Free-Trade Kool-Aid Drinking Gets a Pass in "Here's the Deal"Quicklink submitted by Hugh Campbell Permalink
(more...) (less...) ,
Here's The Deal Book Cover
(image by David Leonhardt) DMCA
|This book takes on the partisan issues of tax-cuts versus spending, and admirably examines the proximate causes of our fiscal dilemma but overlooks several root-causes. No mention is made of the free-trade induced cumulative U.S. trade deficit, since the late 1960s, of over $10 Trillion, how it has structurally weakened our economy and its quadruple effect on our fiscal deficit.
Also ignored is how virtually all our major trading partners have replaced tariffs with value-added taxes (VAT) as highly effective consumption tax to minimize tax avoidance, enhance global competitiveness and increase savings/investment.
The quadruple effect on the trade deficit, include: higher safety --net spending, reduced general tax and employment tax revenue, and lower interest rates, which have artificially ballooned the present-value of off-balanced sheet liabilities like Social Security and Medicare.
The time limit for entering new comments on this Quicklink has expired.
This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.