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Candidate Barack Obama gave a major address, featuring the economy,
in Flint, Michigan, on Monday, June 17, 2008. Below the fold, I
have first excerpted the trade relevant parts of the talk, and then
reprinted the full speech.
To summarize: On trade, he first said we cannot "stop
trading with other countries...". But then went on to site the
worst foreign trading practices, going beyond labor and environmental
standards, to currency, subsidies, regulatory barriers, and lack of
labor.
Something for everyone. Avoiding the protectionist and free trader labels.
This was the early part of the speech.
There are some who believe that we must try to turn back the clock
on this new world; that the only chance to maintain our living
standards is to build a fortress around America; to stop trading with
other countries, shut down immigration, and rely on old
industries. I disagree. Not only is it impossible to turn
back the tide of globalization, but efforts to do so can make us worse
off.
Later, Obama said this about unfair trade:
But even as we welcome competition, we need to remember that our
economic policies must be supported by strong and smart trade policies.
I have said before, and will say again - I believe in free trade.
It can save money for our consumers, generate business for U.S.
exporters, and expand global wealth. But unlike George Bush and
John McCain, I do not think that any trade agreement is a good trade
agreement. I don't think an agreement that allows South Korea to import
hundreds of thousands of cars into the U.S., but continues to restrict
U.S. car exports into South Korea to a few thousand, is a smart
deal. I don't think that trade agreements without labor or
environmental agreements are in our long term interests. …
Allowing subsidized and unfairly traded products to flood our markets
is not free trade and it's not fair to the people of Michigan. We
cannot stand by while countries manipulate currencies to promote
exports, creating huge imbalances in the global economy. We cannot let
foreign regulatory policies exclude American products. We cannot let
enforcement of existing trade agreements take a backseat to the
negotiation of new ones. Put simply, we need tougher negotiators on our
side of the table - to strike bargains that are good not just for Wall
Street, but also for Main Street. And when I am President, that's
what we will do.
The full text is reprinted below:
********
Renewing American Competitiveness
Text of Barack Obama's speech
Flint, Michigan
June 15, 2008
It's great to be at Kettering - a university that is teaching the next
generation of leaders, and training workers to have the skills they need
to advance their own careers and communities.
For months, the state of our economy has dominated the headlines - and
the news hasn't been good. The sub-prime lending debacle has sent the
housing market into a tailspin, and caused a broader contraction in the
credit markets. Over 360,000 jobs have been lost this year, with the
unemployment rate registering the biggest one month jump since February
1986. Incomes have failed to keep pace with the rising costs of health
insurance and college, and record oil and food prices have left families
struggling just to keep up.
Of course, grim economic news is nothing new to Flint. Manufacturing
jobs have been leaving here for decades now. The jobs that have
replaced them pay less, and offer fewer, if any benefits. Hard-working
Americans who could once count on a single-paycheck to support their
families have not only lost jobs, but their health care and their
pensions as well. Worst of all, many have lost confidence in that
fundamental American promise that our children will have a better life
than we do.
So these are challenging times. That's why I spent last week talking
about immediate steps we need to take to provide working Americans with
relief. A broad-based, middle class tax cut, to help offset the rising
cost of gas and food. A foreclosure prevention fund, to help stabilize
the housing market. A health care plan that lowers costs and gives
those without health insurance the same kind of coverage members of
Congress have. A commitment to retirement security that stabilizes
Social Security, and provides workers a means to increase savings. And
a plan to crack down on unfair and sometimes deceptive lending in the
credit card and housing markets, to help families climb out of crippling
debt, and stay out of debt in the first place.
These steps are all paid for, and designed to restore balance and
fairness to the American economy after years of Bush Administration
policies that tilted the playing field in favor of the wealthy and the
well-connected. But the truth is, none of these short-term steps alone
will ensure America's future. Yes, we have to make sure that the
economic pie is sliced more fairly, but we also have to make sure that
the economic pie is growing. Yes, we need to provide immediate help to
families who are struggling in places like Flint, but we also need a
serious plan to create new jobs and industry.
