Michael Bloomberg is a Free-Trader

Mayor Bloomberg has recently written a letter to the Financial Times that’s title is “America must resist protectionism.”

Bloomberg and me disagree strongly on gun-control but he has said the best thing I’ve heard in a long time:

“If America is to remain the world’s economic superpower, it must capitalise on the opportunities and confront the challenges. Countries that run away from globalisation in the 21st century – as with those that ran away from capitalism in the 20th century – will pay a heavy price for decades to come.”

Oh it doesn’t get better than that but this is good too in commenting on people scared of China’s massive growth:

“A growing China creates jobs for our export producers, keeps consumer prices low, expands our choice of goods and services, and increases our access to capital and talent. It also intensifies pressure on China itself to act responsibly on international issues, including security, trade, product safety and climate change. Our serious differences with China in these and other areas must be managed through engagement, not used as excuses to pursue politically expedient – and economically wrong-headed – short-term retaliatory measures.”

Shaabam:

“What of the argument that China is taking jobs from America? Those jobs – if they did not go to China – would go somewhere else. The US government cannot keep them here through costly consumer-funded tariffs and taxpayer-funded subsidies. We learnt that lesson the hard way in the 1970s, when congressional protection of the automotive industry only hurt Detroit and helped its foreign competitors.”

He has made my job easier I couldn’t have said any of this better:

“The opportunities created by globalisation will raise salaries and living standards for American families, but the transition can be difficult. The way to help workers affected by globalisation is not to prop up uncompetitive industries, but to assist the people who are displaced, so that they do not bear the costs of globalisation alone. This means strengthening our support of displaced workers and increasing investment in them, so that we can help them acquire the skills that the new economy demands.”

I have a new respect for Mayor Bloomberg.

~PCCapitalist

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Published in: on December 15, 2007 at 5:10 am  Comments (1)  
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  1. Countries that run away from globalisation in the 21st century – as with those that ran away from capitalism in the 20th century – will pay a heavy price for decades to come.

    First mistake Bloomberg makes is that he confuses globalization with capitalism. They aren’t one and the same. Not surprised that he would do so given that he’s a New World Order hack just like many other elites.

    A growing China creates jobs for our export producers, keeps consumer prices low, expands our choice of goods and services, and increases our access to capital and talent.

    And gives lead-poisoning to our children…

    It also intensifies pressure on China itself to act responsibly on international issues, including security, trade, product safety and climate change.

    Did Bloomberg really say this with a straight face? The Chinese are laughing all the way to the bank–where they’ll continue to illegally undervalue their currecy in order to increase exports.

    What of the argument that China is taking jobs from America? Those jobs – if they did not go to China – would go somewhere else.

    Somewhere else, meaning nations that do not have nuclear weapons pointed at the United States.

    We learnt that lesson the hard way in the 1970s, when congressional protection of the automotive industry only hurt Detroit and helped its foreign competitors.

    Wrong. It was because Detroit wasn’t producing what the market demanded. People wanted a different kind of car and Detroit didn’t listen. Had little to do with international trade, however the Japanese were illegally undervaluing their currency and using subsidies to dump on our market (which they still do today).

    The way to help workers affected by globalisation is not to prop up uncompetitive industries, but to assist the people who are displaced, so that they do not bear the costs of globalisation alone. This means strengthening our support of displaced workers and increasing investment in them, so that we can help them acquire the skills that the new economy demands.

    Translation: we need to raise taxes in order to expand our socialist welfare-state so that we can deal with the blow-back resulting from globalization.


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