Tag Archives: Free Trade

News

Is Obama saving or creating jobs?

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KSDK reports that Obama’s cuts in defense spending will cost St. Louis 30,000 jobs. (H/T Gateway Pundit)

Excerpt:

Thousands of jobs could be in jeopardy at St. Louis’ second largest employer: Boeing.

The aerospace company announced the government’s planned defense budget cutbacks will slow production of two locally-built planes and eliminate the jobs of the employees who make them. Michael Moran has helped build hundreds, if not thousands, of C-17 cargo planes.

…The bottom line is Boeing needs to get through to President Obama, Congress and Secretary Gates. If not, they stand to lose more than 5,000 jobs at Boeing in St. Louis, and 30,000 total local jobs, including suppliers.

Boeing executives are reaching out to anyone who will listen. They’re trying to get Congress to put the planes back in the budget.

The video is here.

And remember the protectionist regulations Obama included in his Porkulus bill? Recently, we talked about how the “Buy American” provisions of the stimulus bill caused American companies to stop buying anything from Canada for their projects. Well guess what? The Canadians were not amused.

Here’s the story from the left-wing Washington Post. (H/T Ace of Spades)

This week, the Canadians fired back. A number of Ontario towns, with a collective population of nearly 500,000, retaliated with measures effectively barring U.S. companies from their municipal contracts — the first shot in a larger campaign that could shut U.S. companies out of billions of dollars worth of Canadian projects.

And it’s going to cost American jobs:

The new buy American provisions, the company said, are being so broadly interpreted that Duferco Farrell is on the verge of shutting down. Part of an increasingly global supply chain that seeks efficiencies by spreading production among multiple nations, it manufactures coils at its Pennsylvania plant using imported steel slabs that are generally not sold commercially in the United States. The partially foreign production process means the company’s coils do not fit the current definition of made in the USA — a designation that the stimulus law requires for thousands of public works projects across the nation.

In recent weeks, its largest client — a steel pipemaker located one mile down the road — notified Duferco Farrell that it would be canceling orders. Instead, the client is buying from companies with 100 percent U.S. production to meet the new stimulus regulations. Duferco has had to furlough 80 percent of its workforce.

“You need to tell me how inhibiting business between two companies located one mile apart is going to save American jobs,” said Bob Miller, Duferco Farrell’s executive vice president. “I’ve got 600 United Steel Workers out there who are going to lose their jobs because of this. And you tell me this is good for America?”

Losing your job sucks, and there’s going to be a lot more of it until people shut off their televisions and pick up some books on economics, like the Federalist Papers or The Road to Serfdom. Learn a little about what made our country not like North Korea. Our prosperity wasn’t an accident, it was the result of a set of decisions made by men who believed in God, human rights and free enterprise.

UPDATE: The Competitive Enterprise Institute has more on the trade war with Canada.

News

4Simpsons explains why tariffs turn recessions into depressions

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I was browsing around on 4Simpsons, my favorite Christian Living blog, and I found this gem of a video on Neil’s latest round-up of links. I love this blog, because you get solid economics, solid social conservatism and solid apologetics.

Here’s the video:

It features Amity Shlaes, whose voice I find irresistible! And Jagdish Bhagwati, too.

If you are a Christian and you voted for Democrats, please listen to this lecture by Jay Richards on the “Myths Christians Believe about Wealth and Poverty“. When Jay mentions the “Trading Game” and networking theory, I had to study that in grad school e-commerce: “Metcalfe’s Law” and “network externalities”.

If you want to read the book by Henry Hazlitt that he mentions, it’s all posted online here. But I recommend Robert P. Murphy‘s “The Politically Incorrect Guide to Capitalism” as the best economics book for beginners. Better than Tom Sowell‘s “Basic Economics”? For beginners, yes! Get both, they’re all you need to understand basic economics.

Now, remember how leftist Democrats were always complaining about how much the world hated us because of Bush? Yeah, they didn’t really hate us then, (because they all voted in conservatives themselves!), but they really hate Obama’s trade policies now!

Take a look at what Canadians think of Obama‘s Buy American anti free trade policy: (H/T My best friend, Andrew who has a perfect marriage)

The dire predictions about Buy American are coming true. From pipes and water pumps to steel beams and office furniture, a wide range of Canadian manufacturers are suddenly finding themselves shut out of traditional markets south of the border, according to industry and government officials.

…Canadian Manufacturers and Exporters (CME) has compiled a list of seven pieces of legislation now before Congress that contain overtly protectionist language. They include bills to fund local sewer and water projects, expand broadband access, build smart electrical grids, replace Air Force One, purchase 100,000 hybrid vehicles, and build and renovate government buildings.

…Canadian steel makers and fabricators are feeling the impact of Buy American restrictions, which were inserted into the stimulus bill to appease U.S. steel makers and workers. Companies are losing orders, threatening $1-billion-a-year worth of exports, according to Ed Whalen, president of the Canadian Institute of Steel Construction.

Who loses from Americans paying too much for materials and products? Canadian companies and consumers are hurt from lost revenue, so they lay people off and buy less of our stuff. US companies pay more for materials, so they lay people off. US Consumers, who must pay more for products they could have got cheaper. And taxpayers, whose money is wasted by paying too much for government projects.

