Posted by
silence dogood on Sunday, April 13, 2008 1:35:04 AM
Obama's recent comments on Midwestern sentiment towards God, guns, immigration, and trade reminds me of a letter to a paper by a young Silence Dogood (Ben Franklin) commenting on those who go to Ivy League schools, "where, for want of a suitable Genius, they learn little more than how to carry themselves handsomely, and enter a Room genteely, (which might as well be acquir’d at a Dancing-School,) and from whence they return, after Abundance of Trouble and Charge, as great Blockheads as ever, only more proud and self-conceited."
On a more serious note, I actually think Obama may have been correct that many Americans, liberal elitist's especially, have attemtped to place the balme of their woes on trade. On the pages of the New York Times and CNN's Lou Dobbs we never hear the end of the "outsourcing of America," which only plays on this unfound sentiment. In fact, Mr. Obama has been a catalyst of this belief. He campaigned in Ohio saying that we should possibly pull out of NAFTA and has fierecly campaigned against a free trade agreement with Columbia.
Trade is actually a creator of wealth. This is understood by even liberal economists. such as Paul Krugman, and was first fully explained by Ricardo in his explanation of the theory of comparitive advantage. Economist Russell Roberts has created a simple story to help explain the virtue of trade which can be found at
http://www.econlib.org/library/Columns/y2006/Robertscomparativeadvantage.html.
For those who lament the trade deficits we currently have with China, I would point to a great illustration of trade deficits by 19th century French economist Frederic Bastiat who once pondered that if France, who was fearful of trade deficits, wished to recrod trade surpluses they should send their ships full of goods out to sea and then sink them, so they would not be able to return. Thus ensuring the books would record a surplus of exports. If you think this is a good idea your name may be Senator Kent Conrad. On the other had, if you understand the obsurdity of this reasoning, Frederic Basitat has done his job.