Home
Archive
Newsletters
Video
Blogs
Discuss
About
Search
Donate
Advertise

Corporate Accountability and WorkPlace

A Trade Transformation

By David Sirota, Creators Syndicate. Posted February 22, 2008.


Shrewdly, Barack Obama is promising to transform trade policies so that they do not encourage outsourcing.
Advertisement
Upcoming AlterNet stories on Digg

When it came to sex, Bill Clinton made us debate the definition of "is." Now, when it comes to economics, Hillary Clinton wants to debate the definition of "long," claiming this week in Ohio that "I've long been a critic of the shortcomings of NAFTA."

True, Clinton has recently criticized NAFTA -- the 1993 trade policy whose lack of labor and environmental protections encourages companies to move American jobs overseas. But cheap campaign rhetoric over a few months does not make one a longtime critic -- especially considering the record.

During Clinton's 1996 visit to Texas, United Press International reported that she "touted the president's support for NAFTA." In her memoir, Clinton trumpeted her husband's "successes on the budget, the Brady bill and NAFTA." The Buffalo News reports that in 1998 she "praised corporations for mounting 'a very effective business effort in the U.S. on behalf of NAFTA.'" And last year, her lead Wall Street fundraiser told reporters that Clinton remains "committed" to NAFTA's "free" trade structure.

Clinton's attempt to hide this history emulates a principle pioneered by George W. Bush in this, the age of stenographic journalism. As he made his unsubstantiated case for war, Bush proved that the media are willing to present politicians' lies as fact. Clinton simply figures that if she says she has "long been a critic" of NAFTA, then the assertion will be transcribed as truth.

That said, her U-turn is about more than dishonesty -- it is about the public will.

Back when Clinton was the Democrats' presumptive nominee, she wasn't saying much about trade. And in amassing her much-vaunted "experience" in Congress, she never led a fight to reform NAFTA. But now that she is in a competitive nomination contest, Clinton has to try to make her record palatable to voters rather than to corporate lobbyists -- and that means reflecting America's understandable anger.

A September NBC/Wall Street Journal poll found 59 percent of the country believes existing trade policy "has been bad for the U.S. economy." In January, Fortune magazine found 68 percent believes other countries "are benefiting the most from free trade, not the U.S." Exit polls in 2004 showed 70 percent of Ohio Democratic voters blamed trade policies for job losses, and those numbers could be even higher in the state's March 4 primary.

Shrewdly, Barack Obama is promising to transform trade policies so that they do not encourage outsourcing. He is also reminding voters of Clinton's support for NAFTA. The two-pronged message, while belated, perfectly illustrates the difference between "change" and "more of the same" -- and not just in the primary.

The Illinois senator says he wants to win back blue-collar "Reagan Democrats" in the general election. His populism on trade will help.

The NBC/Wall Street Journal poll found that "by a nearly two-to-one margin, Republican voters believe free trade is bad for the U.S. economy." Similarly, a Democracy Corps poll showed that unfair trade policy was the top concern of self-described Republicans who considered casting a Democratic vote in 2006. Against NAFTA cheerleader John McCain (R), Obama's fair trade position can win over these disillusioned voters.

The media will be the big obstacle. Though the public wants reform and BusinessWeek reports that economists are reconsidering their support of NAFTA-style trade deals, the Washington punditburo has long worshiped the status quo on this issue.

When NAFTA was originally debated and polls showed the country divided over its passage, the Washington Post's editorial page editor Meg Greenfield justified her refusal to publish anti-NAFTA commentary by saying that "columnists of the left, right and middle are all in agreement" in support of the deal. Today, that Orwellian blackout has mutated into an onslaught, with the Post's editorial board lambasting Obama for his fair trade rhetoric.

But as Democratic Sen. Sherrod Brown of Ohio told The Nation magazine, the naysaying should be ignored. Brown said the media attacked him for opposing NAFTA, "And so what? I won by well into double-digits, in a slightly Republican state, against an incumbent."