And who gains from protectionism? Why Obama’s union supporters and donors, that’s who. It’s basically a legal way of rewarding the people who put you in office ,and buying the next election with money confiscated from the productive private sector, i.e. – your boss.

A comprehensive article about Obama’s plans for energy policy, which will really destroy the economy and cost us piles of jobs, is here.

Podcasts

IBD: Canada fills Obama’s leadership void

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Canadian Prime Minister Stephen Harper
Canadian Prime Minister Stephen Harper

Investors Business Daily had a good post up about how other countries with more conservative leadership are picking up the slack left by Obama’s naive socialism. Canada is led by economist Stephen Harper, who studied the economic theories of F.A. Hayek and other proponents of free-market capitalism. Harper understands what economic policies promote liberty.

Here is an excerpt from the article: (a podcast version is here)

Thus far, the Obama administration seems more interested in continuing its global apology tour, Latin edition, during this weekend’s Fifth Summit of the Americas than he is in leading. His accusations against America are stronger than his promotion of the institutions and treaties that bring authentic democracy and prosperity to our hemisphere.

Obama’s aversion to policies like free trade, which supports liberty and prosperity, is well known:

Today, Obama is paying only lip service to that trade goal while two finished free-trade treaties with friendly American allies Panama and Colombia sit in his desk drawer, unvoted-on in Congress.

He speaks of the U.S. being “distracted by other priorities” but in reality he’s only “distracted” by listening to Big Labor, which has tried to shut Colombia and Panama out of free trade.

In the same way, he’s distracted by the Farm Lobby’s campaign cash and won’t think of ending the senseless tariffs on Brazil’s ethanol — another major free-trade, and energy policy, issue.

He has yet to expend political capital to muscle Congress to put those tariffs and treaties to a vote. If he did, he would show leadership. It’s not going unnoticed by democratic leaders of our hemisphere, who, from Brazil to Chile to Mexico to Peru, are urging him to take action. This is the one issue he should be showing strong leadership on. But he isn’t.

Yes, the world is truly against us because of Obama’s economic ignorance. But there are some liberty-opposing communist dictators that love Obama – because he supports their dictatorships and the repression of common people who don’t even have enough to eat or the opportunity to earn a decent living. IBD continues:

The region’s protectionists can be counted on one hand, and they just happen to be the same countries trying to ruin their own democracies — among them Venezuela, whose de facto dictator, Hugo Chavez, declared at the last summit in 2005 he would “bury” free trade of the Americas. With Obama failing to lead, he’s effectively handing Chavez the leadership, as well as a victory.

He’s also giving Cuba a victory, unilaterally loosening rules for remittances to the island, providing the bankrupt Castro dictatorship with an economic lifeline as well as a fresh pool of visitors to spy on, blackmail and potentially recruit.

Hot Air links to the photos of Obama accepting gifts and shaking hands with dictator Chavez. Hot Air writes:

Via Tapper, the long-awaited meeting between the “destructive force” and the “ignoramus” hath come to pass. There are already a few photos of the encounter at Yahoo News but you have to go to Facebook for the best one. Check out that thousand-watt grin. Funding FARC, imprisoning dissidents, staging wargames with Russia, and of course consolidating dictatorial power — none of it’s enough to ruin a photo op for The One. I hope this at least convinces El Presidente not to throw that Cuba-themed tantrum at the summit that he’s been planning. We deserve something in return for the free propaganda Barry just handed him.

The world opposes Obama’s unliteral war against free trade. Even Russia is disgusted with Obama’s economic naivete. And so is China. But what about Stephen Harper and Canada? IBD’s article continues:

Canada, by contrast, is taking the lead. Prime Minister Stephen Harper said his top priority at the Summit is to champion free trade, in line with the will of the region’s real democracies.

“Our focus for the Summit of the Americas will be about free trade and avoiding other countries moving back to protectionist measures,” Harper’s spokesman said. “Canada’s position is that we must not allow the impact of the (financial) crisis to reverse our hard-fought progress towards freer trade and investment.”

…What a shame that it’s now left to Canada to do the heavy lifting on the actions that will genuinely advance peace and prosperity in our global neighborhood.

According to this just-released news story from CTV, Harper is pledging 4 billion dollars to spur trade with Latin America.

Excerpt:

Prime Minister Stephen Harper is pushing for greater regional co-operation and better hemispheric trade relations at the Summit of the Americas, pledging $4 billion in loan guarantees for Latin American countries.

…Harper said on Saturday that loans to the Inter-American Development Bank will help nations in the region get access to credit and build their economies.

“Canada is taking the lead when it comes to ensuring that countries continue to trade during a time of economic contraction,” said Harper in a statement. “This has not been done before and is a very significant contribution.”

Meanwhile, Obama is making Iran and North Korea feel comfortable about their pursuit of nuclear weapons. What a difference there is between Harper and Obama!

Harper’s recognition of Easter and the importance of religious liberty

Religious liberty is the liberty that I value most. Isn’t it amazing that at a time when Obama is taking steps to greatly reduce the freedom to express Christian convictions in public, that up north the prime minister of Canada is talking about the resurrection of Jesus and the importance of religious liberty as a Canadian tradition?

In case you missed it, here are some videos of Harper on CNN and Fox News, as well one from CNBC with Larry Kudlow. I previously wrote about how Colombia is trying to diversify their economy in the wake of Obama’s snubbing them on the proposed free trade deal.