I believe it is time to question the benefits of globalization. We were told that globalization would benefit all nations. Sure, maybe in the short term but in long term and sustainability globalization may not be the answer.
I am not advocating "protectionism". Frankly, I am not sure what am advocating right now. But I know this: globalization has not been the "win-win" that "free trade" proponents have argued.
Globalization is not sustainable because it supports a downward pressure on wages and encourages and requires insatiable consumption of resources and cheap consumer goods. But the financing of the consumption, particularly by consumers, is not by higher incomes but by higher amounts of debt. Globalization may only lead to more "boom/bust" cycles in the future.
January's trade statistics are out and imports dropped 22.8% while exports dropped 16.4%. So, a ring of good news, our trade deficit dropped. But the bad news: U.S. exports have dropped 44% on a yearly scale. From the BEA:
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total January exports of $124.9 billion and imports of $160.9 billion resulted in a goods and services deficit of $36.0 billion, down from $39.9 billion in December, revised. January exports were $7.6 billion less than December exports of $132.5 billion. January imports were $11.5 billion less than December imports of $172.4 billion.
Public citizen live blogged the USTR (United States Trade Representative) confirmation hearing of Ron Kirk.
Here's a classic quote:
Senator Ron Wyden: the middle class does not like these trade agreements. What do you plan to increase support of middle class?
Ron Kirk's Reply: We're going to utilize technology to tell the real story. Our website is "so" 1987.
America knows these trade agreements are glorified offshore outsourcing contracts and the response is to do better Internet PR?
Another Quote from Mr. Kirk:
Cheaper foreign products help hard pressed American families, and exports help create jobs. The overarching benefits of trade are diffuse, and the pain is concentrated.
Supposedly today the USTR office of the Obama administration is releasing a new trade policy agenda. Bloomberg is reporting:
President Barack Obama plans to ask Congress to approve a long-delayed free-trade agreement with Panama and establish “benchmarks” so that accords with South Korea and Colombia can be ratified in the future, a report said.
In its first annual report on trade policy, the Obama administration also said that it plans to ask Mexico and Canada to rework provisions of the North American Free Trade Agreement.
“If we work together, free and fair trade with a proper regard for social and environmental goals and appropriate political accountability will be a powerful contributor to the national and global well being,” said the report, which was released by the U.S. Trade Representative’s office.
Well today Obama went to Canada and of course said nothing about our massive trade deficits with Canada or Mexico, instead saying we don't want to be that canard protectionist word.
"Now is a time where we have to be very careful about any signals of protectionism," Obama told a joint news conference after several hours of talks with Harper on his one-day visit to Ottawa.
"And as obviously one of the largest economies in the world, it's important for us to make sure that we are showing leadership in the belief that trade ultimately is beneficial to all countries," he said.
He stressed the United States would meet its international trade obligations and told Harper he wanted to "grow trade not contract it."
The Economic Policy Institute has quite the informational reality check on precisely why Catepiller, GE and the U.S. Chamber of Commerce are working so hard to strip from the Stimulus anything which remotely....creates jobs in America:
Robert Cassidy, the Clinton USTR has confessed before on his doubts about the promise of the WTO and the China PNTR, but now he as given more details during a talk at the Economic Policy Institute.
Boy, I'm not impressed. Obama has chosen Ron Kirk as the U.S. trade representative.
As a past supporter of the North American Free Trade Agreement (NAFTA) and China Permanent Normal Trade Relations (PNTR), Kirk will face close scrutiny as he assumes the responsibility for delivering on Obama’s pledges to fix existing trade agreements and create a new trade policy that benefits more people
Left Labor gets sold out by the Clintonite Democrats again.
President-elect Barack Obama's pick for commerce secretary, Bill Richardson, got a warm welcome Thursday during a visit to Mexico, where government officials said they doubted Obama would follow through on a campaign pledge to re-negotiate NAFTA.
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