On Dogs, Cats, and Carnal Knowledge

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Reading the Drudge Report just after the House of Representatives defeated a bill that would have given President Obama fast track authority (or “TPA,” for “trade-promotion authority”) to conclude free trade agreements, I remembered a line from the first Ghostbusters movie. The busters (Ray, Egon, Winston, and Peter) are explaining to the mayor that his city is headed for “a disaster of biblical proportions.” When the rather obtuse man asks what they mean by “biblical,” Ray says, “Real wrath of God type stuff.” Egon adds, “Forty years of darkness!” Winston chimes in with “the dead rising from the grave!” Whereupon the ever-arch Peter adds loudly, “Human sacrifice . . . dogs and cats living together . . . mass hysteria!”

What happened on June 12 was that a bill to grant Obama the same power (fast track authority) that almost every other president since World War II has been given went down to defeat in a procedural vote, primarily because Democratic members followed their leader Nancy Pelosi (D-CA) in opposing it. The maneuver was to join Republicans who oppose spending more money on work retraining programs — which are usually just boondoggles that don’t retrain anybody — in voting down a package deal that included the TPA and also increased retraining funds that had earlier passed the Senate.

Talk about a dog and a cat being intimate: arch-conservative Drudge lavishing affection upon arch-leftist Pelosi, the neosocialist harpy from Hell.

Fast track authority is the power Congress can (and almost always does) give any president to negotiate free trade agreements (FTAs) in confidence and without congressional meddling. If any FTA is concluded, it of course becomes law only if the Senate votes in favor of it. Naturally, the Senate can only vote the submitted FTA up or down — it cannot amend it, since amending it is renegotiating it, which the other side of the agreement would not accept. Without such power, you have 435 members of Congress playing president, making it impossible to get any treaty — free trade or otherwise — negotiated.

Despite Obama’s last-minute personal intervention, in which he tried to convince his own party members in the House to support his plan, or perhaps because of his intervention, the bill went down by a vote of 302–126. As one unnamed Democratic congressman put it, “She screwed this president.”

But a number of Republicans opposed the measure, too. Here we get to the dogs and cats getting it on together.

After the vote, Matt Drudge ran a large banner on his website. It screamed, “Brave Pelosi Says No!” Talk about a dog and a cat being intimate: arch-conservative Drudge lavishing affection upon arch-leftist Pelosi, the neosocialist harpy from Hell.

I won’t rehearse all the arguments about why free trade is economically beneficial. I have done so at length in these pages (“The Case for Free Trade,” Liberty, December 2010, pp. 33–41). And the case was made again, succinctly and well, in a recent piece by Larry Kudlow, Art Laffer, and Steve Moore. To economists, 90% of whom favor free trade, it is obvious that free trade is on balance economically good for countries engaging in it. Why is it that when 85% of climate scientists agree on anthropogenic global warming, it becomes “settled science,” but when 90% of economists agree that free trade increases wealth (the theory of comparative advantage), the matter is never considered settled?

The reason for Obama’s defeat is threefold.

First to be mentioned is the decline in free trade sentiment among Democrats. Coming out of the Great Depression and the devastating war it helped to spawn, Democrats agreed with Republicans that the protectionism associated with the Smoot-Hawley tariffs was and is economically counterproductive and geopolitically dangerous — for, as Frédéric Bastiat observed a century and a half ago, when goods cannot cross borders, soldiers will. That is why fast track authority has been given to all but one president since the end of the second world war.

While Obama is a piss-poor negotiator, any free trade agreement he negotiates will likely err on the side of suffocating regulations for both sides.

But the Democrat party has moved ever more toward the extreme left — progressive liberalism, as Solzhenitsyn observed, ever evolving into socialism — and fewer and fewer Democrats are willing to support free trade. Really, Bill Clinton was the last president to push for it, when he signed NAFTA into law. One of the most important of the core Democrat constituencies, Big Labor, loathes free trade. In this most recent vote, for example, when Pelosi and her myrmidons went against fast track for the president of their own party, Big Labor Daddy Richard Trumka (King of the AFL-CIO) praised her mightily, proclaiming that “she stood up against corporate interests.”

Second, despite the best efforts of House Speaker Boehner and Senate Majority Leader McConnell’s to give Obama fast track authority, a portion of the Republican Party opposed the measure. The biggest reason is their distrust of Obama. That’s why websites such as Breitbart.com and the Drudge Report were bashing the bill mightily.

Now, as any more-than-casual reader of these pages knows, I have been unwavering in my opposition to and contempt for the Obama Regime. To put this simply, I regard Obama as the worst president in modern history. (When I said this not long back, one reader chastised me for not characterizing Obama as the worst president in all history, but I confess that my weakness on the history of 19th-century presidents restrains me from agreeing.) President Obama will have done more to harm this country in both domestic and foreign policy than any other modern president, and if we are lucky enough to elect a decent Republican president in 2016, he or she will have to spend most of a first administration reversing the damage.

