Free trade is working. We run a huge huge deficit and send lots of money out of the country. Politicians of both parties spend money they do not have as to buy their incumbency. Not to worry, the money that we sent out of the country comes back in the country when it is parked in government securities created to finance the debt. The money we send out comes back, thanks to the wisdom of the politicians who keep spending money we do not have, but not only are they buying their incumbency with the people’s money they do not have, they are giving are enemies the safest place on earth to park their money. This system works like a well oiled machine. What is all the fuss about?
"...Ninth, we’re in the middle of one of the greatest economic eras ever. Global poverty has declined at astounding rates. Globalization boosts each American household’s income by about $10,000 a year. The U.S. economy, despite all the bad-mouthing, is chugging along. Thanks to all the growth, tax revenues are at 18.8 percent of G.D.P., higher than the historical average. The deficit is down to about 1.5 percent of G.D.P., below the historical average.
"All of this is not to say everything is hunky-dory. Inequality is obviously increasing. There’s evidence that global trade is producing more losers.
"...Instead, the main point is that the Democratic campaign rhetoric is taking on a life of its own, and drifting further away from reality. Feeding off pessimism about the war and anger at Washington, candidates now compete to tell dark, angry and conspiratorial stories about the economy.
I doubt there’s much Republicans can do to salvage their fortunes by 2008. But over the long term a G.O.P. rebound can be built by capturing the Bill Clinton/Democratic Leadership Council ground that the Democrats are now abandoning. Whoever gets globalization right will have a bright future, and in the long run, the facts matter