The Left Is So Wrong On Trade

flag USMy Comments: When I first heard about the TPP (Trans-Pacific Partnership) and understood the broad outlines of the idea, I had no problem with it. Then along came Robert Reich, someone whose intellect I respect, saying it was terrible and should be scuttled. So I started looking a little closer, mindful I didn’t have access to the actual language.

The issue has now given the GOP another imaginary arrow to put down the White House. To my mind, Elizabeth Warren and Bernie Sanders are a breath of fresh air, but are pandering to their base just like Ted Cruz is pandering to his base. I’ve concluded, as an economist and financial professional, that it will be, on balance, a good thing. Does it have flaws? Most certainly. Should they be fixed? Maybe.

The 21st Century is evolving rapidly, and there will be unintended consequences, but to argue that not advancing the TPP will somehow miraculously result in jobs returning the US is nuts. Maybe some CEOs will make hundreds of millions; so what? My professional gut tells me the left has overlooked the benefits and the real chance to boost economic growth in this country, in a way that has to happen. They are just as fixated on their personal bias as are those on the right.

May 14, 2015 / Froma Harrop

The left’s success in denying President Obama fast-track authority to negotiate the Trans-Pacific Partnership is ugly to behold. The case put forth by a showboating Sen. Elizabeth Warren — that Obama cannot be trusted to make a deal in the interests of American workers — is almost worse than wrong. It is irrelevant.

The Senate Democrats who turned on Obama are playing a 78 rpm record in the age of digital downloads.

Did you hear their ally, AFL-CIO head Richard Trumka, the day after the Senate vote? He denounced TPP for being “patterned after CAFTA and NAFTA.” That’s not so, but never mind.

There’s this skip on the vinyl record that the North American Free Trade Agreement destroyed American manufacturing. To see how wrong that is, simply walk through any Walmart or Target and look for all those “made in Mexico” labels. You won’t find many. But you’ll see “made in China” everywhere.

Many of the jobs that did go to Mexico would have otherwise left for low-wage Asian countries. Even Mexico lost manufacturing work to China.

And what can you say about the close-to-insane obsession with CAFTA? The partners in the 2005 Central American Free Trade Agreement — five mostly impoverished Central American countries plus the Dominican Republic — had a combined economy equal to that of New Haven, Connecticut.

(By the way, less than 10 percent of the AFL-CIO’s membership is now in manufacturing.)

It’s undeniable that American manufacturing workers have suffered terrible job losses. We could never compete with pennies-an-hour wages. Those low-skilled jobs are not coming back. But we have other things to sell in the global marketplace.

In Washington state, for example, exports of everything from apples to airplanes have soared 40 percent over four years, to total nearly $91 billion in 2014, according to The Seattle Times. About 2 in 5 jobs there are now tied to trade.

Small wonder that Sen. Ron Wyden, a liberal Democrat from neighboring Oregon, has strongly supported fast-track authority.

Some liberals oddly complain that American efforts to strengthen intellectual property laws in trade deals protect the profits of U.S. entertainment and tech companies. What’s wrong with that? Should the fruits of America’s creativity (that’s labor, too) be open to plundering and piracy?

One of TPP’s main goals is to help the higher-wage partners compete with China. (The 12 countries taking part include the likes of Japan, Australia, Canada, Chile, Mexico, and New Zealand.) In any case, Congress would get to vote the finished product up or down, so it isn’t as if the public wouldn’t get a say.

But then we have Warren stating with a straight face that handing negotiating authority to Obama would “give Republicans the very tool they need to dismantle Dodd-Frank.”

Huh? Obama swatted down the remark as wild, hypothetical speculation, noting he engaged in a “massive” fight with Wall Street to get the reforms passed. “And then I sign a provision that would unravel it?” he told political writer Matt Bai.

“This is not a partisan issue,” Warren insisted. Yes, in a twisted way, the hard left’s fixation over big corporations has joined the right’s determination to undermine Obama at every pass.

Trade agreements have a thousand moving parts. The U.S. can’t negotiate with the other countries if various domestic interests are pouncing on the details. That’s why every president has been given fast-track authority over the past 80 years or so.

Except Obama.

It sure is hard to be an intelligent leader in this country.

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One thought on “The Left Is So Wrong On Trade

  1. sasflo

    Absolutely correct, Tony.

    From: “Tony Kendzior, CLU, ChFC” Reply-To: “Tony Kendzior, CLU, ChFC” Date: Friday, May 15, 2015 at 8:23 AM To: Steve Saker Subject: [New post] The Left Is So Wrong On Trade

    WordPress.com Tony Kendzior – Investment Advisor posted: “My Comments: When I first heard about the TPP (Trans-Pacific Partnership) and understood the broad outlines of the idea, I had no problem with it. Then along came Robert Reich, someone whose intellect I respect, saying it was terrible and should be scuttl”

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