If Obama heeds that advice, neither Clintonian obfuscation nor media vitriol can stop him. He will be on his way to victory and, more importantly, to building a real mandate -- one that will finally force Washington to fix America's broken trade policy.

Digg!    Share on facebook   submit to reddit    Bookmark on Delicious   Stumble This  

See more stories tagged with: clinton, obama, trade, election08

David Sirota is a nationally syndicated weekly newspaper columnist for Creators Syndicate. He is the New York Times bestselling author of Hostile Takeover: How Big Money and Corruption Conquered Our Government and How We Take It Back (Crown 2006). He is also a senior fellow at the Campaign for America's Future and a board member of the Progressive States Network. His second book, The Uprising, is due in the Spring of 2008.

Liked this story? Get top stories in your inbox each week from Corporate Accountability and WorkPlace! Sign up now »


Advertisement
Advertisement

 

Comments Turn comments off sitewide Give us feedback »
Comments closed.
The comments for this story have been closed. Thank you to everyone who participated.
View:
If only your title were accurate.
Posted by: ReformerRay on Feb 22, 2008 4:28 AM   
Current rating: 4    [1 = poor; 5 = excellent]
Obama sees the necessity for a new trade policy but he does not have one that will work. He and Hillary both advocate new and improved trade agreements, with safeguards for workers, environmental standards, etc. Such agreemens do no harm, but they do not attack the core issue.

Trade has harmed the U.S. because the U.S. accepts imports into the U.S. indiscriminately. We ignore the issue of the country of origin of imports. If we discriminated against those countries that maintain a consistent trade surplus with the U.S., our trade deficit would go down and manufacturing activity in the U.S. would increase.

Second, Obama wants to change tax laws so that we do not reward U.S. companies that move their production overseas. Again, such a law will do no harm but it will not slow down the flood of imports produced by non-U.S. based companies.

Obama has a lot to learn about trade. I am supporting him because he seems to have the capacity to learn and to think realistically about the consequences of proposals. He just has not been exposed to serious discussion of the consequences of trade policy options.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» RE: Good , But 'O' w/WallSt. Posted by: Andie927
This post covers a question I had
Posted by: chaoslegs on Feb 22, 2008 7:51 AM   
Current rating: 4    [1 = poor; 5 = excellent]
How is Clinton hoping to win Ohio, when NAFTA is tied to her family's political history and is hurting so many workers there?

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

BOTH, Bad on Trade!!
Posted by: Andie927 on Feb 22, 2008 9:07 AM   
Current rating: 5    [1 = poor; 5 = excellent]
If you really wanted 'Fair' Trade, you should have backed Edwards, when he was running!

What the two candidates left, say now to win votes, is meaningless!! Hillary, and Obama are both FOR 'FREE' Trade! Why the press is allowing Obama a 'free pass' on who his real doners are, is beyond me! Of coarse, the Wall St. Journal backs Obama, so does Wall Street itself!!

Read: 'Subprime Obama' by Max Fraser, The Nation magazine, Feb. 11th edition. Pay close attention to who Obama choose to be his economic advisers. "centist politics of his three chief economic advisers and his ties to Wall Street institutions opposed to increased financial regulation"; Cutler, 'high healthcare costs good', Goolsbee, critic of 'Sicko', Geo.Will wrote a whole column saluting Goolsbee, and his understanding of the need for 'globalization', Liebman, who I googled to confirm this, wants Privatization of Social Security, with 'Private Retiremnt Accts' and a 45% cut in benefits!

I WISH I were making this up!! I am not defending Hillary, but at least she's the Devil we know! Obama, is the one we don't know, anything about, except high rhetorical phrases! Ask Massachusettes how well that worked out for them with Pat. Deval.

Personnally I'm looking seriously at the Green Party, they have a great party platform!