We can't simply return to the strategies of the past. For we are living
through an age of fundamental economic transformation. Technology has
changed the way we live and the way the world does business. The
collapse of the Soviet Union and the advance of capitalism have
vanquished old challenges to America's global leadership, but new
challenges have emerged, from China and India, Eastern Europe and
Brazil. Jobs and industries can move to any country with an internet
connection and willing workers. Michigan's children will grow up facing
competition not just from California or South Carolina, but also from
Beijing and Bangalore.
A few years ago, I saw a picture of this new reality during a visit to
Google's headquarters in California. Toward the end of my tour, I was
brought into a room where a three-dimensional image of the earth rotated
on a large flat-panel monitor. Across this image, there were countless
lights in different colors. A young engineer explained that the lights
represented all of the Internet searches taking place across the world,
and each color represented a different language. The image was
mesmerizing - a picture of a world where old boundaries are
disappearing; a world where communication, connection, and competition
can come from anywhere.
There are some who believe that we must try to turn back the clock on
this new world; that the only chance to maintain our living standards is
to build a fortress around America; to stop trading with other
countries, shut down immigration, and rely on old industries. I
disagree. Not only is it impossible to turn back the tide of
globalization, but efforts to do so can make us worse off.
Rather than fear the future, we must embrace it. I have no doubt that
America can compete - and succeed - in the 21st century. And I know as
well that more than anything else, success will depend not on our
government, but on the dynamism, determination, and innovation of the
American people. Here in Flint, it was the private sector that helped
turn lumber into the wagons that sent this country west; that built the
tanks that faced down fascism; and that turned out the automobiles that
were the cornerstone of America's manufacturing boom.
But at critical moments of transition like this one, success has also
depended on national leadership that moved the country forward with
confidence and a common purpose. That's what our Founding Fathers did
after winning independence, when they tied together the economies of the
thirteen states and created the American market. That's what Lincoln did
in the midst of Civil War, when he pushed for a transcontinental
railroad, incorporated our National Academy of Sciences, passed the
Homestead Act, and created our system of land grant colleges. That's
what FDR did in confronting capitalism's gravest crisis, when he forged
the social safety net, built the Hoover Dam, created the Tennessee
Valley Authority, and invested in an Arsenal of Democracy. And that's
what Kennedy did in the dark days of the Cold War, when he called us to
a new frontier, created the Apollo program, and put us on a pathway to
the moon.
This was leadership that had the strength to turn moments of adversity
into opportunity, the wisdom to see a little further down the road, and
the courage to challenge conventional thinking and worn ideas so that we
could reinvent our economy to seize the future. That's not the kind of
leadership that we have seen out of Washington recently. But that's the
kind of leadership I intend to provide as President of the United
States.
These past eight years will be remembered for misguided policies, missed
opportunities, and a rigid and ideological adherence to discredited
ideas. Almost a decade into this century, we still have no real strategy
to compete in a global economy. Just think of what we could have done.
We could have made a real commitment to a world-class education for our
kids, but instead we passed "No Child Left Behind," a law that - however
well-intended - left the money behind and alienated teachers and
principals instead of inspiring them. We could have done something to
end our addiction to oil, but instead we continued down a path that that
funds both sides of the war on terror, endangers our planet, and has
left Americans struggling with four dollar a gallon gasoline. We could
have invested in innovation and rebuilt our crumbling roads and bridges,
but instead we've spent hundreds of billions of dollars fighting a war
in Iraq that should've never been authorized and never been waged.
Worse yet, the price-tag for these failures is being passed to our
children. The Clinton Administration left behind a surplus, but this
Administration squandered it. We face budget deficits in the hundreds of
billions and our nearly ten trillion dollars in debt. We've borrowed
billions from countries like China to finance needless tax cuts for the
wealthiest Americans and an unnecessary war, and yet Senator McCain is
explicitly running to continue and expand these policies, without a
realistic plan to pay for it.
