Bush, Obama, and Trade Wars

Nick Gillespie | September 15, 2009

Political scientist Dan Drezner on the differences between Bush and Obama when it comes to trade wars: 

When the Bush administration did what it did, it was fulfilling a campaign promise to the state of West Virginia steelwokers.  Fortunately, the rest of Bush's winning political coalition was not seeking trade relief.  So the protectionist instinct pretty much ended with the steel tariffs—and everyone in the Bush administration knew that they'd be overturned by the WTO eventually.

With the Obama administration, however, this feels like the tip of the iceberg.  Most of Obama's core constituencies want greater levels of trade protection for one reason (improving labor standards) or another (protecting union jobs).  This isn't going to stop. "Trade enforcement" has been part and parcel of Obama's trade rhetoric since the campaign.  The idea that better trade enforcement will correct the trade deficit, however, is pure fantasy.  It belongs in the Department of Hoary Political Promises, like, "We'll balance the budget by cracking down on tax cheats!" or "By cutting taxes I can raise government revenues!"  It.  Can't.  Happen. 

If I knew this was where the Obama administration would stop with this sort of nonsense, I'd feel a bit queasy but chalk it up to routine trade politics.  When I look at Obama's base, however, quasiness starts turning into true nausea.

Whole thing, at Foreign Policy, here.

Comments

|9.15.09 @ 1:19PM|#

When are the Democrats going to stop making racist appeals to nativist workers?

!|9.15.09 @ 1:39PM|#

Can't we all just get a loan?

|9.15.09 @ 1:44PM|#

Inefficiency: our leading export.

Gilbert Martin|9.15.09 @ 2:07PM|#

Obama is playing with fire by risking a trade war with China in order to appease his labor union political constituency.

Ever increase percentages of Chinese exports are going to other Asian countries and to the European Union.

Meanwhile we are becoming ever more dependent on them to finance our debt. And they control virtually the entire world' production of certain rare earth metals that are needed for electric and hybrid cars and wind turbines - all part of the "green jobs" revolution that is supposed to make us so energy independent and all.

|9.15.09 @ 2:10PM|#

Most of Obama's core constituencies want greater levels of trade protection. . . .

If this isn't a racist "dog whistle", I don't know what is.

Ike|9.15.09 @ 2:12PM|#

"By cutting taxes I can raise government revenues!"

I thought this was the case...

Queasy Modo|9.15.09 @ 2:15PM|#

When I look at Obama's base, however, quasiness starts turning into true nausea.

Don't blame Nick for this one.

Invisible Finger|9.15.09 @ 2:18PM|#

Meanwhile we are becoming ever more dependent on them to finance our debt.

And they're dependent on us to keep their sheeple employed.

Protectionism is a stupid idea, but I think this tire tariff is a trial balloon.

|9.15.09 @ 2:19PM|#

Ike: Indeed. It has happened, though it's not a sure thing.

|9.15.09 @ 2:22PM|#

One of the problems is not the tire tariffs per se, but that the unions view it as "the president's first down payment on his promise to more effectively enforce trade laws".

Of course, we'll see.

Gibert Martin|9.15.09 @ 2:40PM|#

"And they're dependent on us to keep their sheeple employed."

Not as much as they used to be. As I said, increasing percentages of their exports are going elsewhere.

|9.15.09 @ 2:45PM|#

The US is one of only 3 countries that China is a net exporter to and the US makes up 99% of that volume. Also, keep in mind that if Wal-Mart were a country, it would be China's #8 trading partner.

Warty|9.15.09 @ 2:57PM|#

"We'll balance the budget by cracking down on tax cheats!"

I want to keep my money
and give away absolutely nothing
to the government who moderates my spending
and obliterates depending on what time of the year
brutality is near

in the form of income tax
I'd rather take a fucking axe
to my face, blow up this place

with you all in it, I'd do it

If I could write off your murder
I'd save all of my receipts
because I'd rather you be dead
than lose a tiny shred of what I
made this fiscal year

I'd rather you be dead than ponder
parting with my second home
I'd rather you be dead than consider
not opening a restaurant

I'd rather you be dead
I'd rather you be dead

Prepare the laser-beam
I'm gonna use it tonight

Engage the laser-beam
It's gonna end your life

I'm gonna use it tonight

If I could write off your murder
I'd save all of my receipts
because I'd rather you be dead
than lose a tiny shred of what I
made this fiscal year

I'd rather you be dead than ponder
parting with my second home
I'd rather you be dead than consider
not opening a restaurant

|9.15.09 @ 2:58PM|#

The US is one of only 3 countries that China is a net exporter to and the US makes up 99% of that volume.

[citation needed]

The Chinese say we are their second-ranked trading partner and account for 12.9% of their trade. Of course, that total (import/export), but I find it hard to believe that we make up 99% of their export market.

|9.15.09 @ 3:30PM|#

Pat Buchanan's column today applauds Obama's stance.

The Universe is more strange and fucked-up than we can possibly imagine.

|9.15.09 @ 4:14PM|#

Pat Buchanan's column today applauds Obama's stance.

Ergo, Buchanan cannot be a racist.

Have I got that right?

|9.15.09 @ 4:39PM|#

Pat Buchanan's column today applauds Obama's stance.

Is it wide?

Chrispy|9.15.09 @ 6:03PM|#

"By cutting taxes I can raise government revenues!" It. Can't. Happen.

Of course this can happen.

Invisible Finger|9.15.09 @ 7:29PM|#

Not as much as they used to be. As I said, increasing percentages of their exports are going elsewhere.

Based on who's numbers? Shipping rates say otherwise, there's a growing number of idle cargo ships, mostly Chinese lines.

JB|9.15.09 @ 11:38PM|#

"Most of Obama's core constituencies want..."

...his fist shoved even further up their asses.