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» RE: BOTH, Bad on Trade!! Posted by: Navyvet59
» About the Greens Posted by: Badger1492
Where's the "T" Word ......... Tariffs ...
Posted by: mmckinl on Feb 23, 2008 12:28 AM   
Current rating: 5    [1 = poor; 5 = excellent]
Bith candidates are playing fast and loose with words. To their credit they have vowed to repeal legislation that rewards out sourcing but that alone will Not slow out sourcing or seriously reverse the trade deficit.

Only Tariffs will remedy our trade situation by retaining and increasing jobs , and reverse what can only be described as our country being bled to death by current account deficits and a falling dollar.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

China, Japan and Germany - "towards Mercantilism" Financial Times
Posted by: mmckinl on Feb 23, 2008 2:52 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
"Three of the five richest nations by total gross domestic product have become de facto neo-mercantilist, setting their sights on trade surpluses. China is keeping its currency artificially low in order to increase its trade surplus and lower its costs of production vis-a-vis competitor countries. Japan is pursuing government-oriented policies to bolster its position in high-technology markets. Finally, and to a lesser degree, Germany has been carrying out reforms to restore industrial competitiveness."


We need a new trade policy. No serious economist will tell you that our trade deficits are sustainable or reversible. We see that other countries are protecting their turf yet we continue to bleed jobs and money.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Almost didn't read when saw the author's name
Posted by: anothername on Feb 23, 2008 5:22 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I agree with the earlier poster that Edwards was the candidate saying no to certain trade deals. For me to trust Obama's comments now, I want to hear what he was saying about the deals in the 1990's. I don't know the exact timeline of his biography, i.e., if he was in the state house, teaching, or organizing, but was there some circumstance in which he developed a record on global trade?

It is unfair of Sirota to claim Hillary Clinton supported NAFTA when she was representing Bill Clinton's administration as an attack on her position now. It would be equivalent to criticizing a secretary of state for representing the president.

How has the support-opposition for trade agreements changed over the past 20 years in the nation as a whole? Sometimes Americans need to see something in action to realize the problems with it.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Republicans in polls saying free trade bad for USA
Posted by: MargoM on Feb 23, 2008 6:30 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
This really, really, REALLY irks me to no end. Republicans are notoriously (although not exclusively) famous for their desire to shrink government and lessen controls that might limit the free reign of businesses.

So what's this b.s. about them not thinking that free trade is good for the U.S.A.? Let's see some consistency here!

If they really believe that free trade is bad for the U.S. economy and that we shouldn't have unlimited free trade, than these people need to be re-thinking whether or not they are Republicans.

Of course, too many democrats just hop on the free trade bandwagon and go along with the republicans too.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Crock O'bama
Posted by: fifthworld on Feb 23, 2008 12:07 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
David,
You're a seasoned political observer. How many campaigns and election cycles do you need to witness before you see the lies of such promises?? I'm amazed at such naivete. Obama is full of shit, and if you are sold on "hope" and "change" and yes-we-can (WTF?) you're lost the the rest of the folks out there being bamboozled by Demcrap fluff. Obama? Clinton? Or a Diebold-sponsored McCain? Coke vs. Pepsi? Cheese Doodles? Bacon double homicide?

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Offshoring patriotism
Posted by: YogiBear on Feb 24, 2008 4:10 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Barack Obama is promising to transform trade policies so that they do not encourage outsourcing.

That would be nice, but the correct term is "offshoring." There ate plenty of inside the country outsourced jobs, though outsourcing locally makes it easier to hide the paper trail to a job overseas. For instance, I worked as a contractor doing tech writing for tech companies like IBM. The contractor was an American company. One day, one of the big tech company clients told the contractor, we'll hire you back this year for the same amount of money, but you have to do X more amount of work. The only way the contractor could accomplish that was to go to India for its contract workers.

Offshoring and inshoring are huge threats to the workforce.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Try calling United Airlines to make a reservation...you get the Phillipines
Posted by: veggiegrrrl on Feb 24, 2008 6:27 PM   
Current rating: 5    [1 = poor; 5 = excellent]
Try calling United Airlines to make a reservation...you get the Phillipines where agents speak a scripted language and struggle with the slightest deviation from the norm (ie: vegetarian meal, extra seat, pet in cabin,etc).

