Saturday, September 17, 2011

The Best "Jobs Bill" May Really Be Trade Reform

Food for thought:

"Foreign producers receive subsidies, tax abatements, free buildings, free energy.  They do not pay taxes.  They don't have to pay Social Security, workman's comp, disability or health care.  They don't have to match a 401(k) contribution.  They are able to avoid more than 100 years of of government regulations put on American businesses.  OSHA does not exist in most developing nations.  They use electricity that would never be allowed to be generated in the United States due to lack of pollution controls.  The U.S. Environmental Protection Agency employs 17,000 workers.  China's state environmental protection administration employs only 300."

R. McCormack, Manufacturing a Better Future for American (2009).

Economists Glenn Hubbard (Columbia U.) and Peter Navarro (U.C. Irvine) in their excellent book Seeds of Destruction make the case that the trade deficit is a major impediment to job creation in the United States.

According to Hubbard and Navarro's research, the trade deficit began in 1992, and beginning in 2000, it more than doubled in that decade of the 2000's.  

Although one party touts government spending as the solution to jobs creation, and the other party wants to cut taxes, neither one has any plan to balance trade in the international economy.

Why is that?

DWIGHT EDWARD TOMPKINS
Estate Planning Attorney

California Family Trusts 

This blog is intended as information only and is not a substitute for legal advice from a qualified attorney in your jurisdiction.

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