But as the old saw has it, even a broken clock is right twice a day. More to the point, while Obama is a piss-poor negotiator, in fact really pathetic at it, any FTA he negotiates will likely err on the side of trying to saddle the other side with what he favors for our side too: suffocating regulations. While that is economically deleterious, I doubt that it will result in a net disadvantage to us. Moreover, any final agreement he negotiates must still be approved by Congress, so any grossly unequal deal — say, one that increases Japan’s access to our markets but protects its agricultural industry — can quite easily be voted down, forcing him back to the table.

A good leader has to be a good teacher, too, and explain the ways in which certain ideas are true and certain other ideas are false.

The third, and in my view the most important, reason for Obama’s loss is Obama himself. Let’s put aside the personality issue, which is that Obama is a patently arrogant, distant, snarky, intellectually mediocre narcissist who doesn’t work or play well with anyone except complete stooges. This doesn’t help him, but it isn’t the biggest problem about his free trade initiative. That problem is his history.

Obama has never gone on a tour, selling the need for a trade agreement with Asia and answering the obvious populist arguments against free trade. In this, ironically, he is like George Bush — who, while he negotiated and signed into law more FTAs than any other president, didn’t explain them, argue their importance, or refute the economically ignorant but passionately tribal populist objections to them. Obama doesn’t explain, you see; he merely shows contempt for differing opinions and expects everyone just to see his colossal greatness.

Worse, his history is one of buying the same populist claptrap arguments against free trade that he is being met with now. He bashed Hillary because her hubby signed NAFTA, which, he claimed (parroting the Trumka types), cost jobs; though this was obviously false, as must have been manifest even to an intellectual lightweight such as himself. When in office, he quickly started trade wars against both Mexico and Canada, wars that ceased only when those neighbors fought back and kicked his ass. He stalled the three FTAs left over from the Bush era, only signing them late into his second term, in the face of the worst economic recovery in American history. Now this guy — out of the blue — advocates free trade?

The average American, like the average person anywhere else on this planet, basically has his scientific and moral views set by history. The physics that the average person believes, for example, holds that objects are completely solid, and that they fall at different speeds; that space is completely empty and infinite in all directions, and that it has but three dimensions. Tradition doesn’t make such ideas true. The economics that the average person believes maintains that while labor deserves to be compensated, the lending of money doesn’t; that it is better if all people do all things for themselves, rather than dividing up the tasks among many people, possibly people in different countries; that saving rather than spending hurts jobs, but protecting home industries promotes jobs; and many other things. Tradition doesn’t make these notions true, either.

In short, a good leader has to be a good teacher, too, and explain the ways in which certain ideas are true and certain other ideas are false. But Obama can’t teach anyone about fallacious ideas. Indeed, he often simply accepts them himself — unless he was just lying (something he does with amazing frequency and ease) when he campaigned against Hillary. Either way, he’s not able to teach the public why hunter-gatherer myths are wrong.

Maybe the Republicans can save him from the anti-free-trade crowd, but it is unclear that they can. If not, the biggest loser will be the American public. But I believe in the precept that people get the government they deserve.

em




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When Pigs Fly

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There is an old adage in which I find considerable wisdom: “When a pig flies, you don’t criticize it for not staying up very long.” I take the meaning of this saying to be that when someone who has a habit of making poor choices finally makes a moderately good one, you ought to praise the success, even if you feel he could have done more.

Well, a pig has flown. President Obama, who for his first two years ran the most anti-free-trade administration since the days of the Smoot-Hawley tariff, has managed to salvage a free-trade agreement (FTA) with South Korea, after stalling it for two years and being snubbed in Asia when he tried to strongarm a new deal. He managed a minor renegotiation, getting some relief from Korea’s environmental regulations on our cars and a slowing of our phase-out of tariffs on the Koreans’ trucks. He did this, however, at the cost of keeping Korea’s tariffs on our cars in place for five more years, and of an extra two years of Korean tariffs on American pork products. Hardly worth the wait on a deal that was already well negotiated in 2007.

But the good news is that Obama will finally let the deal proceed, and that 95% of all US and South Korean tariffs will be eliminated within five years. The deal also opens up greater trade in services, allowing (for example) more Korean banks in America and more American banks in Korea. That’s all good.

Now that Speaker Pelosi is finally history, chances are good that Speaker Boehner (“Blubbering Boehner” to his chums) will get the FTA with Korea through the House — and also the FTAs with Colombia and Panama, which have been languishing on the sidelines since Bush left office. It would be helpful if the pig could stay aloft long enough to help get these deals past Congress. So far, Obama hasn’t bothered to do that. He has shown a touching deference to the unions that oppose them, and that gave so much to his presidential campaign.

Yet it seems to be dawning on the exceptionally obtuse Obama that it may be far more useful to his 2012 reelection (gag!) campaign to have lower unemployment than to have higher union contributions poured into his campaign coffers. Perhaps the pig isn’t just flying; perhaps he has had an epiphany.

If for that we are hardly ecstatic, we can at least be satisfied.




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