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marmar

(77,102 posts)
Mon Apr 13, 2015, 11:00 AM Apr 2015

Fast Track to Lost Jobs and Lower Wages


Robert E. Scott
Director of Trade and Manufacturing Policy Research, Economic Policy Institute

Fast Track to Lost Jobs and Lower Wages
Posted: 04/12/2015 10:47 am EDT Updated: 1 hour ago


This week, Senator Hatch will reportedly introduce "fast track" (trade promotion authority) legislation in the Senate, to help President Obama complete the proposed Trans-Pacific Partnership (TPP), a trade and investment deal with eleven other countries in Asia and the Americas. "Fast Track" authority would allow the President to submit trade agreements to Congress without giving members of Congress the opportunity to amend the deal. Experience has shown that these trade and investment deals typically result in job losses and downward pressure on the wages of most American workers. The last thing America needs is renewal of fast track and more trade and investment deals rushed through Congress.

The administration has claimed that the TPP will create jobs, but it will not. There are other policies that have attracted bipartisan support, including ending currency manipulation and rebuilding infrastructure that could each create millions of U.S. jobs. President Obama has limited political capital to expend with the Republican-controlled Congress and he must choose his policies wisely.

Trade and Jobs?

For more than twenty years, both Democratic and Republican administrations have claimed that free trade agreements like the U.S. - Korea Free Trade Agreement (KORUS) and the North American Free Trade Agreement (NAFTA) would lead to growing U.S. exports and stimulate creation of goods jobs in the United States. Bill Clinton claimed that NAFTA would create 200,000 jobs in its first two years and a million jobs in five years. President Obama claimed that KORUS would "support 70,000 American jobs" because the agreement would "increase exports of American goods by $10 billion to $11 billion."

Claims that trade and investment deals would support domestic job creation have proven to be empty promises. Expanding exports alone is not enough to ensure that trade adds jobs to the economy. Increases in U.S. exports tend to create jobs in the United States, but increases in imports lead to job loss--by destroying existing jobs and preventing new job creation--as imports displace goods that otherwise would have been made in the United States by American workers. Thus, it is changes in trade balances--the net of exports and imports--that determine the number of jobs created or displaced by trade and investment deals like NAFTA and KORUS. .....................(more)

http://www.huffingtonpost.com/robert-e-scott/fast-track-to-lost-jobs-a_b_7042270.html




19 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Fast Track to Lost Jobs and Lower Wages (Original Post) marmar Apr 2015 OP
Oh, just stop it... TreasonousBastard Apr 2015 #1
If the treaty would actually do nothing, why do we need the treaty? (nt) jeff47 Apr 2015 #2
It doesn't do "nothing" it is... TreasonousBastard Apr 2015 #5
It reportedly also sets up a work around national courts for corporations HereSince1628 Apr 2015 #16
So you think we need to balance a country where we have a free trade agreement jeff47 Apr 2015 #17
Do we have a trade DEFICIT? aspirant Apr 2015 #3
Sure we do, and we'll have one... TreasonousBastard Apr 2015 #6
Will the trade deficit increase under TPP? aspirant Apr 2015 #8
It could, but there are so many things involved that no one knows yet. TreasonousBastard Apr 2015 #10
If it's so secret and complicated aspirant Apr 2015 #11
Transparent Obama Administration? Omaha Steve Apr 2015 #13
stop whining about tpp posts and deal with it marmar Apr 2015 #4
+1. What a bizarre rant that was - griping about others who gripe. closeupready Apr 2015 #7
When your dealing with a griper aspirant Apr 2015 #9
I guess so, lol. closeupready Apr 2015 #14
Take your medicine people. Even though it will probably make the working class less robust. stillwaiting Apr 2015 #12
Who cares if trade increases but the end result is more Americans in poverty. WillTwain Apr 2015 #15
Exactly. They're full of shit Populist_Prole Apr 2015 #18
They have no perspective on complex issues. The bottom line is jobs and wages. WillTwain Apr 2015 #19

TreasonousBastard

(43,049 posts)
1. Oh, just stop it...
Mon Apr 13, 2015, 11:47 AM
Apr 2015

Seems like most of the links in this guy's article go back to himself, with no supporting data.

