Globalization To The Rescue?

[maldon_road]

Given the protectionist sympathies that seem to be an on-going feature of US politics the upcoming election next year has resulted in a spate of articles such as this. And as the election takes higher profile (primary season is just around the corner) we will hear more calls for reduction of imports into the US and "fairer" trade. I expect that Ms Rodham Clinton to be especially vocal about it. Hilly still thinks that the 9-11 bombers entered the US from Canada so I can see us in her sights although with our new "super" dollar it is the Americans who are benefiting.

It's our versatile villain. Globalization has served as a whipping boy for politicians of both parties—particularly Democrats—and legions of pundits. We blame it for all manner of grievances: lost jobs, greater inequality, shoddy goods. But take this quiz as a reality check. What explains the resilience of the U.S. economy in the face of the deepening housing collapse? (a) Ben Bernanke's deft management of the Federal Reserve; ( the tireless spending of consumers; © improving inflation, and (d) foreign trade.

The best answer is (d).

The trade deficit has been rising for so long and has reached such gigantic dimensions that people forget that it can also fall. Well, it can and it has—to good effect. Through August, the deficit in 2007 was $472 billion, down $46 billion (9 percent) from the same period in 2006. In the second quarter, the U.S. economy expanded at an annual rate of 3.8 percent, even though housing subtracted 0.6 percentage points from growth. But the improved trade balance added 1.3 percentage points, notes economist Edward Yardeni. That was double the loss from housing and also the largest contributor to growth....

http://www.newsweek.com/id/57367/page/1

[Moxie]

So we Capitalist Pigs must shed our earthly bounds and live a pious Communist Lifestyle, the new world order shall be led by HildaBeast of course. Hilly is a hardcore Marxist, need I say more?

[Michael Hardner]

I thought this was the kind of forum where we discourage mis-using terms like 'Marxist'.

The Clintons enjoyed a co-operative relationship with WAL*MART in the 1990s, so it will be interesting to see if she tosses corporate America into the fire during this campaign. Of course, she will not.