Thursday, June 30, 2011
Why Trade Adjustment Assistance makes sense in Trade Deals
America has to trade with the rest of the World, because even though we are a huge vast country of 310M people and have the third largest population in the World. Because we only represent around 5% of the Worlds Population. For our business's and employees to be able to compete and to do well with the rest of the World, we have to be able to sell our products where most of the population is in the World. Which is outside of the United States, which means having Trade Deals with other countries thats allows our business's to sell our products that are Made in America at low Tariff Rates if any. And in exchange Foreign Business's can sell their products in America at low Tariff Rates if any. And that American Business's have as much Foreign Access to sell our products, as Foreign Business's have in America. And that we are paying the same Tariff Rates as Foreign Business's pay in America if any. I believe the best Tariff Rates are at 0% to encourage as much trade as possible to create as many jobs as possible. As long as America has the same Foreign Access as Foreign Business's have in America. One of the reasons why we have such a huge Trade Deficit in the hundreds of billions if not over a trillion dollars right now. Is because American Business's don't have the same access to Foreign Markets as Foreign Business's have in America, China and Korea are excellent examples of this. Which is why we have to have Trade Agreements with Foreign Nations that allow us to have the same access to their markets and paying the same tariffs as they pay in America if any.
Another thing that would make Trade Agreements work is what is called Trade Adjustment Assistance which is what the White House and Senate Democrats are fighting for. Which is essentially Financial Assistance that should be paid for, for people who lose their jobs as a result of Free Trade. Who lost a job thats not coming back, so they can get retrained and get a job in another field. And not stay unemployed indefinitely but can go back to work. Something else we should be doing is reforming our Unemployment Insurance System and turn them into Job Placement Centers that would help the unemployed get jobs. And allow them to get retrained to get jobs in other fields. Free Trade can work very well and is something that we need. As long as the agreements are fair to both sides, not the results but the written agreements. That gives both sides Equal Access to each others markets.
Click on the link of the blog to see Sen. Orrin Hatch give a speech on Free Trade.