Stimulus Spending Takes Free Trade Agreements Hostage
President Obama says he wants to “double our exports over the next five years.” However, now he’s refusing to sign three important free trade agreements without extension of a stimulus program. This is counter-productive to his exports goal and bad policy.
Trade Adjustment Assistance provides a range of benefits to workers who lose their jobs due to foreign trade. However, as The Heritage Foundation’s James Sherk outlines, other programs already provide assistant to workers that lose their jobs and very few workers lose their jobs due to foreign trade.
Free trade agreements, on the other hand, are a no-cost way to improve the US economy and allow businesses to create jobs. In-depth analysis of the three pending free trade agreements, with South Korea, Columbia, and Panama, demonstrates resultant job creation and export increases.
Why saddle effective policy with ineffective spending increases?