Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
Obama's trade policy will be an issue in the coming election
The failure of President Obama's trade policy is quite clear. For example, according to the latest statistics from the Commerce Department, net US exports of goods to China fell in February for the 25th consecutive month, as compared to the same month one year earlier, as shown in the graph below:
A recent Republican National Committee (RNC) campaign ad (From 'Hope' to Hypocrisy: Excuses, Excuses) points to Obama's manufacturing job losses, without mentioning that his predecessor, Republican President Bush, had just as dismal a record.
Republican candidate Mitt Romney plans to take a tougher line with China than either of his predecessors. In the February 16 Wall Street Journal (How I'll respond to China's Rising Power), he wrote:
President Obama does not need to continue his failing policy. When President Nixon was faced with an overall trade deficit, he imposed a 10% across-the-board tariff on August 15, 1971, which balanced trade by 1973. (He took advantage of a special WTO rule, then a GATT Rule, which lets trade deficit countries impose trade-balancing duties or import restrictions.) President Obama could win the trade issue in the coming election by imposing the scaled tariff to balance trade.
Journal of Economic Literature:
Atlantic Economic Journal: