HOUSTON -- So tell me again, what's wrong with this?The national economy has grown 54 percent since 1993. More than 25 million jobs have been created. Average unemployment dropped from 7.1 percent in 1994 to 5.1 percent in 2007. And U.S. manufacturing averaged nearly 4 percent gains during that period, almost double the previous 14 years.To hear Sens. Barack Obama and Hillary Rodham Clinton tell it, this wasn't good enough and it's time to consider a "timeout" or "renegotiation" over NAFTA, the U.S. trade agreement with Canada and Mexico, and other trade deals.A chorus of voices offered a counterpoint. One of those that rang loud came from Commerce Secretary Carlos Gutierrez, who wrote this zinger in The Washington Post: "Taking a 'timeout' on trade is akin to standing at a moment when the rest of the world is moving forward." And he added, "Suffocating our economy isn't a viable strategy for prosperity. Pretending we're not part of North America isn't a prescription for growth."Therein lies the trade dividing line not just between parties but among the ideologies going into the selection of the next president.You can almost hear Obama and Clinton lip-syncing Britney Spears saying, "Oops! I did it again." Appealing to isolationism seems to be rhetorically just too tempting to withdraw from it entirely. Playing to the crowd is enticing when the audience doesn't feel it has benefited.In fairness, it's hard to tell people in some parts of the country -- the ones on the downside of global trade, "It's really not all that bad overall." Ohio has lost about 231,000 jobs in the last 10 years.But wasn't change-we-can-believe-in Obama's campaign theme? Change to what? How will the country redevelop by threatening, for starters, commerce with two of our largest trade partners? What purpose does that serve if the jobs are already gone?Someone is not leveling with us on this one. And that's the problem. Scapegoating Canada and Mexico might feel good for a while, but that's not going to bring lost jobs back.A year ago, Clinton told Time magazine she believed in the "general principles of NAFTA." She narrowed the problems down to enforcement, noting, "I believe we need tougher enforcement of the trade agreements we already have." She claimed Bill Clinton's administration had brought more trade-enforcement actions in one year than President Bush had in six.Enforcement is a reasonable claim. But a timeout, as she said later, is a different matter. Obama's assertion of renegotiating NAFTA opens up the proverbial can of worms that many experts already shake their head over.In the first 10 months of 2007, trade between the three North American countries was $742.8 billion. Bilateral trade with Mexico was $290.38 billion, resulting in a $6.7 billion surplus in Mexico's favor.NAFTA has produced a large and growing trade deficit with Mexico. The effects on Ohio and other industrial states have been overwhelmingly negative. In 1993, the year before NAFTA started, the United States had a positive $2.4 billion trade balance from Ohio's cars, trucks and auto-parts manufacturing. By 2007, it had turned into a trade deficit of $12 billion.The Economist magazine, generalizing about NAFTA correctly says, "Trade hurts some people but helps many more."The art of the deal isn't with threats to cut and run where it doesn't work well but to figure out how to spread the pain and benefits and turn it into a winning hand. Telling workers they need to take night-school courses for a new career can be helpful but looks like a Band-Aid for a heart attack.Gutierrez's boast about trade is no comfort for those on the short end of those proud trade numbers. But instead of a retreat from trade, this might be a good time to steal some of the Republican thunder.The discussion should turn next to accelerating the development of new technologies and how we will transition into a well-paid, sustainable, green, post-industrial, education- and training-centered economy. The emphasis is no longer if but how.(Jose de la Isla, author of "The Rise of Hispanic Political Power," writes a weekly commentary for Hispanic Link News Service. E-mail joseisla3(at)yahoo.com. For more stories, visit scrippsnews.com.)
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Trade pact offers more benefits than pain
Submitted by SHNS on Wed, 03/05/2008 - 13:52
Paying taxes unites us. It also divides us. People can pay five and even six times more in state and local taxes than other folks in similar circumstances making similar incomes.
Who's got your number?
In one of the fastest-growing forms of identity theft, crooks are stealing tax refunds by swiping personal information and using it to trick the Internal Revenue Service.




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