very. Serious. People. want Trade Agreements |
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Written by Stumo
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Wednesday, 10 October 2007 |
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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.
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Written by Stumo
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Wednesday, 10 October 2007 |
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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.
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Written by Stumo
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Wednesday, 10 October 2007 |
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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.
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Duncan Hunter on trade from May 2007 |
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Written by Stumo
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Wednesday, 10 October 2007 |
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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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