The pundits talk about two debates - one on national security and one on
the economy - but they miss the point. We didn't win the Cold War just
because of the strength of our military. We also prevailed because of
the vigor of our economy and the endurance of our ideals. In this
century, we won't be secure if we bankroll terrorists and dictators
through our dependence on oil. We won't be safe if we can't count on our
infrastructure. We won't extend the promise of American greatness unless
we invest in our young people and ask them to invest in America.
So there is a clear choice in this election. Instead of reaching for new
horizons, George Bush has put us in a hole, and John McCain's policies
will keep us there. I want to take us in a new and better direction. I
reject the belief that we should either shrink from the challenge of
globalization, or fall back on the same tired and failed approaches of
the last eight years. It's time for new policies that create the jobs
and opportunities of the future- a competitiveness agenda built upon
education and energy, innovation and infrastructure, fair trade and
reform.
This agenda starts with education. Whether you're conservative or
liberal, Republican or Democrat, practically every economist agrees that
in this digital age, a highly-educated and skilled workforce will be the
key not only to individual opportunity, but to the overall success of
our economy as well. We cannot be satisfied until every child in America
- and I mean every child - has the same chances for a good education
that we want for our own children.
And yet, despite this consensus, we continually fail to deliver. A few
years ago, I visited a high school outside Chicago. The number one
concern I heard from those students was that the school district
couldn't afford to keep teachers for a full day, so school let out at
1:30 every afternoon. That cut out critical classes like science and
labs. Imagine that - these kids wanted more school. They knew they were
being short-changed. Unfortunately, stories like this can be found
across America. Only 20 percent of students are prepared to take college
classes in English, math and science. We have one of the highest dropout
rates of any industrialized nation, and barely one tenth of our
low-income students will graduate from college. That will cripple their
ability to keep pace in this global economy, and compromise our ability
to compete as a nation.
Senator McCain doesn't talk about education much. But I don't accept
the status quo. It is morally unacceptable and economically untenable.
It's time to make an historic commitment to education- a real commitment
that will require new resources and new reforms.
We can start by investing $10 billion to guarantee access to quality,
affordable, early childhood education for every child in America. Every
dollar that we spend on these programs puts our children on a path to
success, while saving us as much as $10 in reduced health care costs,
crime, and welfare later on.
We can fix the failures of No Child Left Behind, while focusing on
accountability. That means providing the funding that was promised.
More importantly, it means reaching high standards, but not by relying
on a single, high stakes standardized test that distorts how teachers
teach. Instead, we need to work with governors, educators and
especially teachers to develop better assessment tools that effectively
measure student achievement, and encourage the kinds of research,
scientific investigation, and problem-solving that our children will
need to compete.
And we need to recruit an army of new teachers. I'll make this pledge as
President - if you commit your life to teaching, America will pay for
your college education. We'll recruit teachers in math and science, and
deploy them to under-staffed school districts in our inner cities and
rural America. We'll expand mentoring programs that pair experienced
teachers with new recruits. And when our teachers succeed, I won't just
talk about how great they are - I'll reward their greatness with better
pay and more support.
But research shows that resources alone won't create the schools that we
need to help our children succeed. We also need to encourage innovation
- by adopting curricula and the school calendar to the needs of the 21st
century; by updating the schools of education that produce most of our
teachers; by welcoming charter schools within the public schools system,
and streamlining the certification process for engineers or
businesspeople who want to shift careers and teach.
We must also challenge the system that prevents us from promoting and
rewarding excellence in teaching. We cannot ask our teachers to perform
the impossible - to teach poorly prepared children with inadequate
resources, and then punish them when children perform poorly on a
standardized test. But if we give teachers the resources they need; if
we pay them more, and give them time for professional development; if
they are given ownership over the design of better assessment tools and
a creative curricula; if we shape reforms with teachers rather than
imposing changes on teachers, then it is fair to expect better results.
Where there are teachers who are still struggling and underperforming,
we should provide them with individual help and support. And if they're
still underperforming after that, we should find a quick and fair way to
put another teacher in that classroom. Our children deserve no less.
