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Ian Fletcher

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Obama's Trans-Pacific Partnership Disaster

Posted: 11/21/11 08:27 AM ET

Will America ever learn?

No, I guess not.

After the failed promises of NAFTA, a job-destroying trade deficit that has burgeoned despite a long series of free-trade agreements, and ever-more-aggressive foreign mercantilism, we're plowing ahead with even more of these agreements.

Fresh from passing the Colombia, Korea, and Panama free trade agreements, Obama now wants to move forward to the long-bruited but dormant proposal for a Trans-Pacific Partnership.

Not the man we voted for in 2008, is he?

The proposed agreement would embrace Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam to start. Eventually, its advocates hope, it will include every nation on the Pacific rim, including Indonesia, the Philippines, Japan, Mexico, Russia, and China.

Yes, you read that right. China.

Goes without saying that it's a terrible idea, and I've made a video discussing why. See below:


Don't look for any hope from the other side, by the way.

The only Republican that I believe wouldn't do such things is self-confessed long-shot Buddy Roemer. Mitt Romney has been sounding of late like he'd get tough on China if elected (I don't know if he's sincere), but he's also committed himself to passing more trade agreements (and I must assume he means it).

 
 
 

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Will America ever learn? No, I guess not. After the failed promises of NAFTA, a job-destroying trade deficit that has burgeoned despite a long series of free-trade agreements, and ever-more-aggressi...
Will America ever learn? No, I guess not. After the failed promises of NAFTA, a job-destroying trade deficit that has burgeoned despite a long series of free-trade agreements, and ever-more-aggressi...
 
 
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TheTightwireGuy
Attempting to balance reason and passion
12:34 PM on 11/23/2011
As much as we can rail against the FTAs our leaders have gotten us into, the political tide to repeal them is just not going to come in anytime soon. So what can be done to counter their corrosive effect on the US job market? Reform federal income taxation to give strong incentives for businesses to pay more Social Security wages relative to taxable profits.

Conservatives and centrist Democrats are clamoring for the federal corporate tax rate to be UNCONDITIONALLY lowered, supposedly to stimulate domestic job growth. Alternately, I believe that the federal corporate tax rate should be CONDITIONALLY lower based on the ratio of Social Security wages a firm pays relative to its taxable corporate profits. I call this the Social Contribution Rate (SCR). Make the tax differential based on the SCR so attractive, and businesses will be strongly incentivized to (a) hire more workers in the US, and (b) pay higher wages to US workers.

The tax differential based on the SCR would need to be substantial (e.g. 0% for the highest ratio firms and the current rate, 35%, for the lowest), as well other provisions to keep firms from gaming the code, but such a corporate tax reform would be SUBSTANTIALLY better for the US middle class than unconditionally lowering the federal corporate tax rate than "job growth" advocates, including Obama, have been calling for.
03:04 PM on 11/22/2011
Just more Obama Failure...no real news here.
08:05 PM on 11/22/2011
I disagree, and strongly. I'm libertarian, so I pretty much despise both branches of the "Big Government" party (Democrats and Republicans) we have at the reins now.

However, up until this trade agreement, I would still have voted for Obama. About the only major screw-up by Obama prior to this was the Health Care bill. Really think McCain would have done any better? This trade agreement and pushing forward to seeing our country further damaged by abandoning the things which kept this country great for ~200 years is exactly what I needed to see to make my mind-up to abandon any support for Obama in 2012.

For a guy who talked about protecting American interests, Obama, with this, shows us he has no clue how to accomplish it, indeed, is doing just the opposite. However, these laws DO benefit the wealthy, international American companies, and those are the people who contribute to his campaign funding, so this move IS! news. It puts a huge stamp on Obama's head of "I've given up trying to salvage middle and lower class American interests. I'm abandoning them. Now I just want to financially enrich myself."

