Obama’s Trade Deal: A Bad Deal For America

Friday, June 19th, 2015 and is filed under Blog, Economy, Issues

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At this point in his presidency, President Obama is trying to do anything he can in order to get his final agenda through.

The trade deal proposed by the President between twelve different countries was rejected by his own fellow Democrats. Even House Minority Leader Nancy Pelosi (D-CA) refused to support the president in passing key legislation that would be necessary to eventually get the trade deal underway. Clearly they are coming at it from a different angle than we are, kowtowing to the labor union oligarchs.

Let’s be very clear. We love free trade. These trade deals that the Obama Administration is pushing along with Speaker John Boehner (R-OH) and Majority Leader Mitch McConnell (R-KY) are not free trade vehicles.

Because of issues we’ve already laid out, the Trade Promotion Authority must be defeated as must the trade deal called the Trans-Pacific Partnership, which would unite countries in the East like Singapore, Malaysia, Vietnam, and New Zealand, with countries in the West like Peru, Mexico, Canada, and of course, the United States.

The deal would include a total of twelve of the world’s largest economies, constituting an overall forty percent of the world’s economy. Tied to this, President Obama continues to advocate for fast track authority, which would in turn allow him to submit a trade deal to Congress with limited debate on the proposal and a bar Congress’ ability to amend the deal. Talk about undermining checks and balances in a democratic republic.

The President argues that the trade agreement would not only make it easier to import goods from other countries, but it would also make it easier to export goods domestically produced, thus creating American jobs and benefiting American businesses. Creating the world’s largest free trade agreement would, at least the President hopes, allow the United States to better control the way that things are regulated in the world economy.

Let’s be honest, what the President is really aiming to do is to have more control over China regarding trade, the way that labor is conducted, environmental concerns and more. This isn’t really about helping the American people: the President’s agenda focuses on controlling export giant China. It’s about control, not opportunity.

And frankly, who is he kidding anyway-control China?!

In order to try and compensate for the outsourcing of American jobs, the President proposes a Trade Adjustment Assistance Program, which would provide aid (relocation assistance, subsidized health care insurance, some unemployment benefits) to those who lose their jobs because of jobs being sent overseas. Note, however, that this program is nothing new: it was introduced by President Kennedy in 1962 when he agreed to a trade round and it was implemented to help the labor union’s protectionist monopolies.

Another aspect of the program that isn’t being mentioned is the cost: it would cost about $1.8 billion in order to fund the expansion through 2020, taking nearly $700 million from certain Medicare programs in 2025.

While the bill has received much opposition, it has also received some support from those in the GOP Establishment’s leadership. Speaker of the House John Boehner has advocated amongst fellow Republicans in favor of the deal and Majority Leader Mitch McConnell is quietly looking for vehicles to attach the reauthorization of the Export-Import Bank to.

At this stage, let’s just say that whatever those two are for, we are against.

On top of this, studies show that those who took TAA benefits as opposed to regular unemployment benefits are worse off. The study also showed that those who were younger were more likely to benefit from the program as opposed to older workers.

It’s important to see though the supposed measure that as being billed as the vehicle that will increase exports, create American jobs, and help the American economy, but at what cost? Any measure that would hurt the American people and continue to empower large corporations and a big government, is not a deal that should be considered or made at all.

The President’s so called efforts to help the American businesses and employees out is a wolf in sheep’s clothing to increase the scope of control of the government while hurting American businesses and jobs in the process.