Finally, our commitment cannot end with a high school degree. The chance
to get a college education must not be a privilege of the few - it
should be a birthright of every single American. Senator McCain is
campaigning on a plan to give more tax breaks to corporations. I want to
give tax breaks to young people, in the form of an annual $4,000 tax
credit that will cover two-thirds of the tuition at an average public
college, and make community college completely free. In return, I will
ask students to serve, whether it's by teaching, joining the Peace
Corps, or working in your community. And for those who serve in our
military, we'll cover all of your tuition with an even more generous
21st Century GI Bill. The idea is simple - America invests in you, and
you invest in America. That's how we're going to ensure that America
succeeds in this century.
Reforming our education system will require sustained effort from all of
us - parents and teachers; federal, state and local governments. The
same is true for the second leg of our competitiveness agenda - a bold
and sustainable energy policy.
In the past, America has been stirred to action when a new challenge
threatened our national security. That was true when German and Japanese
armies advanced across Europe and Asia, or when the Soviets launched
Sputnik. The energy threat we face today may be less direct, but it is
real. Our dependence on foreign oil strains family budgets and saps our
economy. Oil money pays for the bombs going off from Baghdad to Beirut,
and the bombast of dictators from Caracas to Tehran. Our nation will not
be secure unless we take that leverage away, and our planet will not be
safe unless we move decisively toward a clean energy future.
The dangers are eclipsed only by the opportunities that would come with
change. We know the jobs of the 21st century will be created in
developing alternative energy. The question is whether these jobs will
be created in America, or abroad. Already, we've seen countries like
Germany, Spain and Brazil reap the benefits of economic growth from
clean energy. But we are decades behind in confronting this challenge.
George Bush has spent most of his Administration denying that we have a
problem, and making deals with Big Oil behind closed doors. And while
John McCain deserves credit for speaking out against the threat of
climate change, his rhetoric is undercut by a record of voting time and
again against important investments in renewable energy
It's time to make energy security a leading priority. My energy plan
will invest $150 billion over the next ten years to establish a green
energy sector that will create up to 5 million jobs over the next two
decades. Good jobs, like the ones I saw in Pennsylvania where workers
make wind turbines, or the jobs that will be created when plug-in
hybrids or electric cars start rolling off the assembly line here in
Michigan. We'll help manufacturers - particularly in the auto industry -
convert to green technology, and help workers learn the skills they
need. And unlike George Bush, I won't wait until the sixth year of my
presidency to sit down with the automakers. I'll meet with them during
my campaign, and I'll meet with them as president to talk about how
we're going to build the cars of the future right here in Michigan.
And when I'm President, we will invest in research and development of
every form of alternative energy - solar, wind, and biofuels, as well as
technologies that can make coal clean and nuclear power safe. We will
provide incentives to businesses and consumers to save energy and make
buildings more efficient. That's how we're going to create jobs that pay
well and can't be outsourced. That's how we're going to win back control
of our own destiny from oil-rich dictators. And that's how we'll solve
the problem of $4 a gallon gas - not with another Washington gimmick
like John McCain's gas tax holiday that would pad oil company profits
while draining the highway fund that Michigan depends on.
Moreover, our commitment to manufacturing cannot end with Green Jobs.
That's why I'll end tax breaks that ship jobs overseas, and invest in
American jobs. Senator McCain has a different view. He's voted to keep
tax incentives that encourage companies to move abroad. He should
listen to leaders in Michigan like Carl Levin, who have put forward
serious proposals to address the crisis in manufacturing. We need to
support programs like Michigan's 21st Century Jobs Fund, and build on
best practices across the country. That's why I'll create an Advanced
Manufacturing Fund to invest in places hit hard by job loss. I'll
partner with Community Colleges, so that we're training workers to meet
the demands of local industry.
And we can't just focus on preserving existing industries. We have to
be in the business of encouraging new ones - and that means science,
research and technology. For two centuries, America led the world in
innovation. But this Administration's hostility to science has taken a
toll. At a time when technology is shaping our future, we devote a
smaller and smaller share of our national resources to Research and
Development. It's time for America to lead. I'll double federal funding
for basic research, and make the R&D tax credit permanent. We can ensure
that the discoveries of the 21st century happen in America - in our labs
and universities; at places like Kettering and the University of
Michigan; Wayne State and Michigan State.
