Here's a fascinating article by an intelligent economist, Jim Tankersly, apparently a perfectly nice fellow, puzzling over the "big mystery" of why the U.S. economy has lost so many jobs and isn't creating any more to replace them. It is rife with phrases like:
Free trade doesn't work, the global economy is a myth and the U.S. has been duped during trade negotiations for the past 40 years according to Ian Fletcher, author of Free Trade Doesn't Work: What Should Replace It and Why.
Whether a flat tariff is ultimately the best trade policy for America is an open question, but it is worth considering the possibility simply because it sets a baseline, the "least we can do," for a solution.
It is easy to forget that until about 1850, Britain, not the U.S., was the world's leading economic power. But then, of course, they blew it. There were many causes of this decline, but free trade was undoubtedly a major one.
India is building infrastructure and encouraging private enterprise. The US should invest and partner, not ignore and protect. We run the risk of becoming less relevant in Southeast Asia -- and the world.
Obama has insisted that the Bush era tax cuts, which expire this year, be extended for "only" about 98 percent of Americans, but not for households making over $250,000 a year. Hard to argue with that, but watch the GOP try.
By doubling exports, the Obama administration figures foreign consumers will fill the spending gap. Problem is, most other economies also relied on American consumers. High production and low demand could spell a trade war.
America should impose an across-the-board tariff on Chinese goods sufficient to offset not only the effects of currency manipulation, but also all the other tricks Beijing has pulled in the past and will continue trying to pull in the future.