Trade Policy as a Non-Inflationary Stimulus

By December 6, 2009Trade

ABC News’ “This Week” featured a pundit panel discussion this morning on the President’s jobs forum and his upcoming speech on the economy. Notable passage from Richard N. Haass, President of the Council on Foreign Relations.

HAASS: But there’s also an area where working Americans — in some cases, represented by organized labor — are not on the side of working Americans, because what’s missing from this entire jobs debate is trade. The single biggest engine of American job creation is trade policy, is export promotion, and where are we? We don’t have a positive trade policy. This is the best way to have non-inflationary stimulus that doesn’t break the budget, it doesn’t cost us a dollar. Let’s start negotiating in earnest a global free trade agreement…

Or at least by enacting the pending U.S. free trade ageements with Colombia, Panama and Korea.


Join the discussion One Comment

  • The only reason exports are so important is that we allowed cheap imports to kill production for domestic consumption. Instead of more free trade, we need tariffs to stimulate domestic production for domestic consumption. I know – prices will go up – but at least people will have jobs so that they can afford to buy SOMETHING.

    The polar case of free trade is one guy with a job and everything he buys costs a penny. Why that would be a good thing is not clear to me, and neither is why a trend in that direction is any better.

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