Tuesday, February 26, 2008

Timid men prefer the calm of despotism to the tempestuous sea of Liberty.

I saw on CNN this morning (I was at the gym, and couldn't change the channel to a better news station) that Clinton and Obama are making free trade a major issue in Ohio. Apparently Ohio has lost manufacturing jobs since President Clinton signed NAFTA into law, and the Democrats are both eager to show that they don't support free trade.

There are two issues here, as I see it. The first is econonmic: the government can't protect every industry or everyone's job. They can protect some industries, and so protect some jobs, but this will be at the expense of other industries. Take steel as an example. The government protects the steel industry (through trade restrictions), and steel workers' jobs are safe. But the steel industry needed protection in the first place because the U.S. just can't make steel as cheaply as some other countries can. As a result, the American auto industry has to pay more for steel (because they can only buy U.S. steel, not cheaper foreign steel) and has to lay people off to offset some of the added cost. At the same time the cost of American cars goes up to offset some of the rest of the added cost, while countries that are free to buy cheaper steel can sell their cars more cheaply. The American auto companies then lay off more jobs, because people are buying cheaper foreign cars.

The steel industy is just an example; the same effects are seen any time the government protects an industry. Politicans know this, and economists know this- but most Americans don't. The problem is that is takes years for the effects to be felt, and by that time most people won't connect the dots. This is wonderful for politicians, who can look like the champions of the working class for protecting an industry- and escape all the blame once the effects are felt.

The second issue is possibly even more distressing than the lack of basic economic knowledge evinced in this election season: the growing desire of most Americans for the government to take care of them. The Ohio example: they want the government to guarantee them jobs (and not just any jobs- the ones they want). If an industry is struggling and has to lay people off, they look to the government to end free trade and bring jobs back to that industry. (Apparently finding a job in a different industry or learning a more marketable skill is out of the question.) Compare the reactions to the Democrats, who want to "bring jobs back" (cheers), and to Mitt Romney, who said in Michigan that people need to face the fact that some jobs may not be coming back ("backlash"). People don't want to be self sufficient anymore, so they certainly don't want to be told that the government can't protect their jobs: they just want the government to take care of them. Nevermind that it is impossible for the government to protect everyone- most people don't know that and don't care to find out.

I'm really hoping that the people who are willing to educate themselves and who don't need the government to take care of them don't let ignorance win this election.

The title of today's post is a quote by Thomas Jefferson.

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