One small bit of data he misses is that the US does over 2.5 TRILLION in exports annually, and that makes us third largest exporter on the planet--- behind China and the EU.

What about those exports? Do we just watch them disappear as jobs magically reappear because we will suddenly stop buying Chinese and Korean stuff?

I remember the same bullshit about Japan taking over the world but people still bought Toyotas and Nikons, and now they're making Toyotas here and Sony's world HQ is in Mahwah, NJ.

Trade exists, and even if we don't sign the TPP China will still sell stuff around the world, and to us, and we have to deal with it. This is one way of dealing with it.

Just stop whining that the TPP is the end of the world and deal with it.

TreasonousBastard

(43,049 posts)
5. It doesn't do "nothing" it is...
Mon Apr 13, 2015, 12:47 PM
Apr 2015

essentially setting up a trade bloc of everyone else on the Pacific besides China and Korea to balance the trading power of China and Korea.

Just a reaction to evolving trade patterns.

HereSince1628

(36,063 posts)
16. It reportedly also sets up a work around national courts for corporations
Mon Apr 13, 2015, 02:09 PM
Apr 2015

But then with the exception of leaks, it's mostly secret so what can we really presume to know?



jeff47

(26,549 posts)
17. So you think we need to balance a country where we have a free trade agreement
Mon Apr 13, 2015, 03:17 PM
Apr 2015
essentially setting up a trade bloc of everyone else on the Pacific besides China and Korea to balance the trading power of China and Korea.

Except you just cited our free trade agreement with Korea.

How is it "balance" that favors us when we already have an agreement with South Korea?

Just a reaction to evolving trade patterns.

Yes, there will be absolutely no domestic employment impact. Just like all our other free trade agreements that had absolutely no domestic impact.

And since you're gonna needs this:

TreasonousBastard

(43,049 posts)
6. Sure we do, and we'll have one...
Mon Apr 13, 2015, 12:51 PM
Apr 2015

with or without the TPP.

Nobody says a deficit is a good thing, or that this will solve it, but we insist on buying stuff made elsewhere.

Tried buying a US made camera or DVD player?

aspirant

(3,533 posts)
8. Will the trade deficit increase under TPP?
Mon Apr 13, 2015, 01:05 PM
Apr 2015

Could Vietnam, Malaysia and Brunei increase our exports by mega-billions or increase our deficits by mega-billions?

Aren't our trade deals suppose to help America and lower or solve our deficits? Why would the American people get involved with a trade deal that worsens our financial woes?

Hasn't our short-term trade deal with Korea resulted in further deficits?

Omaha Steve

(99,793 posts)
13. Transparent Obama Administration?
Mon Apr 13, 2015, 01:23 PM
Apr 2015

Nothing to see here. Move along!

K&R for continuing the discussion.

stillwaiting

(3,795 posts)
12. Take your medicine people. Even though it will probably make the working class less robust.
Mon Apr 13, 2015, 01:21 PM
Apr 2015

But, just shut about it will ya?

Seems to be the gist of your post.

The TPP apparently deals with trade issues in 5 of the 29 chapters, and it apparently deals with MANY different industries and areas of our lives. I don't think we're going to shut up and deal with it just yet.

Don't worry though. The TPP will probably pass, and then you can mock, laugh, and ridicule those of us who are spending energy trying to defeat it.



Populist_Prole

(5,364 posts)
18. Exactly. They're full of shit
Mon Apr 13, 2015, 03:41 PM
Apr 2015

I notice they always try to use vague abstractions that sound reasonable in theory but are harmful in practice.

I notice they at first try to BS us by claiming an increase in exports will shrink or eliminate the trade deficit; then when they're called on such pollyannic nonsense, they, with absolutely no demur glibly say the trade deficit doesn't matter. If it doesn't matter, why the sanguinity in the first place?

 

WillTwain

(1,489 posts)
19. They have no perspective on complex issues. The bottom line is jobs and wages.
Mon Apr 13, 2015, 03:47 PM
Apr 2015

Trade talk is for the rich not us. I do not care if we double trade, if every other American lives in a cardboard box. Who fucking cares? So, the rich get richer and we are supposed to party. My slave owners are richer than your slave owners so I got you. What the fuck is this pablum.

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