Thursday, March 04, 2004

One Ohio Columnist Getting Free Trade Right
Apparently there are a few columnists in the manufacturing heavy portion of Northeast Ohio who are willing to take it to the protectionists. Kudos to Michael Douglas, at The Akron Beacon Journal for saying the following ia region where free trade is deeply suspect.

The concern in Ohio is the loss of manufacturing jobs, more than 150,000 since the Bush team arrived in office. (As of December, 5.5 million Ohioans were employed.) A recent analysis by Policy Matters Ohio blamed the North American Free Trade Agreement for a small fraction of the decline. Open trade has long changed patterns of employment, mostly to the benefit of Americans, a development overlooked in the report. Little was said about the many firms in the state that prosper because of trade, paying higher-than-average wages to their workers.

The number of manufacturing jobs has been steadily falling the past three decades. All the while, manufacturing output has increased. Trade agreements haven't been the culprit in the job loss. Technological innovations deserve the blame -- and the applause. Computers and other changes have boosted productivity, and a higher rate of productivity accelerates growth and advances incomes more quickly. That explains why the middle class and those with lower incomes have generally done well in recent years, slowing the widening income gap with wealthier Americans.

John Kerry and John Edwards propose revisiting trade agreements. They miss the point, as does the president when he panders on these issues.

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