Encouraging new industry also means giving more support to American
entrepreneurs. The other day, Senator McCain gave a speech to the Small
Business Summit where he attacked my plan to provide tax relief for the
middle class. What he didn't say is that I've also proposed exempting
all start-up companies from capital gains taxes. In other words, John
McCain would tax them. I won't. We'll work, at every juncture, to remove
bureaucratic barriers for small and startup businesses - for example, by
making the patent process more efficient and reliable. And we'll help
with technical support to do everything we can to make sure the next
Google or Microsoft is started here in America.
And we know that America won't be able to compete if skyrocketing costs
cause companies like the Big Three to spend $1500 on health care for
every car, and condemn millions of Americans to the risk of no coverage.
That's why we need to commit ourselves to electronic medical records
that enhance care while lowering costs. We need to invest in biomedical
research and stem cell research, so that we're at the leading edge of
prevention and treatment. And we need to finally pass universal health
care so that every American has access to health insurance that they can
afford, and our getting the preventive services that are the key to
cutting health care costs. That's what I pledge to do in my first term
as President.
A third part of our agenda must be a commitment to 21st century
infrastructure. If we want to keep up with China or Europe, we can't
settle for crumbling roads and bridges, aging water and sewer pipes, and
faltering electrical grids that cost us billions to blackouts, repairs
and travel delays. It's gotten so bad that the American Society of Civil
Engineers gave our national infrastructure a "D." A century ago, Teddy
Roosevelt called together leaders from business and government to
develop a plan for 20th century infrastructure. It falls to us to do the
same.
As President, I will launch a National Infrastructure Reinvestment Bank
that will invest $60 billion over ten years - a bank that can leverage
private investment in infrastructure improvements, and create nearly two
million new jobs. The work will be determined by what will maximize our
safety and security and ability to compete. We will fund this bank as we
bring the war in Iraq to a responsible close. It's time to stop spending
billions of dollars a week on a blank check for an Iraqi government that
won't spend its own oil revenues. It's time to strengthen transportation
and to protect vulnerable targets from terrorism at home. We can
modernize our power grid, which will help conservation and spur on the
development and distribution of clean energy. We can invest in rail, so
that cities like Detroit, Chicago, Milwaukee and St. Louis are connected
by high-speed trains, and folks have alternatives to air travel. That's
what we can do if we commit to rebuild a stronger America.
As part of this commitment to infrastructure, we need to upgrade our
digital superhighway as well. When I looked at that map of the world
mounted on the screen at Google, I was struck at first by the light
generated by Internet searches coming from every corner of the earth.
But then I was struck by the darkness. Huge chunks of Africa and parts
of Asia where the light of the information revolution has yet to shine.
And then I noticed portions of the United States where the thick cords
of light dissolved into a few discrete strands.
It is unacceptable that here, in the country that invented the Internet,
we fell to 15th in the world in broadband deployment. When kids in
downtown Flint or rural Iowa can't afford or access high-speed Internet,
that sets back America's ability to compete. As President, I will set a
simple goal: every American should have the highest speed broadband
access - no matter where you live, or how much money you have. We'll
connect schools, libraries and hospitals. And we'll take on special
interests to unleash the power of wireless spectrum for our safety and
connectivity.
A revamped education system. A bold new energy strategy. A more
efficient health care system. Renewed investment in basic research and
our infrastructure. These are the pillars of a more competitive economy
that will take advantage of the global marketplace's opportunities.
But even as we welcome competition, we need to remember that our
economic policies must be supported by strong and smart trade policies.
I have said before, and will say again - I believe in free trade. It
can save money for our consumers, generate business for U.S. exporters,
and expand global wealth. But unlike George Bush and John McCain, I do
not think that any trade agreement is a good trade agreement. I don't
think an agreement that allows South Korea to import hundreds of
thousands of cars into the U.S., but continues to restrict U.S. car
exports into South Korea to a few thousand, is a smart deal. I don't
think that trade agreements without labor or environmental agreements
are in our long term interests
If we continue to let our trade policy be dictated by special interests,
then American workers will continue to be undermined, and public support
for robust trade will continue to erode. That might make sense to the
Washington lobbyists who run Senator McCain's campaign, but it won't
help our nation compete. Allowing subsidized and unfairly traded
products to flood our markets is not free trade and it's not fair to the
people of Michigan. We cannot stand by while countries manipulate
currencies to promote exports, creating huge imbalances in the global
economy. We cannot let foreign regulatory policies exclude American
products. We cannot let enforcement of existing trade agreements take a
backseat to the negotiation of new ones. Put simply, we need tougher
negotiators on our side of the table - to strike bargains that are good
not just for Wall Street, but also for Main Street. And when I am
President, that's what we will do.
Finally, let me say a word about fiscal responsibility. I recognize
that my agenda is ambitious - particularly in light of Bush
Administration fiscal policies that have run up the national debt by
over $4 trillion. Entitlement spending is bound to increase as the Baby
Boom generation retires. But the answer to our fiscal problems is not to
continue to short-change investments in education, energy, innovation
and infrastructure - investments that are vital to long-term growth.
Instead, we need to end the Iraq war, eliminate waste in existing
government programs, generate revenue by charging polluters for the
greenhouse gases they are sending into our atmosphere - and put an end
to the reckless, special interest driven corporate loopholes and tax
cuts for the wealthy that have been the centerpiece of the Bush
Administration's economic policy.
John McCain wants to double down on George Bush's disastrous policies -
not only by making permanent the Bush tax cuts for the wealthy, but by
$300 billion in new tax cuts that give a quarter of their revenue to
households making over $2.8 million. Worse yet, he hasn't detailed how
he would pay for this new give-away. There is nothing fiscally
conservative about this approach. It will continue to drive up deficits,
force us to borrow massively from foreign countries, and shift the
burden on to working people today and our children tomorrow. Meanwhile,
John McCain will shortchange investments in education, energy and
innovation, making the next generation of Americans less able to
compete. That's unacceptable. It's time to make tough choices so that we
have a smarter government that pays its way and makes the right
investments for America's future.
It falls to us to shape a new century. Every aspect of our government
should be under review. We can ill-afford needless layers of bureaucracy
and outmoded programs. My Administration will open up the doors of
democracy. We'll put government data online, and use technology to shine
a light on spending. We'll invite the service and participation of
American citizens, and cut through the red tape to make sure that every
agency is meeting cutting edge standards. We'll make it clear to the
special interests that their days of setting the agenda in Washington
are over, because the American people are not the problem in this 21st
century - they are the answer.
We have a choice. We can continue the Bush status quo - as Senator
McCain wants to do - and we will become a country in which few reap the
benefits of the global economy, while a growing number work harder for
less and depend upon an overburdened public sector. An America in which
we run up deficits and expose ourselves to the whims of oil-rich
dictators while the opportunities for our children and grandchildren
shrink. That is one course we could take.
Or, we can rise together. If we choose to change, just imagine what we
can do. The great manufacturers of the 20th century can turn out cars
that run on renewable energy in the 21st. Biotechnology labs can find
new cures; new rail lines and roadways can connect our communities;
goods made here in Michigan can be exported around the world. Our
children can get a world-class education, and their dreams of tomorrow
can eclipse even our greatest hopes of today.
We can choose to rise together. But it won't be easy. Every one of us
will have to work at it by studying harder, training more rigorously,
working smarter, and thinking anew. We'll have to slough off bad habits,
reform our institutions, and re-engage the world. We can do that,
because this is America - a country that has been defined by a
determination to believe in, and work for, things unseen.
Every so often, there are times when America must rise to meet a moment.
So it has been for the generations that built the railroads and beat
back the Depression; that worked on the first assembly line and that
went to the moon. So it must be for us today. This is our moment. This
is our time to unite in common purpose, to make this century the next
American century. Because when Americans come together, there is no
destiny too difficult or too distant for us to reach.
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