Listening to the presumptive Republican and Democratic candidates for the White House, the average voter would think that international trade and investment is a zero sum game in which there is a “winner” and a “loser.” Their economic policy assumption is that other countries are gaining at the international trade game at the expense of the United States.
Tagged: free trade
Why have prices fallen so low? Because government subsidies created a glut – and the market is flooded. This government money warps and distorts the marketplace – as otherwise productively-directed time and effort is instead spent chasing the government coin. Producers produce not what the marketplace needs – but for what the government pays.
TweetAlthough President Barack Obama claimed in his sixth State of the Union Address, “No challenge – no challenge – poses a greater threat to future generations than climate change,” neither[…]
In something of a joke, President Barack Obama says Americans should actually read the Transpacific Partnership Agreement. The agreement itself consists of 30 chapters, with 144 annexes (43 of which are imbedded into specific chapters). Assuming the average American reads 200 pages a day, it would take a month. The length and complexity of the TPP Agreement signals that it is not fundamentally a free trade agreement, but is rather a managed trade agreement. As Obama has said, “I know that if you take a look at what’s actually in the TPP, you will see that this is, in fact, a new type of trade deal.”
“Trade Wars” actually aren’t about trade — they are about government trade policy. If peoples are trading freely, there isn’t a “War” – there’s commerce. The “Wars” only happen when governments get involved, placing tariffs, regulations and subsidies in the way of the flow.
More government means more expensive everything. Every second and penny spent paying government taxes and complying with government regulations – raises the prices of the goods and services people proffer.
Most of us on the center-right very much like free trade — for at least a couple of reasons. The freer trade is, the cheaper the things traded are. Which makes life easier for everyone in the nations engaged in said trade.
The real purpose for his visit to Washington, D.C. and his address before Congress was to push for Congressional approval of the Trans-Pacific Partnership (TPP) between the U.S., Japan and 10 other nations (Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam). Meant to extend and widen trade and related commercial relationships between the participating countries, it is also been presented as a way for the U.S. to maintain his economic and political power in East Asia in the face of the rising influence of China in that part of the world.
The US-EU “competition” of protectionist digital industrial policies — U.S. Title II net neutrality vs. the EU’s emerging “platform neutrality” plans — creates an ironic backdrop to negotiations for the US-EU Transatlantic Trade and Investment Partnership (TTIP) “free” trade agreement. Heightening the irony, the Obama Administration, not the European Commission, has been the protectionist digital industrial policy leader, trailblazing the political path for the EU’s Single Digital Market to follow.
In fall 2014, Speaker of the House John Boehner (R-OH) refused to allow a vote on the Marketplace Fairness Act (MFA), a bill effectively forcing online businesses to collect and remit sales taxes to cities, counties, and states in which they are not located.
Hershey’s – the Candy Man – is a BIG business. Its May 2014 market cap was $23.26 billion.
And Hershey’s is very generous with government. Through the second quarter of last year, it had spent $8,332,000 on lobbying and $845,534 on candidates and elected officials. Tallies no Mom & Pop Candy Shoppe can come close to matching.
The Twentieth was the Century of the Welfare State. Governments the world over built and then continuously grew their domestic aid money delivery apparatuses. Tens of trillions of dollars were spent in attempts to raise poor people up and out.
It’s been disastrous.
We recently discussed a bipartisan group of Senators and House members who correctly identified a global trade problem and its negative domestic ramifications. 57 Senators and 152 House members…sign(ed) letters to Barack Obama Administration Secretary of Commerce Penny Pritzker. In which they expressed concern about inexpensive Korean steel being in mass quantities imported here….
The United States is a political anomaly. Throughout time there has never been a nation so politically, culturally, and militarily dominant. Rome, even at its height, had rivals. So too did the British Empire, which at its apex made pretense to the rule of the waves, in spite of near constant challenges to its power from forces seeking to upset or supplant it. The international stability and peace created by these great empires, the Pax Romana and Pax Britannica, the Roman Peace and the British Peace, served in their times to guarantee security and relative prosperity within their spheres of influence. Yet they could never do so unchallenged.
Rarely do some of the nation’s most powerful politicians and businesspeople laud banks that report big profits when in fact they have lost billions of dollars. But we’re witnessing this spectacle on behalf of the Export-Import Bank of the United States, which for many decades, and for good reason, has been called by its critics “The Bank of Boeing.” Its charter expires September 30, and a battle over its possible extension is brewing between the political establishment and reformers.
Shortly, Congress will be debating the fate of the U.S. Export-Import Bank (Ex-Im). Its authorization — last extended in 2012 — will expire on September 30 unless reauthorized. Ex-Im was first incorporated in 1934 by President Franklin D. Roosevelt to finance trade with the Soviet Union. Under the Export-Import Bank Act of 1945, Congress established the bank as an independent agency. It provides loans and loan guarantees (as well as capital and credit insurance) to facilitate U.S. exports. Backed up by the full faith and credit of the U.S government, taxpayers are put on the hook.
It’s Tax Day in America. Which brings to mind one of the late, great Ronald Reagan’s many great lines: “Republicans believe every day is the Fourth of July, but the Democrats believe every day is April 15.”
or almost a century, since the end of the First World War in 1918, mankind has been in search of international order and global peace through the political method of international organization. However, instead of peace among men, the last one hundred years as seen almost unending wars, great and small. Maybe it is because men have looked for peace from government rather than from a rebirth of the philosophy of individualism and classical liberalism.
The United States and Japan are at the trade negotiation table – for the proposed Trans-Pacific Partnership (TPP). Absolutely excellent. The freer the trade the better – the more the merrier.