Tag: Barack Obama

Echoes of Smoot-Hawley

President Barack Obama appears to have learned something compared to candidate Obama: protectionism isn’t to America’s advantage.  Unfortunately, it is not clear that Congress has learned the same lesson.  Three free trade agreements negotiated by the Bush administration remain in limbo, while no one is pushing to reinstate the president’s so-called fast track negotiating authority.

And past protectionist actions are now bearing ill fruit.  The “stimulus” bill required that construction money be spent in the U.S.  Although the provision was amended in response to foreign criticism, some Canadian firms have been adversely affected.  So Canadian cities have begun boycotting American products.

Reports Reuters:

Canadian municipal leaders threatened to retaliate against the “Buy America” movement in the United States on Saturday, warning trade restrictions will hurt both countries’ economies.

The Federation of Canadian Municipalities endorsed a controversial proposal to support communities that refuse to buy products from countries that put trade restrictions on products and services from Canada.

The measure is a response to a provision in the U.S. economic stimulus package passed by Congress in February that says public works projects should use iron, steel and other goods made in the United States.

The United States is Canada’s largest trading partner, and Canadians have complained the restrictions will bar their companies from billions of dollars in business that they have previously had access to.

“This U.S. protectionist policy is hurting Canadian firms, costing Canadian jobs and damaging Canadian efforts to grow our economy in the midst of a worldwide recession,” said Sherbrooke, Quebec, Mayor Jean Perrault, also president of the federation that represents cities and towns across Canada.

The municipal officials meeting at the federation’s convention in Whistler, British Columbia, endorsed the measure despite complaints by Canadian trade officials.

Trade Minister Stockwell Day told the group on Friday that Ottawa was actively negotiating with Washington to get the “Buy American” restrictions removed.

Thankfully, this bilateral spat isn’t likely to spark another Great Depression.  However, it illustrates how protectionism is self-defeating.  Other countries will not stand by silently as American legislators attempt to bar their products from the American market.  And U.S. workers will be the ultimate victims as the cycle of retaliation spreads.

High-Tech Companies Warn White House about Tax Hike

As I warned in my “deferral” video, the president’s proposal to increase the tax burden on U.S. companies competing in global markets is horribly misguided. The White House has now been put on notice by high-tech executives that they will be compelled to move jobs out of America if this destructive policy is adopted.

Bloomberg reports:

Microsoft Corp. Chief Executive Officer Steven Ballmer said the world’s largest software company would move some employees offshore if Congress enacts President Barack Obama’s plans to impose higher taxes on U.S. companies’ foreign profits. “It makes U.S. jobs more expensive,” Ballmer said in an interview. “We’re better off taking lots of people and moving them out of the U.S. as opposed to keeping them inside the U.S.” 

…Ballmer is one of 10 U.S. software company executives pushing back against the tax proposals in meetings today with White House officials including Jason Furman, deputy director of the National Economic Council, and the heads of congressional committees such as House Ways and Means Committee Chairman Charles Rangel, a New York Democrat. …In a roundtable discussion today, Ballmer, Symantec Corp. Chairman John Thompson and the heads of smaller companies such as privately held Bentley Systems, an Exton, Pennsylvania-based maker of engineering software, said such policies would hurt domestic investment, reduce shareholder value and increase the cost of employing U.S. workers. …Ballmer said…fiduciary responsibility to shareholders would require Microsoft to cut costs, he said, meaning many jobs would be moved out of the country.

Obama’s Sotomayor Nomination: Identity Politics over Merit

In picking Sonia Sotomayor, President Obama has confirmed that identity politics matter to him more than merit.

Judge Sotomayor is not one of the leading lights of the federal judiciary and would not even have been on the shortlist if she were not Hispanic.

She has a mixed reputation, with a questionable temperament and no particularly important opinions in over 10 years on the Second Circuit. Most notably, she was part of the panel that summarily affirmed the dismissal of Ricci v. DeStefano, where the City of New Haven denied firefighter promotions based on an admittedly race-neutral exam whose results did not yield the “correct” racial mix of successful candidates. Sotomayor’s colleague José Cabranes—a liberal Democrat—excoriated the panel’s actions and the Supreme Court will likely reverse the ruling next month.

If this is the kind of “empathy” the president wants from his judges, we are in for a long summer—and more bitter confirmation battles in the future.

Troublesome North Korea Strikes Again

The North Koreans have been busy, testing a nuclear weapon and shooting off missiles.  It seems that nothing upsets North Korea more than being ignored.

President Barack Obama expressed the usual outrage:

These actions, while not a surprise given its statements and actions to date, are a matter of grave concern to all nations. North Korea’s attempts to develop nuclear weapons, as well as its ballistic missile program, constitute a threat to international peace and security.

However, this really is all old news.  Although the nuclear test reinforces the North’s irresponsible reputation, the blast has little practical importance. North Korea has long been known to be a nuclear state and tested a smaller nuclear device a couple years ago. The regime’s missile capabilities also are well-known.

Contrary to the president’s excited rhetoric, the North has little ability to project force beyond the Korean peninsula.  So Washington should treat the North’s latest offense as an opportunity to reprogram the latter’s negotiating formula.

The U.S. should not reward “Dear Leader” Kim Jong-il with a plethora of statements beseeching the regime to cooperate and threatening dire consequences for its bad behavior. Rather, the Obama administration should explain, perhaps through China, that the U.S. is interested in forging a more positive relationship with North, but that no improvement will be possible so long as North Korea acts provocatively. Washington should encourage South Korea and Japan to take a similar stance.

