Hillsdale Prof. Burt Folsom: " Let Them Eat Cake–But Only If It Is Baked Locally"

BurtFolsom.com ^ | 10/04/10 | Prof. Burt Folsom

[Basher53]

The rediscovery of the Constitution and of the value of free markets is possibly the most exciting political trend of the last two years. But there is a cockroach in the cream: Americans are, as the Wall Street Journal put it today, “sour on trade.” Fully 53 percent of Americans, according to the WSJ/NBC poll, believe that free-trade agreements have hurt the U. S. Only 32 percent believed that in 1999.

Of course, current trade agreements could stand improvement, but such a trend toward protectionism is alarming. And the Democrats are trying to score points with protectionist rhetoric in the current election campaigns with the cry that corporations are “shipping jobs overseas.”

Three points are in order. First, growing corporations often expand to new markets overseas. Ray Kroc, for example, the CEO of McDonalds, put at least one of his hamburger joints in almost every county seat on the map. Then he took the profits and went to Europe and all continents except Antarctica. That was a natural process of growth. Thus, overseas expansion can be a fruitful part of corporate expansion and helpful to American corporations.

[utherdoul]

I believe strongly in free trade. Therefore we should have tariffs exactly equal to those we trade with. If someone levies a 100% tariff on our goods we should return the favor.

[Da Coyote]

Agree. Our trade policies with each country should be a reflection of their trade policy.

Just as our immigration policy with each country should be a reflection of their immigration policy.