GET YOUR FACTS STRAIGHT!! That's really my biggest message to all candidates. I reiterate my point made multiple times on this blog -- let the markets work.
There is so much banter about how Michigan's lost manufacturing jobs is bad for the economy. In fact it is NOT. Manufacturing productivity has grown enormously over the past decade. Employment has fallen, but output has risen.
The problem we are now encountering is a lack of education - if we are to continue to prosper the entire population MUST be better educated. There would no problem whatsoever with employment decreases in manufacturing IF the country was prepared to be employed in the most important industries of today--high tech and others.
On another note: Tom Tancredo is a little off -- TRADE IS GOOD.
There may be more on this debate when I back from class.
Tuesday, October 9, 2007
Friday, October 5, 2007
Free trade is bad?
First off, no. Free trade is great. The manor in which we approach free trade is somewhat questionable. NAFTA, CAFTA, the WTO, and other agreements certainly have improved the flow of trade. However, they still represent government interference in global free trade - eliminating all tariffs and allowing market forces to truly set prices.
Today, the Wall Street Journal had a 'Page One' article entitled "Republicans Grow Skeptical On Free Trade." In the article were some disturbing figures - 54% of Democrats have called Free Trade Agreements bad. And the Journal continued by saying that 59% of Republicans call 'foreign trade' bad. The problem with trade is the manufacturing and other jobs that are moved overseas. WAKE UP PEOPLE! The reality is that because of new technology and other improvements, manufacturing has seen greater output with fewer employees. That means while there are fewer manufacturing jobs, goods produced are cheaper. Never mind the fact that there are thousands of new service jobs created every month.
In addition, the income gap is a concern among most Americans. If we open our borders to allow more highly skilled workers, we could actually lower the average wage of the highest paid individuals and possibly raise the wage of the lowest paid individuals. How's that for social welfare!
Markets, when unconstrained, will actually resolve many of the problems we think they create.
Today, the Wall Street Journal had a 'Page One' article entitled "Republicans Grow Skeptical On Free Trade." In the article were some disturbing figures - 54% of Democrats have called Free Trade Agreements bad. And the Journal continued by saying that 59% of Republicans call 'foreign trade' bad. The problem with trade is the manufacturing and other jobs that are moved overseas. WAKE UP PEOPLE! The reality is that because of new technology and other improvements, manufacturing has seen greater output with fewer employees. That means while there are fewer manufacturing jobs, goods produced are cheaper. Never mind the fact that there are thousands of new service jobs created every month.
In addition, the income gap is a concern among most Americans. If we open our borders to allow more highly skilled workers, we could actually lower the average wage of the highest paid individuals and possibly raise the wage of the lowest paid individuals. How's that for social welfare!
Markets, when unconstrained, will actually resolve many of the problems we think they create.
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