Tag Archives: Tariffs

Michele Bachmann in defense of free trade agreements

Representative Michele Bachmann
Representative Michele Bachmann

ECM sends word of a Michele Bachmann column posted at the Heritage Foundation!

Excerpt:

Each day in Minnesota and all across the nation, billions of dollars worth of products begin their journey to be sold overseas. American farmers, manufacturers, and businesses rely on exports to strengthen and grow both their bottom line, as well as our economy’s.

Free and fair trade agreements help spur economic growth; improve efficiency and innovation; create better, higher-paying jobs for hard-working Americans; and increase the availability of lower-priced products here in the United States.

Furthermore, the role of free trade as an expression of liberty and opportunity for all individuals signifies the very principles our country was founded upon.

Yet, the free trade agreements with Panama, South Korea and Colombia negotiated under the Bush Administration remain little more than words on paper. Despite having been carefully negotiated over a period of two and half years, these agreements have become bogged down by partisan divides. In the meantime, with an average tariff of 53% imposed on U.S. agricultural products by South Korea last year, for example, there is little wonder the United States International Trade Commission estimates U.S. sales of agricultural products could increase by as much as $3.8 billion once the U.S.–South Korea agreement is fully implemented.And while Congressional leaders seem content to leave these agreements on the back burner, America’s fragile industries are left hanging in the balance. The impact of depressed exports is fully evident to those who make their livelihood from them. In fact, Minnesota’s manufacturing exports experienced a 19% decline during the first quarter of 2009, mirroring a similar decrease nationwide. And our agricultural sector, especially our ailing pork and dairy producers, certainly needs no reminder of the importance of expanded export channels to the survival of their farms.

Click through and read the whole thing.

Reading this column filled me with joy and admiration, because Michele Bachmann shows  how good a Christian woman can be if she puts her mind to it. It’s so good that she has an informed view of economic policy and realizes how prosperity is important to Christians who are trying to marry and raise a family. Money is the fuel we use to run our life plans, so we all need to have jobs and to make sure that our dollar buys as many useful things as possible, by keeping prices low.

Here are my recent posts on Michele Bachmann:

You can click here for her video blog.

Please contribute to her 2010 campaign, if you can.

Here are all the posts tagged “Michele Bachmann”.

New Alfonzo Rachel video

By the way, for my female readers, the male equivalent of Michele Bachmann is Alfonzo Rachel. You can see his latest video which explains why Christianity is not compatible with socialism. He’s a devout Christian and he understands economics. He also is very entertaining in these videos he makes for PJTV.

What is our exit strategy from the quagmire of this unilateral war?

The world is angry with our policies

Look, even the National Review wants us out of this unilateral war that is making the whole world hate us!

Canada and Mexico, our top two export markets, are embroiled in trade feuds with the U.S., both triggered by American protectionism. As a global leader and a decent hemispheric neighbor — especially during these economic doldrums — the United States immediately should rejoin Canada and Mexico on the road to free trade.

…Obama’s $410 billion omnibus spending plan defunded a pilot program in which about 100 Mexican trucks were allowed to drive goods into the U.S. beyond a 25-mile frontier zone. American trucks were given equal access to Mexican destinations. (Removing goods from one country’s trucks and reloading them onto the other’s for onward travel has boosted transit costs anew. These eventually increase price tags.)

Mexico correctly argues that the North American Free Trade Agreement, which President Clinton signed in 1995, opened U.S. roads to Mexican trucks. However, Washington kept dragging its feet. In 2002, Congress imposed 22 safety regulations on Mexican (but not Canadian) trucks, and it was only in 2007 that the Bush administration started the pilot program. In exasperation at the cancellation of this initiative, Mexico has raised tariffs on 90 American exports worth $2.4 billion, including grapes and toilet paper. This reportedly will kill 40,000 American jobs. Mexico’s backlash against U.S. protectionism interrupted its unilateral reduction of average industrial tariffs from 10.4 percent in 2008 to a projected 4.2 percent in 2013.

Even worse, June 1 brought word that Canacar — an association of 4,500 Mexican trucking companies — had filed a grievance with the U.S. State Department seeking $6 billion in damages because of the pilot program’s termination and the resulting brick wall that arose in front of big rigs at the border.

“We want reciprocity,” Canacar attorney Pedro Ojeda told the Wall Street Journal. “The U.S. has notoriously not kept its commitments.”

I mean trade war, of course.

The world is angry with America

Andrew Roth writes:

China has now retaliated with a “Buy China” provision in their own stimulus bill. Canada has complained and all Secretary of State Hillary Clinton has done in response is pledge “cooperation.” No, we don’t need pledges. We need to revoke “Buy American.” We need to kill it.

Here is a list of countries that are angry with Obama’s short-sighted protectionism.  He wants to isolate America from the rest of the world by refusing to sign trade deals with them.

Canada ($600B) passes resolution to counter “Buy American” policy.

The European Union ($639B) calls it the “worst possible signal.”

Japan ($204B) warns the United States, and Australia ($32B) threatens retalitory measures.

After slamming the “Buy American” policy, India ($43B) raised tariffs.

Singapore ($43B) is concerned with “Buy American.”

The president of Brazil ($62B), a former labor activist, criticizes Buy American and has threaten to challenge the U.S. at the WTO.

France‘s ($72B) Nicholas Sarkozy wants a “Buy France” provision for french auto companies.

Big Labor opposes free trade, and Big Labor helped to get Obama elected.

So now we get a trade war.

4Simpsons explains why tariffs turn recessions into depressions

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.