The Times Gets It Right on Globalization

By January 2, 2007Trade

As we noted below, we’ve had a little case of vacation-itis this week. Carter Wood had the temerity to take a few days off and the blogger’s apprentice is off donating cash to a northern indigenous tribe.

So forgive us for missing this excellent Christmas Day editorial from an unlikely source — the New York Times — on globalization. Rather than hand-wringing, they actually get it right in noting that trade creates jobs. “When they sell more overseas,” says the Times, “American businesses can employ more people.” Hey — think they’ve been reading ShopFloor?

The case in point for the Times is NAM member Boeing’s sale of sixty-seven 747’s, for a grand total of $16.75 billion. Says the Times, “…All of this benefits Boeing’s shareholders, the American economy and the nearly 150,000 people Boeing employs in the United States.” We would only add to this list the thousands and thousands of small manufacturers who serve as suppliers to Boeing as well, as we noted here a little while ago. They are all in the export game. Boeing is a company that buys almost 80% of its parts here — and builds the stuff right here — and exports 70% of its products around the world. That’s good for all the manufacturers in the Boeing food chain — and good for the US economy. “It is important to bear in mind,” the Times says, “just how much this country has benefited from free trade at a time when protectionist sentiment…is growing.”

The Times stumbles a bit at the end of its editorial (it can’t help itself), shedding its capitalist guilt with a misguided cry for more taxes, but still, for the Times, getting it 90% right is a great leap forward.

Lou, are you listening? Trade creates jobs, exports create jobs, trade agreements open markets to US-made goods. Just ask Boeing or all the “multinationals” who are Boeing’s suppliers.