Thursday, November 06, 2008
More Wishful Thinking
In a bold departure from campaign rhetoric aimed at comforting disaffected rust-belt voters, Mr. Obama is now able to affirm his commitment to free trade and the process of globalization. Importantly, informed by his University of Chicago and Harvard-based economic advisers, he has underscored his support for the North American Free Trade Agreement, to the great relief of our most important trade partners to the North and the South. In backing away from his threat to unilaterally back out of NAFTA, Mr. Obama is citing the fact that the overall value of trade between the U.S., Canada and Mexico has more than tripled to $930 billion in the years since the Treaty was put into place. Trade with NAFTA partners now accounts for more than 80% of Canadian and Mexican trade, and more than a third of U.S. trade. More importantly, he notes that all of the evidence suggests that U.S., Mexican, and Canadian gross domestic products have grown as a result of the NAFTA Treaty. Mr. Obama points out that real hourly compensation in the U.S. business sector has risen 19.3% over the period from 1993-2007, suggesting that NAFTA may not have suppressed U.S. wages as alleged by its critics. To further underscore his commitment to free trade and take a swipe at the special interest politics of the past, Mr. Obama has moved aggressively to remove absurdly costly protections for ethanol production and opened the door to ethanol imports from emerging markets like Brazil. And the American people, relieved to have real leadership at last, are easily convinced that removing huge subsidies to corn growers in the U.S. will help ease the distortions in the worldwide market for basic food stuffs. Given the profound weakness in the economy, Mr. Obama has backed away from his promises to increase taxes on the returns on human capital (his redistributive tax on the top 2% of earners), and on physical capital (capital gains, dividends and corporate profits). He recognizes that what we need is more investment in all these forms of capital to stimulate the economy, and that private investment is the best way to achieve it. Indeed, recognizing that the key to the future prosperity of the U.S. economy is--as it has always been--rising productivity driven by innovation, Mr. Obama has announced new immigration policies that will open America's doors to talented workers to meet the needs of American companies--something that Bill Gates and other great innovators have been urging for many years.Quite a dream.
3 Comments:
By 
, at
Thu Nov 06, 05:22:00 PM:
Rahn Emanuel better have a couple of twin brothers if Obama thinks the Democratic Congress and assorted fiefdoms would accept this.
I doubt he'd risk his early political capital on his own party.
By , at
Thu Nov 06, 05:28:00 PM:
The impossible dream...all these Obama voters hoping for a free trade, rational tax economic policy are smoking dope.
By 
THEMICK7, at
Thu Nov 06, 06:31:00 PM:
We have a difference of opinion on ethanol.Maybe THE MESSIAH did a con job on Forbes...YA KNOW LIKE THE ONE HE PULLED ON THE ELECTORATE.
Obama to Back Ailing Ethanol Makers, Follow Failed Bush Policy
http://www.bloomberg.com/apps/news?pid=20601207&sid=a2QOK2ttty_I&refer=energy
