Why Free Trade Works for America

The Heritage Foundation ^ | April 16, 2007 | Daniella Markheim, "traitor."

[1rudeboy]

• The average U.S. tariff rate on all goods has fallen from over 19 percent in 1933 to 1.8 per­cent in 2004.
  
• As a percentage of GDP, the importance of trade in the economy has climbed from single digits in the 1930s to nearly one-quarter of U.S. GDP in 2004.
  
• At the same time that trade has become freer, real per capita GDP in the U.S. (in constant 2000 dol­lars) has climbed from a low of $5,061 in 1933 to about $36,000 in 2004.

[Dick Bachert]

Of course, all that CHINESE MELAMINE in the pet food — and NOW SOME HUMAN FOOD — is just an added bonus.

Can’t wait to see what’s next from the Wide World of Globalism and FREE TRADE.

[1rudeboy]

Kinda’ like saying free(r) access to handguns causes crime, no?

[raybbr]

With free trade agreements (FTAs) with Peru, Colombia, Panama, and South Korea needing con­gressional approval; Trade Adjustment Assistance up for renewal; the struggle to advance multilateral trade talks in the World Trade Organization (WTO); and, critically, the need to extend the President's trade pro­motion authority (TPA) this summer, policymakers have ample opportunity to implement a more protec­tionist policy stance or to stay the course and con­tinue to allow America to reap the benefits of open market policies.

Are we operating under unknown pretenses? Free trade would mean no restrictions whatsoever. As long as governments get involved there is no such thing as free trade - just agreements that put America at a disadvantage.

[Dick Bachert]

Forgot to mention that all that increase in GDP will be needed to pay for added MEDICAL COSTS and FUNERALS due to the POISONINGS.

And I’m sure the ABA is licking it’s well-fed (with only the very best U.S. produced foodstuffs) chops about the fees flowing from the pending lawsuits.

[HarmlessLovableFuzzball]

Free trade forces Americans to get off their butts and be creative. Being dependent upon a corporation for a job is only slightly better than being dependent on the govt for a handout.

[1rudeboy]

Thanks, Capt. Obvious.

[raybbr]

Oh, so you finally agree that all these “free trade” agreements are putting America at a competitive disadvantage.

[1rudeboy]

Seeing that the entire paper I posted above argues otherwise, I think not. Try reading an op once in a while before commenting.

[spikeytx86]

I agree that Free Trade is the way to go. But we also should not allow our selves to be screwed either. We have done nothing about Chinese manipulation of currency or the high tariffs India places on our goods. I am all for free trade, I just think we should demand our trading “partners” do the same.

[lewislynn]

Sorta like saying there's little to no inflation when you take energy and food prices out of the equation...DUH!

I noticed there wasn't one word about importing oil.

Isn't the call for eliminating the dependency on foreign oil a call for a "protectionist" act? Why is it freetraders are such hypocrites when it comes to dependency on foreign oil?...Or maybe you America haters think foreign oil dependency is also good for us.

[1rudeboy]

Sorta like saying there's little to no inflation when you take energy and food prices out of the equation...DUH!
You're going to have to elaborate on this one. It's almost a perfect non sequitur. I was remarking on the argument that freeing something up leads to abuse.

I noticed there wasn't one word about importing oil.
Brilliant! Explain the "hypocrisy" of me wanting to open-up ANWR for drilling, and being a "free-trader."

[gas0linealley]

If “Free Trade” is such a good thing for America, why are we running a continual trade imbalance?

[1rudeboy]

Because we're wealthy, and we buy lots of stuff (including imported oil, as lewislynn points out)? What do I win?

[gas0linealley]

What you win is the opportunity to tell us precisely how you, personally, profit from US exports.

[Malesherbes]

3.2 million factory jobs in the US have been lost since 2000 (that’s one of every six.) Electronic components for our “smart bombs” are imported from China. What’s not to like?

[1rudeboy]

Manufacturing jobs have been declining world-wide for more than thirty years. If we don’t want to purchase Chinese components for smart bombs (I know I don’t want to), we should tell our defense contractors not to do so. We don’t have a FTA with China, anyway.

[det dweller too]

The problem with "free trade" is that it isn't free. somebody pays! And right now the people paying are American citizens with domestically based businesses. Their businesses have a between 25% and 50% cost embedded in their business by our income tax system. It's like two people in a race, one person has to carry another 30% of his weight in a knapsack while the first only has to carry a tee shirt.

If you want fair trade as well as the mentioned advantages of free trade, change the taxing point from income to products. A product brought to market here will have the same tax in it regardless of its point of origin. People making products domestically will then be able to compete with foreign sources. Also, removing the yoke of income tax from our collective necks will free up billions currently wasted in the costs of forecasting, calculating, recording, collecting, tracking, managing, policing and disbursing income taxes.

[RightWhale]

Free trade would mean no restrictions whatsoever

This is the common myth. This is what the average person would probably think before educating himself. Reality is the opposite: only a regulated market can possibly be free.