You know, back in (IIRC) 1764, all 13 colonies managed to get together, without the use of the world wide web and boycott English products. Isn't it about time we, as Americans, get together and try to form a boycott ourselves? Of ANYTHING imported from China?
10:33 PM on 11/22/2011
Great point. But to throw a wrench into it all, i'm to the point where i'll buy junk made in China ILO spending my hard-earned money on anything made by corrupt US labor unions. I'm tired of them using my expenditures on scams against taxpayers, and tired of them using my money to prop up liberal politicians like Obama and Pelosi who in-turn propagate their little vote-buying scams at our expense.
10:17 AM on 11/22/2011
The TPP is really a plot to constrain China. India which is not a Pacific Ocean country is being invited for that reason. Also setting up a free-trade zone to the exclusion of a continent such as Africa where there are many countries who could use less barriers for their exports is once again left to flounder. At least China is building infrstructure in the latter while at the same time paying those countries for resources. See the book: The Dragon's Gift: The Real Story of China in Africa.
01:25 PM on 11/22/2011
How will losing our sovereignty to unelected judges in Geneva constrain China?
04:41 PM on 11/22/2011
China is not currently being invited to join the TPP and it is pure speculation as to whether she will be invited at a later stage. Not being in the TPP will handicap China's exports to the TPP countries in relation to the latter's inter-zonal trade. Having said that, most of the initial entrants to the TPP already have bi-lateral trade agreements with China and one or two of the former even have FTA's with her. With all the self-interest of the individual aspiring TPP countries (including the USA) I'd doubt if there will be absolute free trade between the participating countries. But the USA has shown her hand in dealings with China. The tone has been set and cannot be made to sound any sweeter. Nobody has mentioned anything about Swiss judges being the arbiter for the TPP at this stage.
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Fred Scarran
04:33 AM on 11/22/2011
The text is missing in video for me.
07:04 PM on 11/21/2011
Well, its doesn't matter if it hurts American workers my friend. The only thing that matters is that certain groups make a fortune off the American economy. Therefore, talk all you want about whats fair and they will laugh all the way to the bank. They love your talk. They find it amusing. Why? Because all you do is talk without any real power. Have you started some movement? A political party? protests? No? well than talk all you want as they are not listening. "They" are the rich and powerful who basically rule Congress and therefore this country. Nothing will change until they push too far and at that point people will finally wake up. Money rules this country. Therefore those who have the most money rule America. Its the American way. Isn't it?
01:58 PM on 11/22/2011
True, but talking and sharing ideas is critical. Otherwise when the wall fall there will be a complete power vacuum. Its important that powerless people understand why they are powerless and how they are s crewed. Otherwise they will just embrace a new corporatist regime.
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LeftCoastEng
Obsessed with failed trade
04:42 PM on 11/21/2011
Did you hear that Libertarians and other Right Wingers? These free trade agreements erode our national sovereignty. Our ability to govern ourselves is partially turned over to foreign courts. Where's the outrage??!!
06:17 PM on 11/21/2011
Strange thing is, the only politician I'm aware of that's willing to call this out is Buddy Roemer, a Republican though of course he's been completely ignored by his party.
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cyclone70
When one facepalm isn't enough
06:23 AM on 11/22/2011
And ignored by the corporate media
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06:18 PM on 11/21/2011
Money wins over outrage every time.
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TheTightwireGuy
Attempting to balance reason and passion
02:37 PM on 11/21/2011
Upon learning about the TPP and its support among leading Democrats, I am not optimistic about the prospects of turning back the tide of outsourcing that the FTAs have visited upon the US worker. Because the mobility of capital is immensely greater than the mobility of labor under these FTAs, the bargaining power of workers everywhere is severely reduced. This results in more of the wealth creation from commerce and industry to flow to capital owners relative to workers. Without government intervention to shore up the bargaining power of workers (as in Germany, for example) or structural encouragements for the wealthy to increasingly subsidize the lifestyles of the working class, these FTAs will accelerate the accumulation of wealth in our society to the point where our representative government will fail. How it fails is up for debate. That it will fail is borne out by historical examples where the class between the propertied class ignored to their peril the interests of the common citizen (e.g. Rome, France, Russia, Germany, China, to name a few).
06:15 PM on 11/21/2011
Exactly right. No government lasts forever, but we are not giving history a sterling example of what democracy can achieve.
02:02 PM on 11/22/2011
Democrats and Republicans are two sides of the same coin. The first step is realizing we live in an ersatz democrasy. Once you realize we live under a corporate communist dictatorship then things make sense. We do not have free markets in any sense of the term. We do not have free elections either. We get to pick between two corporate approved candidates. That is not a democrasy or a republic. Its corporate communism.
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TheTightwireGuy
Attempting to balance reason and passion
09:10 PM on 11/22/2011
mashtoe, I sense a lot of emotion behind your statements, but the label of "corporate communism" seems quite off. Using it's description on Wikipedia:

"Communism is a social, political and economic ideology that aims at the establishment of a classless, moneyless, revolutionary and stateless socialist society structured upon common ownership of the means of production."

There is nothing classless, moneyless, revolutionary or common about the ownership of the means of production in our political system.

