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Richmans' Trade and Taxes Blog
Morici: Create jobs by ending Bush & Obama's "appeasement" trade policy
President Obama's stimulus has failed, just as we predicted. Federal Reserve Chairman Bernanke's QE2 has failed, just as we predicted. The administration and the Federal Reserve have run out of ideas. There is still a solution, but Washington is ignoring it. University of Maryland economist Peter Morici sums it up in a June 9 commentary (Cut Trade Gap to Create Jobs). Here is a selection:
Morici advocates more oil and gas drilling to reduce our imports on foreign oil. He also advocates a currency-conversion tax on Chinese products to balance trade with China. Morici concludes by calling our current trade policy with China "appeasement":
Morici is correct. The United States is probably going to experience years more of high unemployment, simply because of Washington's "appeasement" trade policy. That could change if Governor Palin is elected president. At the moment she is advocating both of the policies that Morici advocates: balanced trade and more drilling for domestic gas and oil.
Journal of Economic Literature:
Atlantic Economic Journal: