Tag Archives: Free Trade

News

Manufacturing sector suffered sharpest drop in June for the past 12 months

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Story here from Yahoo News. (H/T Hot Air)

Excerpt:

New evidence of a slowing economic rebound emerged Thursday in reports that manufacturing activity is slowing after helping drive the early stages of the recovery.

Factory output fell in June, according to a government report on industrial production. It was the sharpest monthly drop in a year. And two regional manufacturing indexes sank this month. …

Separately, the Labor Department said wholesale prices fell for a third straight month. Prices were pulled down by a drop in energy costs and the biggest plunge in food costs in eight years. But excluding those two volatile commodities, inflation was nearly flat. …

Adding to concerns in the manufacturing sector were steep drops reported Thursday in the Empire State and Philadelphia Fed Manufacturing indexes.

CNN Money explains what went wrong for the Obammunists.

Excerpt:

The U.S. Chamber of Commerce slammed President Obama’s economic policies Wednesday, saying administration officials “took their eyes off the ball” and “neglected” to focus on job creation.

A letter posted to the business group’s site and a summit with 500 business leaders were the latest moves in an ongoing battle between big business and the Obama administration.

The two are at odds over the best way to keep the recovery from slipping into a double-dip recession. The Chamber believes tax cuts are key to job creation. The Obama administration, however, has focused on stimulus and spending to create jobs.

The Chamber said in its letter that the administration “vilified industries while embarking on an ill-advised course of government expansion, major tax increases, massive deficits and job-destroying regulations.”

Democrat voters think that a left-wing president who opposes free trade deals with Panama, Colombia, etc., and who implements socialist policies will help the working man to keep his job. But they could not be more mistaken. Attacking businesses causes businesses not to hire anyone. And workers won’t spend money when they are afraid of their job disappearing. Which business hires people when there is no demand for products and services? Government’s job is to encourage businesses to hire by cutting regulations and taxes – that’s what creates sustainable consumer demand.

Just wait until he legalizes 20 million illegal immigrants. Then his union buddies will really get a little lesson in supply and demand.

Commentary

How Obama’s opposition to free trade raises unemployment

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From Investors Business Daily.

Excerpt:

…the president said all the right things Wednesday about boosting exports, opening markets and getting Congress to approve free-trade deals with Colombia, South Korea and Panama.

[…]But as good as the speech sounded, it was no more than a reiteration of statements Obama has already made, always promising to get on it, soon. If he wants these treaties passed, he should submit the deals already negotiated and let Congress vote, up or down.

[…]Thirty-nine House Democrats and virtually all the Republicans have indicated their support, and a host of others intend to vote “yes,” though they won’t say so.

That’s why House Speaker Nancy Pelosi refuses to permit any vote on the Colombian pact, which was submitted to Congress two years ago. She doesn’t fear it’ll fail; she fears it’ll pass.

[…]Overall joblessness of 9.4% is bad enough. But among blacks, male unemployment is averaging 19.5%, and the 13.2% rate for Latinos is double what it had been most of the decade. Then there’s the 52% of young people who can’t find work.The U.S. Chamber of Commerce warns that if Congress fails to act on the three pending trade pacts, 585,000 U.S. jobs will be snatched away by rivals such as Canada. That would be a big chunk of the 3.5 million jobs Obama promised to create by year-end.

American businesses do better when they can pay less to buy the things they need to make their products from trading partners who have signed free trade deals signed with us. More efficiency means they can sell the products and services for less. That means that people buy more of those products. And then they hire more people.The number of jobs gained by improving the efficiency of businesses is higher than the union jobs saved by not signing the free trade deals. And who cares about unions anyway – unions make consumers and businesses pay too much! And they’re Democrats! So they’re crap on social issues and foreign policy anyway.

Among economists, being opposed to free trade is the equivalent of being opposed to a round Earth. But Democrats have to believe in protectionist nonsense – they are beholden to the unions that elected them who oppose choice and competition. Unions don’t want consumers to have a choice, and they don’t want to have to compete with anyone. They want to screw consumers into paying higher prices – and Obama has to cater to their delusions.

News

Fiscally conservative Canada campaigns against global bank tax

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Canadian Prime Minister Stephen Harper

Story from Breitbart.

Excerpt:

Canada will “resist” a bank tax, Industry Minister Tony Clement said Tuesday as ministers fanned out across the world to raise opposition to the proposal for avoiding another financial crisis.

“Canada is, and will remain, opposed to a tax that would penalize financial institutions that remained strong and prosperous while many of the world’s banks failed,” Clement told a press conference with Foreign Minister Lawrence Cannon.

“We will resist the bank tax here at home and we seek to convince other heads of government of the virtue of our position,” he said as senior ministers echoed his message in Mumbai, Beijing and Washington.

Attempts to reach international agreement on coordinated bank taxes at last month’s G20 and IMF meetings ran aground.

Nations including Canada and Brazil, whose banking sectors emerged largely unscathed from the financial crisis, objected to the plan, favoring higher capital reserve requirements instead.

[…]Clement said the bank tax would “encourage risky behavior” if it is used to create a bank bailout fund and “reward bad behavior” of those institutions responsible for the recent financial crisis in the first place.

As well, it would “unduly burden” Canadian banks and put them at a “competitive disadvantage” to other financial institutions.

“This tax would reach into consumers’ pockets and punish our financial institutions which have taken precautions to avoid the very turmoil that is afflicting other parts of the globe,” Clement lamented.

Stephen Harper is a fiscal conservative. He knows that low interest rates are bad, so he created tax-free savings accounts to get people to work and save their money. And he knows that people who buy houses need to be able to pay for them, and his banking policies reflect that. There is no Democrat-sponsored “Community Reinvestment Act” in Canada to allow the socialist mafia (ACORN) to pressure private banks into making risky loans. And there are no Democrats taking political contributions while blocking attempts to investigate Fannie Mae and Freddie Mac. And there are no bank bailouts!

The Conservative Party of Canada keeps its banking sector squeaky clean. They even plan to cut spending! And the Canadian people support fiscal conservatism. That’s why they aren’t facing the mess we are facing. And they have lower unemployment, too – 8.1% compared to our 9.9%. Canada is kicking our tails! How can this be? How did they manage to elect an economist, while we are stuck with this perpetually-bowing flibbertigibbet and his legions of bloviating boffins, each more corrupt and incompetent than the last? Democrats have no real-life experience! They just had rich parents!

Look at this article from the Financial Post.

Excerpt:

“In Canada, there were no taxpayer bailouts of financial institutions, so we believe there is no justification for levies on banks and financial institutions,” Harper said at a news conference following meetings with European Commission President Jose Manuel Barroso and European Council President Herman Van Rompuy.

[…]Canada and the EU are in the midst of negotiating an ambitious trade deal. The Comprehensive Economic and Trade Agreement (CETA) was launched at the 2009 Canada-EU summit and to date, three rounds of negotiations have taken place. There are at least two more to go over the next year.

The deal will give Canada greater access to the markets of the EU’s member countries and will strengthen an economic relationship that is already worth $75-billion in trade. The EU is Canada’s second-largest trading partner after the United States and is also Canada’s second-largest source of direct foreign investment, putting $162-billion into Canada in 2009.

This is grown-up fiscal policy. Government should stay out of the mortgage-lending industry, and sign as many free-trade deals as possible. The exact opposite of what the Obama administration is doing.