A better moniker is "corporatocracy":

http://en.wikipedia.org/wiki/Corporatocracy
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cyclone70
When one facepalm isn't enough
01:01 PM on 11/21/2011
McCain told a group of autoworkers while on campaing in MI when asked about FTA

The reason free trade wasn't working was because we weren't doing enough of it

isn't the definition of insanity doing the same things over and over and expecting different results?
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SteveM39
That's how dad did it, that's how America does it
02:39 PM on 11/21/2011
Yet we keep electing him. So who is the crazy one?
02:03 PM on 11/22/2011
I think you need to look at the fact you only get two choices in the election. Why do we only get to pick from corporate Democrats and corporate Republicans?
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Fred Scarran
04:36 AM on 11/22/2011
We are not given an alternative choice.
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01:51 PM on 11/22/2011
The whole political game is rigged to prevent the appearance of true alternatives. This is part of what Occupy is all about.

Government gives you the choice between "same" and "even worse." -all corporately owned before the first vote is cast.

Give us our government back. Or become irrelevant as the government totally fails and no one notices.
02:04 PM on 11/22/2011
Nobody is going to give you a choice. You have to make it happen. Get involved. Run for local office. Get organized.
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12:14 PM on 11/21/2011
Imagine no more "Made In China" labels...

http://www.manufacturingnews.com/news/11/0930/madeintheworld.html
European Technocrats May Soon Deprive Americans Of Knowing Where Everything They Buy Is Made

"The World Trade Organization, the OECD, the International Chamber of Commerce and the European Commission are moving aggressively to eliminate "Country of Origin" labeling, claiming that it does not reflect the current structure of global trade. The Europe-based organizations instead want to adopt a "Made in the World" logo for all products on the grounds that global supply chains have rendered country of origin labeling inaccurate and obsolete.

The intent of the proposal is to reduce public pressure on politicians for protectionist trade policies. "We are going to make history on how we look at trade statistics," says Lucian Cernat, chief economist in the trade division of the European Commission. Europe, which had a $96 billion trade surplus with the United States in 2010, "is ready to act."

The WTO has been working on Made in the World since late 2007, "but in the past two or three years there has been huge momentum to get the necessary information" that would be used to rationalize elimination of country of origin labeling, says Andreas Maurer, chief of the WTO's International Trade Statistics Section..."
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RockyMissouri
'You must be carefully taught to hate'...
03:26 PM on 11/21/2011
Nah... I'll stick with 'Made in USA' ......! Although..... shouldn't we support EVERYONE...?? It's not right that some get most......and others, so very little... We need to help fix that, so that we might see ourselves in the mirror....... and LIKE our reflection again.
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05:37 PM on 11/21/2011
There won't be any "Made In USA", "Made In China", or "Made In The Philippines" labels.

I'm surprised the WTO & Friends haven't proposed changing dropping the first digit of vehicle identification numbers, which tell the country of assembly.
02:05 PM on 11/22/2011
You don't get it. You won't have a choice. Both parties want to make "made in America" illegal to put on goods.
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cyclone70
When one facepalm isn't enough
06:27 AM on 11/22/2011
We need tougher not weaker product origin labelling

we already have deceptive and non exisitant origin labelling. Much of what is "manufactured" in the US anymore is a final assembly point or repackaging operation of foreign made components

notice how packages of personal care products and foods will often just say "distributed by" rahter than "made in" this is a deceptive ploy to mask where the stuff really comes from
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10:08 AM on 11/22/2011
Agreed.

The U.S. should withdraw from the WTO while it still has some semblance of sovereignty.
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Malcolm Hensley
Last of the Reagan Republicans
11:57 AM on 11/21/2011
I was checking the U.S. Census Data.

Did you know in 1991 our total trade deficit was about $31 billion!

Did you know that our tade deficit with just China in 2010 about $273 billion! Our total deficit was over $500 billion!

Ever noticed how our poverty rate seems to be tied to our trade deficit?

I imagine the only People who can convince themselves that Unrestricted Free Trade is either a Wall Street Crony or a Wall Street Stooge!

Kind of explains the Republicans and our current Democrats in my book! I call this crop of Democrats Clinton Democrats, aka the old Rockefeller Republicans, you know the kinder gentler Republicans. Both parties take theor marching orders from Wall Street!

Where have all the Roosevelt Democrats gone?

You know the guys who would know on an instinctual level Unrestricted Free Trade hurts the poor and minorities disproportionately more! Sure they get cheap stuff from Wall Mart but if they don't have a job and have no money what's the point!

Ever wonder what our Federal Deficit might be if instead of 9% unemployment if we only had 5 or 6% unemployment?
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cyclone70
When one facepalm isn't enough
12:55 PM on 11/21/2011
Over 50,000 factories in the US have closed in the past decade. that is an average of 1000 per state ( more in heavily industrilalized states) assume conservatively each factory employed 100 workers that is 5 million workers.

