Obama Is Right To Support Peru Free Trade Pact
One of the biggest ideological fault lines in the Democratic Party is trade. I stand on the pro-free trade side of this issue. I supported and support NAFTA and its extension to Peru.
Among the Dem Presidential candidates, Open Left reports:
Barack Obama supports the pact while John Edwards opposes it. Hillary Clinton has yet to take a position, though she has suggested the nation may need a little "timeout" from new trade agreements pending a review of the effects previous pacts have had on American workers.
I agree with Barack Obama on this issue. More.
The opponents of free trade deals, including folks like, for the first time, to some extent, Paul Krugman, talk a lot about "economic anxiety" but very little in the way of empirical evidence as to how trade deals hurt the US economy or even the US job market. Krugman does note the limits of opposing trade deals as protecting the labor situation:
Realistically, however, labor standards won’t do all that much for American workers. No matter how free third-world workers are to organize, they’re still going to be paid very little, and trade will continue to place pressure on U.S. wages.So what’s the answer? I don’t think there is one, as long as the discussion is restricted to trade policy: all-out protectionism isn’t acceptable, and labor standards in trade agreements will help only a little.
By all means, let’s have strong labor standards in our pending trade agreements, and let’s approach proposals for new agreements with an appropriate degree of skepticism. But if Democrats really want to help American workers, they’ll have to do it with a pro-labor policy that relies on better tools than trade policy. Universal health care, paid for by taxing the economy’s winners, would be a good place to start.
Anti-NAFTA rallying cries have been fun for some, but have little to do with where the bulk of non-petroleum US imports have come from -- China, Japan, South Korea and India.
In essence, just as anti-immigration fervor reveals the ugly side of Know Nothing populism, blind opposition to free trade does as well.
The difference is that trade protectionism protects American capital much more than American labor.
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