Bush Continues to Ignore What the American People Want in the Name of Corporate Profit…
A few days ago I posted on to this blog on recent developments in the Republican party in regards to globalism and free trade. In short, support among Republicans for free trade is ebbing…and quickly at that. However, president Bush once again seems to be rallying around a narrow minded ideology of trading American jobs and prosperity for profit, rather than listening to the cries of help from the middle class and his own party! Business as usual at the White House.
In the last six years, the Bush administration has signed 11 free trade agreements, including seven new agreements in Latin America, and in spite of the under current of opposition to new deals, is pushing new agreements with Peru, Colombia, and Panama. To defend his position, Bush argued just days ago that free trade is necessary because “More exports support better and higher-paying jobs — and to keep our economy expanding, we need to keep expanding trade.”
The problem is, these high paying jobs aren’t materializing.
Bush said these three agreements would lower agricultural and industrial tariffs on American businesses as well, while providing 75 million new consumers for American goods. Although the President acknowledged that many Americans are questioning free trade, he added that “the federal government is providing substantial funding for trade adjustment assistance that helps Americans make the transition from one job to the next.”
Another problem is, the program is filled with massive loopholes that make it almost moot to most Americans.
Link here for AFL-CIO congressional testimony regarding (TAA) loopholes.
In spite of all these outcries, the administration is currently working toward a new trade agreement with South Korea that will be closed to beef autos, and steel, according to analysts.
What Bush continues to struggle with is the fact that the very foundation of globalism and free trade, as well as the benefits that it was supposed to bring to this country, have been proved false. Globalists insist, as echoed by Bush, that free trade creates new jobs and keeps consumer goods cheap. Thus, free traders claim markets will continue to expand.
The opposite is happening.
Granted, some jobs have been created, but the jobs, according to the U.S. Department of Labor, are mainly service sector jobs that are not exposed to outsourcing, unlike manufacturing and high tech jobs that are. The caveat here, is that these service sector jobs pay up to 60% less than the manufacturing and high tech jobs that have been lost. The job creation is simply not an apples to apples comparison, and that fact is conveniently left out of free trader dialog. Also, many college graduates are finding it difficult to find gainful employment than even warrants going to college or justifying the ever increasing tuition costs and student loan interest rates, which this administration has allowed to sky rocket.
Simply put, Republicans cannot and traditionally have not been able to manage the economy. Unfortunately, we have been at the mercy of Reagan and two Bush’s – all big time spenders, all incompetent in the area of macro economics and trade policy. If you look at economic records and rates of job creation and unemployment going back to Harry Truman, the data proves this out. During Carter’s administration for example, the economy added 10 million jobs and reduced government spending, all in the face of high inflation. George H.W. Bush holds the dubious honor of having both the poorest GDP growth and income growth for working class Americans on record. The deficit also exploded by $100 billion in only four years. Bush Jr. is even worse than daddy.
The economy is the worst it has ever been under the current president. The Bush administration’s annual loss stands at three-quarters of a trillion dollars and he has only managed a net gain of 5.6 million jobs – the worst ever. The numbers of ‘working poor’ and unemployed are creeping up as well, while the income gap between the rich and poor is the widest it has been since the 1920’s – great for lords at the top, not so much for the serfs at the bottom. The trade deficit with China speaks for itself.
So, what does it all mean? On a macro level, it means our current policies are not working. Short-sighted conservative corporate fat cats are gutting the economic fish for a seemingly final meal. Real economic growth comes from the bottom – via a thrifty working class that is able to save and rely on affordable health-care, guaranteed retirement, and reasonable consumer prices. Free trade was supposed to provide all of this. Instead, we have gotten currency manipulation from China, higher prices on essential goods like home energy, garbage consumer products, trade deficits, an insurance crisis, an evaporating manufacturing and high tech sector, and a cash strapped middle class who cannot even escape the crunch through re-education, because there’s nothing to re-educate to. And then when you’re in your senior years, you get to coast to the finish line with a reverse mortgage. All of this smells to me.
Can someone explain this to Bush please…and Robert Reich while you’re at it?
Posted on October 13, 2007, in Economic Policy, Free Trade, George Bush, Globalism, Politics and tagged anti-free trade, anti-globalism, China, corporate greed, cosumer prices, Economic Policy, Free Trade, George Bush, Globalism, jobs, loss of jobs, middle class squeeze, Politics, repubican against free trade, trade deficit. Bookmark the permalink. Leave a comment.