US companies should hire US workers who can understand all dialects and levels of formality (or lack of) in English.

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

Check your facts
Posted by: tcbwriter on Feb 25, 2008 12:59 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
You might want to check the facts before accusing Hillary of beig a NAFTA supporter.

www.factcheck.org
(paraphrased due to space constraints)

NAFTA "Boon"?

On the front of the four-page NAFTA mailer appears a headline saying, "Hillary Clinton believed NAFTA was 'a boon' to our economy." But in fact, Clinton never used the word "boon" to describe the effects of the trade agreement on the U.S. economy, and it's not clear she ever said anything like that.

The Obama mailer quotes a NY newspaper article that ran during her 2006 Senate reelection campaign. Two reporters for the Long Island daily Newsday gave brief descriptions of her stands on a number of issues, including this:

Newsday, Sept. 11, 2006: HILLARY RODHAM CLINTON: Clinton thinks NAFTA has been a boon to the economy, but voted against the Central American-Dominican Republic Free Trade Agreement, saying it would drive jobs offshore.

The day after the mailer surfaced, another Newsday reporter, Dan Janison, conceded that the newspaper didn't get that from Clinton or her campaign.

Newsday's Dan Janison, Feb. 14: The word ["boon"] was our characterization of how we best understood her position on NAFTA, . . . We do not have a direct quote indicating her campaign told us she thought it was good for the economy at that time.

. . . Bloomberg News reported last year that Clinton "promoted her husband's trade agenda for years." Bloomberg quoted her . . . as praising corporations for mounting "a very effective business effort in the U.S. on behalf of Nafta,'' . . .

On the other hand, Clinton biographer Sally Bedell Smith says Clinton privately argued against NAFTA inside the White House and was "not very much in favor of free trade." In an interview with Tim Russert on MSNBC last year she said:

Sally Bedell Smith, Oct. 27, 2007: And Hillary was really prepared to try and kill NAFTA.,/b> [Special Trade Representative] Mickey Kantor had to take her out ... behind the White House, sat her down on a bench, and said, we have to go first with NAFTA. We can come back to health care later, but we have to do NAFTA because we need a success and we need a bipartisan success. And he was absolutely right. And what convinced her at the time was not necessarily the merits of NAFTA, but the fact that it was a good political decision.

So, even then, SHE WAS NOT VERY MUCH IN FAVOR OF FREE TRADE. And so she is consistent. And Bill Clinton continues to be. So, if they were both in the White House together, I wouldn’t want to be in the middle of that little fight.

WE COULD FIND NO DIRECT QUOTE FROM CLINTON PRAISING NAFTA'S ECONOMIC EFFECTS. The Obama campaign cites a 1996 United Press International article as saying that Clinton on a trip to Brownsville, Texas, said NAFTA "would reap widespread benefits in the region." But that's a paraphrase, not a direct quote, so it's not clear to us exactly what she said on that trip.

Earlier, she was criticized by pro-NAFTA forces for a lack of support. In 1993 pro-NAFTA executive Gary R. Edson of Ameritech Corp. complained publicly of a "deafening" silence from Hillary Clinton during the fight to gain Congressional approval:

Gary R. Edson, Oct. 18, 1993: NAFTA should be made the clear priority, with a concerted campaign involving the entire administration, including Hillary Rodham Clinton, whose silence on the issue has been deafening.
And about the same time, a National Journal reporter quoted pro-NAFTA lobbyists as complaining that Hillary was undermining efforts to get the trade pact approved out of fear that pushing for it would alienate supporters of the administration's health care proposal. The headline: "If NAFTA's Bogging Down, Is Hillary to Blame?"

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

  • AlterNetYour turn

Support AlterNet
Do you value the information you're getting from AlterNet? Please show your support with a tax-deductible donation.


Feedback
Tell us how we're doing.

Advertisement
Advertisement