Now factor in the companies that serviced and supplied those factories that they too had to either close or downsize and you could have numbers easily double that 5 million

So what if these factories had not closed - would the job growth during the Bush admin have been so anemic? would we be dealing with 9+% unemployment now? would the recovery from the 08 depression been much more robust? one has to think so
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Malcolm Hensley
Last of the Reagan Republicans
02:39 PM on 11/21/2011
See I stopped putting the blame on President Bush some time ago when I realized it was a bipartisan effort!
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11:20 AM on 11/21/2011
More people are realizing that Democrats AND Republicans are just two wings of what Thomas Ferguson calls the Property Party in his "Golden Rule:..." book, first published in 1995:

http://www.amazon.com/Golden-Rule-Investment-Competition-Money-Driven/dp/0226243176
Golden Rule: The Investment Theory of Party Competition and the
Logic of Money-Driven Political Systems (American Politics and Political Economy Series

"To discover who rules, follow the gold." This is the argument of Golden Rule, a provocative, pungent history of modern American politics. Although the role big money plays in defining political outcomes has long been obvious to ordinary Americans, most pundits and scholars have virtually dismissed this assumption. Even in light of skyrocketing campaign costs, the belief that major financial interests primarily determine who parties nominate and where they stand on the issues—that, in effect, Democrats and Republicans are merely the left and right wings of the "Property Party"—has been ignored by most political scientists. Offering evidence ranging from the nineteenth century to the 1994 mid-term elections, Golden Rule shows that voters are "right on the money."
10:14 AM on 11/21/2011
Congress is responsible to represent US workers. Buddy Roemer is being blackballed by the media because Congress has sold out the interests of US workers for the benefit of campaign contributors. The only hope is for US unions to get behind candidates to broadcast the truth about the root reason why there is high unemployment today along with a rise in poverty. The problem is unbalanced trade and outsourcing of US workers job opportunities. Americans do not understand that the deal they are getting is not the best deal when taken in account what Americans have given up in return.

That will not happen until US voters get the message and vote out all the Congressioal puppets of high campaign contributors that benefit most from unbalanced trade.
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cyclone70
When one facepalm isn't enough
12:57 PM on 11/21/2011
every 1 billion in trade defict equates to 20,000 jobs lost ( some say 10,000 - either way its a significant number)
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cyclone70
When one facepalm isn't enough
12:59 PM on 11/21/2011
Article 1 section 8 of the constitution gives congress the authority and responsibility to regulate trade between nations - a job they have badly shirked
09:52 AM on 11/21/2011
Obama is by far the worst President in American history. Not only has he squandered our childrens' and grandchildrens' futures he has killed more jobs than any President in history. Refusing to produce American energy has cost millions of jobs and spent billions on foreign oil. Imposing more regulations on business and manufacturing has kept more than $2 trillion dollars from being invested in American industry. Obamacare and Dodd/Frank have killed several million more jobs. Wasting more billions on bogus Green Energy Scams is only the icing on the cake.

It will take decades to recover.
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Jim bob
Be the change you wish to see.
11:00 AM on 11/21/2011
Truth is the first casualty of war. Listen to yourself.
01:53 PM on 11/22/2011
Obama supports H-1B work visas. I witnessed first hand how we laid off middle aged Americans and then replaced them with imported workers on H-1B work visas. I have called all my Democratic party representatives and NONE will lift a finger. Instead Obama and his people (Tim Geithner and Gary Locke) have stated their support for expanding H-1B. Now, tell us how you can say that Obama who is supporting wage suppression during the worst economy in 70 years can get away with supporting H-1B and free trade with communist China?
Yes, Bush was a disaster. But that doesn't mean Obama isn't also a disaser.
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01:54 PM on 11/22/2011
Sometimes talking to the deaf is as helpful as slamming yourself in the head with a hammer.
12:28 PM on 11/21/2011
You really truly believe all of the lies you have learned so well on Fox news. Congratulations! You are a model student of Rush Limbaugh and the rest of Fox news. What will take decades is for all of the lies you have so readily learned and absorbed to be debunked. Read a book, travel to Europe and think for yourself, just once.
04:02 PM on 11/21/2011
Another kool aid drinker I see.
01:55 PM on 11/22/2011
What lies? Do you deny that the Democrats support NAFTA, work visas, amnesty for illegals, and free trade with communist China? Did you forget that it was Bill Clinton who gleefully signed into law free trade with China, NAFTA, many of the work visas, and banking deregulation.

Or is it somehow magically different when Democrats offshore jobs to dictatorships?