Posts Tagged ‘Korea Free Trade Agreement’
October 12th, 2011 at 4:42 pm
Pelosi: Let’s Help American Workers by Cutting Them Off from the Global Economy
Posted by Print

In my column this week, I argued that members of Congress from both sides of the aisle are playing with fire in their attempt to prevent China’s “currency manipulation.” The problem, I contended, is actually much smaller than the damage that could be engendered by the proposed remedy; damage that could include a trade war, driving up prices throughout the American economy.

In the column’s coda, I noted:

The antidote to America’s economic ills won’t come from engaging in trade wars. It will come from reducing the debt and making Chinese credit irrelevant; strengthening incentives for entrepreneurs and job creators, and expanding exactly the kind of international trade that this proposal will derail.

Now comes news that House Minority Leader (the three sweetest words in the English language when appearing before her name) Nancy Pelosi not only wants to shut down trade via the China bill, she also wants to gut  free trade agreements with Colombia, Panama, and South Korea that have already been delayed by nearly half a decade. Per Politico:

House Minority Leader Nancy Pelosi took to the floor Wednesday to urge lawmakers to abandon work on three pending free-trade agreements until they take up a bill dealing with China’s manipulation of its currency.

Both the House and Senate are expected to pass the trade deals with Colombia, Panama and South Korea with bipartisan majorities later Wednesday. But the California Democrat, who’s been critical of the pacts, said in a fiery speech that targeting currency manipulation would ultimately benefit more U.S. workers than the free-trade agreements.

At least give the erstwhile speaker credit for consistency. Passing the currency manipulation bill and blocking the free trade agreements would have exactly the same effect: keeping prices artificially high for American businesses and consumers, making it harder to sell American goods overseas, and further delaying meaningful economic recovery. Reviewing that list, it quickly becomes apparent that Nancy Pelosi is a much bigger threat to the state of the American economy than the value of the yuan.