Moreover, the U.S. should step back and suggest that China, Seoul, and Tokyo take the lead in dealing with Pyongyang. North Korea’s activities more threaten its neighbors than America. Even Beijing, the North’s long-time ally, long ago lost patience with Kim’s belligerent behavior and might be willing to support tougher sanctions.

Washington should offer to support this or other efforts to reform North Korean policy.  But without Chinese backing there is little else the U.S. can do.  War on the peninsula would be disastrous for all, and Washington has few additional sanctions to apply.  Beijing has the most leverage on Pyongyang, but whether even that is enough to moderate North Korea’s behavior is anyone’s guess.

North Korea is a problem likely to be long with us. The U.S. has limited ability to influence the North. Washington should offer the prospect of improved relations as a reward for improved North Korean behavior, but should let the North’s neighbors, most notably China, take the lead in managing this most difficult of states.

Iraq’s Refugee Crisis

George W. Bush’s misguided attack on Iraq has had catastrophic consequences for the Iraqi people.  Although the removal of Saddam Hussein was a blessing, the bloody chaos that resulted was not.  Estimates of the number of dead in the ensuing strife starts at about 100,000 and rises rapidly.  The number of injured is far greater.

Moreover, roughly four million people, about one-sixth of the population, have been driven from their homes.  The most vulnerable tended to be Iraq’s Christian community and Iraqis who aided U.S. personnel – acting as translators, for instance.  Yet the Bush administration resisted allowing any of these desperate people to come to America, since to resettle refugees would be to acknowledge that administration policy had failed to result in the promised paradise in Babylon.

This horrid neglect continues.  Reports Hanna Ingber Win:

Of the millions displaced, the United States will resettle about 17,000 new Iraqis this coming fiscal year. While that is a relatively small number of arrivals compared to the number displaced, about a third of them will end up in El Cajon and Greater San Diego. More than 5,000 new Iraqis will arrive in San Diego County during the fiscal year ending September 30, 2009, according to Catholic Charities in the San Diego Diocese. Getting jobs, homes and visas to reunite the families of the new arrivals — many of whom put their lives and their families’ lives at risk by helping the U.S. military — is a monumental task.

As the Iraq War played out, the Bush administration seemed to do everything in its power to ignore the refugee crisis. Former President Bush, reluctant to admit to a failed war policy, never mentioned the plight of the refugees and for years refused to allow Iraqis fleeing the war zone to resettle in the U.S. Only after significant political pressure from members of Congress and advocacy groups did the administration’s policy begin to change, and refugees began gaining access to the United States.

As a presidential candidate, Barack Obama pledged to address the humanitarian crisis caused by the war. He vowed to increase the amount of aid given to countries like Syria and Jordan, which harbor most of the displaced people, as well as expedite the process of resettling refugees here.

“The Bush administration made every effort they could to try to minimize the issue [of Iraqi refugees] in the debate on the war,” Amelia Templeton, a refugee-policy analyst with Human Rights First, says not long after the presidential election. The Obama administration, on the other hand, she says, has made the issue an explicit policy priority. “Obama has said this is a major problem, that we are responsible for this problem and we will try to change this.”

Whether the Obama administration will live up to its rhetoric is still to be seen.

Immigration is an emotional issue at any time.  But there is no excuse for not accepting more persecuted peoples who are fleeing violence sparked by U.S. military action and attacks sparked by their aid for U.S. military forces.  If America refuses to act as a haven for these people, then yet another light will have gone out in what was once a shining city on a hill for the world.

Why We Shouldn’t Bomb Iran—From an Unlikely Source

Many of the same people who were telling us what a cakewalk invading Iraq would be are now lobbying to bomb Iran.  They assure us it would be another cakewalk which would restore American prestige around the world.  Indeed, North Korea and other rogue states would come groveling.

Right.

But an unusual opponent of launching another war has emerged.  Reports the Jerusalem Post:

There is no viable military option for dealing the Iranian nuclear threat, and efforts by the Israeli government and its supporters to link that threat to progress in peace with the Palestinians and Syria are “nonsense” and an obstacle to the Arab-Israeli and international cooperation essential to changing Iranian behavior.

That’s the conclusion of Keith Weissman, the Iran expert formerly at the American Israel Public Affairs Committee (AIPAC), speaking publicly for the first time since the government dropped espionage charges against him and his colleague, Steve Rosen, earlier this month.

There’s no assurance an attack on Iran’s nuclear facilities - even if all of them could be located - would be anything more than a temporary setback, Weissman told me. Instead, a military strike would unify Iranians behind an unpopular regime, ignite a wave of retaliation that would leave thousands dead from Teheran to Tel Aviv, block oil exports from the Persian Gulf and probably necessitate a ground war, he said.

“The only viable solution is dialogue. You don’t deal with Iran with threats or preaching regime change,” said Weissman, who has lived in Iran, knows Farsi (as well as Arabic, Turkish and French) and wrote his doctoral dissertation at the University of Chicago on Iranian history. That’s where the Bush administration went wrong, in his view.

“President Bush’s demand that Iran halt all nuclear enrichment before we would talk with the regime was an excuse not to talk at all,” Weissman said. “And the administration’s preaching of regime change only made the Iranians more paranoid and told them there was no real desire to engage them, only demonize them. The thing they fear most is American meddling in their internal politics.”

His arguments would have had no effect on the previous administration.  But his judgment offers powerful and welcome backing for President Barack Obama, who seems determined to pursue diplomacy.