Bush's "Ownership Society" Already Doomed by his Trade Policies

AmericanEconomicAlert.org ^ | Friday, September 10, 2004 | Alan Tonelson

[Willie Green]

White House Projects Highest Deficit Ever
FEDERAL DEFICIT REALITY-U.S. Treasury Shows Actual 2003 Federal Deficit at $3.7 Trillion
Foreigners own half US debt, tipping point unclear

[Willie Green]

ping

[american spirit]

I think I read somewhere that the fedgov's "unfunded liabilities" is in the area of 60-70 Trillion at this time. Is that a realistic amount and do you know what's included in those figures?

[Non-Sequitur]

In other words, tax cuts and privatization can´t drive U.S. economic policy unless the United States retains, or rebuilds, a meaningful tax base. If President Bush knows how to do this without reversing his outsourcing-centered trade policies, now´s the time to tell us. But that´s unlikely unless his opponents start asking him.

This more than anything else could hand the White House to Hillary in 4 years.

[Willie Green]

Is that a realistic amount

It depends on how far out into the future they try to project.
I'm not familiar with the source of your figures, but judging from the magnitude, I'd guess that somebody is trying to forecast what's gonna happen 20~25 years from now. IMHO, that would make the figures too uncertain to be reliable. Nevertheless, it would be the best guess we could make under present conditions.

[familyop]

Tariffs and duties like those against Canadian lumber prevent US Americans from owning their own homes. So does the monstrous volume of lumber sales from the US to China and Iraq (Iraq: where it's more sensible to use concrete anyway). "Sustainable development" programs (usually in partnership with the largest developers) also go against Americans owning their own homes, as do some zoning regulations and other "gatekeeping" methods.

[TXnMA]

Having fun today, WillieJoe?

[sarcasm]

The United States - the newest third-world country.

[DoughtyOne]

Willie, over the years you and I have agreed more times than not. I appreciate the articles you post, keeping some matters that are important to me, front and center.

For me, the time has come to get behind Bush and make sure he gets re-elected. While I have some MAJOR differences with Bush, he is still greatly preferable to John Kerry, and the fact is one of them will wind up president.

I won't be harping on Bush's shortcomings for the next couple of months. I have something in mind for just after the election, but for now I'm going to back off.

Knowing me as you do, I'm sure you realize I haven't changed my mind on any issues.

I just don't want to provide cover for people who might get discouraged and stay home on election day.

You take care. I'll rejoin you after the election.

All the best.


D1

[raybbr]

Is that the best response you have a logical and well-reasoned post?????

[A. Pole]

But the biggest obstacle to the ownership society is the steady stripping from Americans of the resources needed to buy control over their lives. And one of the biggest forces behind this worsening incapacity is a trade policy designed to plunge Americans into competition with much lower-paid third world workers, and drive down domestic wages and salaries in the process.

Free trade bump!

[sinkspur]

Luddite bump.

[Erik Latranyi]

But the biggest obstacle to the ownership society is the steady stripping from Americans of the resources needed to buy control over their lives. And one of the biggest forces behind this worsening incapacity is a trade policy designed to plunge Americans into competition with much lower-paid third world workers, and drive down domestic wages and salaries in the process.

If we do not compete with these lower-paid third world workers now, when will we? When they are so strong and our industries so weak (from complacency) that we get rolled over?

The biggest problem I have with the above is that they offer no real alternative. Protectionism will result in our economic demise as surely as a withdrawl from the arena of foreign policy.

Compare economic competition to military preparedness. If your troops have the most sophisticated, specialized weapons in the world but have never trained on how to handle guerilla tactics, you will repeat VietNam.

That is why we must compete with low-cost workers worldwide---keep our industries sharp and innovative so our economy stays strong.

[A. Pole]

If we do not compete with these lower-paid third world workers now, when will we? When they are so strong and our industries so weak (from complacency) that we get rolled over?

What "we"? Are you talking about American workers who are to lower their wage expectations and standard of living to match the Third World levels?

[RFT1]

The problem with this is the bulk of the American working class wont stand for this over a period of time. Sooner or later, as long as these trends persist, the rank and file in the US will vote in polictians that will vow to protect them, and not only this means trad barriers, but a social democracy cradle to grave programs such as socialised health care. Like it or not, the period between 45 and the 70s is what Americans will allways compare their financial situation to.

[bvw]

I think thinking changes. I'm sure Bush's mind changed in that grade school room on Florida. Let's give him a chance ...

[sixmil]

All true. I remember back when people got laid off, they just went and got another job. Now they go and collect unemployment. The neo conservatives would have you believe that people are getting lazy, but come on, really.

[ARCADIA]

That is why we must compete with low-cost workers worldwide---keep our industries sharp and innovative so our economy stays strong.

Strong industries are built on creativity and innovation. It takes stable and long product life cycles to garner the necessary investment in time and capital. Cheap production only serves to creates a stagnant deposible economy. The money squandered moving assembly lines around the planet could have been used to develop tremendous and highly competitive product developments.

[Havoc]

EDS just announced earlier this week that they will outsource another 20,000 jobs over the next two years earlier this week.
Now that it looks as though Bush has this thing wrapped up, looks like it's safe for businesses to plan for an environment in which it's ok to sell out American workers for profit.