Tag: obama

A Flat Tire for Low-Income Drivers?

Will the President raise taxes on new tires?

President Obama will need to decide any day now whether to impose tariffs on lower-end automobile tires imported from China. As my colleague Dan Ikenson has ably argued, the decision will tell us much about whether the president believes trade policy should serve the general interest of all Americans, or whether it is simply a political tool to satisfy key constituencies.
Neglected in the news coverage of the pending decision is the impact it could have on consumers. The imported tires targeted by this Section 421 case are of the cheaper variety, the kind that low-income Americans would buy to keep their cars on the road during a recession. If the president decides to impose tariffs, his union supporters will cheer, but “working families’ will find it more difficult to keep their cars running safely.
A central point of my new Cato book, Mad about Trade: Why Main Street America Should Embrace Globalization, is that import competition is a working family’s best friend, especially imports from China. As I write in an excerpt published in today’s Washington Examiner,
Imports from China have delivered lower prices on goods that matter most to the poor, helping to offset other forces in our economy that tend to widen income inequality. …
Imposing steep tariffs on imports from China would, of course, hurt producers and workers in China, but it would also punish millions of American consumers through higher prices for shoes, clothing, toys, sporting goods, bicycles, TVs, radios, stereos, and personal and laptop computers.
We will see shortly if President Obama will punish low-income Americans who drive.

President Obama will need to decide any day now whether to impose tariffs on lower-end automobile tires imported from China. As my colleague Dan Ikenson has ably argued, the decision will tell us much about whether the president believes trade policy should serve the general interest of all Americans, or whether it is simply a political tool to satisfy key constituencies.

Neglected in the news coverage of the pending decision is the impact it could have on consumers. The imported tires targeted by this Section 421 case are of the cheaper variety, the kind that low-income Americans would buy to keep their cars on the road during a recession. If the president decides to impose tariffs, his union supporters will cheer, but “working families’ will find it more difficult to keep their cars running safely.

A central theme of my new Cato book, Mad about Trade: Why Main Street America Should Embrace Globalization, is that import competition is a working family’s best friend, especially imports from China. As I write in an excerpt published in today’s Washington Examiner,

Imports from China have delivered lower prices on goods that matter most to the poor, helping to offset other forces in our economy that tend to widen income inequality. …

Imposing steep tariffs on imports from China would, of course, hurt producers and workers in China, but it would also punish millions of American consumers through higher prices for shoes, clothing, toys, sporting goods, bicycles, TVs, radios, stereos, and personal and laptop computers.

We will see shortly if President Obama will punish low-income Americans who drive.

Tuesday Links

  • Is the president’s speech part of a sinister plan to create a socialist Obama Youth movement? Hardly. However, let us not forget that our Constitution’s framers thought schooling was too important to be left to a federal government.
  • The Supreme Court will rule Wednesday on whether the government can ban political speech during election time. Here’s the back story.
  • Podcast: The real problem with Obama’s speech to schoolchildren.

It’s Not About the Speech to Schoolchildren

The reaction to President Obama’s planned speech to schoolchildren and the lesson plans sent out by the Dept. of Ed have sparked a firestorm of criticism and accusations about indoctrination, etc.

Many, many people just can’t understand what the big deal is. After all, it’s just a pep-talk about doing well in school and working hard. Sure, there was some language promoting Obama and political leaders. But who cares? It’s just a brief speech by the President after all. Just like Bush the Elder gave in gentler times (which got him a Congressional investigation).

Many are asking the same questions about a number of issues these days. Why the outrage over the deficit? Where were the complaints when Bush the Younger ran it up? Why so exercised about the government health option? Don’t we have Medicare and Medicaid?

Of course Cato scholars, libertarians and many conservatives have criticized these things all along. For some, the new sensitivity, the emotion, is the result of the proverbial straw on a camel’s back, the accumulation of dissatisfaction with various aspects of the government over decades. And what has changed for others is the pace and scope of government expansion at the close of the Bush presidency and the dawn of Obama’s.

The furious reaction to the politicized lesson plan and Obama’s speech to schoolchildren cannot be understood without the context of the bailouts, the stimulus, the debt, GM, the attempt to take over health care.

And now, our kids. And not just the speech and lesson plan, but federal expansion into preschool and early childhood initiatives and home visitations (however voluntary and innocuous-seeming in different times).

They … the government, the meddlers, the nannies … they are coming for our money, our doctors, our guns and our kids. They won’t stop until they control everything.

That’s how it looks to millions of Americans. Fair or not, people are now very sensitive to any actions by the Obama administration.

Just as a lifetime of exposure to an allergen and modest immune reactions can reach some ill-defined tipping point and bloom into full-blown anaphylaxis, many Americans have developed an acute allergy to government intervention and Obama’s grand plans.

In isolation, the reaction to this speech seems wild. Given the context, it’s completely understandable.

Staid Speech Is Cold Comfort

After all of the rancor last week over his planned back-to-school address, it was predictable that in the end President Obama would offer a largely non-controversial speech about working hard and staying in school. If he sticks to the text released today, that is pretty much what he will do. Unfortunately, whether or not that was his original intent – and no one knows for sure but the President and his advisors – many Obama supporters will likely use the relatively staid final product as grounds to smear people concerned about the speech as right-wing kooks or out-of-control partisans. At the very least, such an outcome would be in keeping with a lot of the email I’ve gotten since the story first broke. But it will miss several critical points:

  • No matter how innocuous the content of the speech, this could certainly be an address with very political goals, intended to cast the president in the warm glow of a man who just cares about kids. From kissing babies, to photo-op reading sessions featuring cute tikes on classroom floors, this could be just another instance of the old practice of using children as props for political gain. And how presumptuous of the president to make himself – rather than the children, their teachers, and their schools – the center of attention on what is the first day of school for millions of kids. Finally, add the parts of the speech that sound like the President patting himself on the back for overcoming difficulties as a youth, and the speech could easily have political aims.
  • Many people feared, thanks to politically and ideologically suggestive lesson guides created by the U.S. Department of Education, that the speech would be an effort at indoctrination. Critically, it was only after very loud, initial outrage that the Department made changes to the guides and the White House announced it would release the text of the speech ahead of time. Yet administration defenders act like everyone knew from the outset that the speech would just be about working hard and staying in school. And who knows what the speech might have looked like had there not been so negative an initial reaction.
  • Despite its generally innocuous tone, the speech does contain some controversial political and ideological assertions, including that “setting high standards, supporting teachers and principals, and turning around schools” is the job of the federal government. Also, the things the President highlights as worthy aspirations are disproportionately government and non-profit work. And then there’s this self-aggrandizing assertion: “Your families, your teachers, and I are doing everything we can to make sure you have the education you need to answer these questions. I’m working hard to fix up your classrooms and get you the books, equipment and computers you need to learn.”
  • Ultimately, no matter what happens now that the speech has been published, one thing cannot be ignored or spun: When government controls education, wrenching political and social conflict is inevitable. Americans are very diverse – ideologically, ethnically, morally, religiously – but they all have to support a single system of government schools. As a result, they are constantly forced to fight to have their values and desires respected, and the losers inevitably have their liberty infringed. In this case, reasonable people who want their children to hear the President must fight it out with  equally reasonable people who do not want their children to watch the speech in school. It’s a situation completely at odds with a free society, but as we have seen not just with the current conflict, but seemingly endless battles over history textbooks, the teaching of human origins, sex education, and on and on, it is inevitable when government runs the schools. Which is why the most important lesson to be learned from this presidential-address donnybrook is that Americans need educational freedom. We need universal school choice or crippling conflicts like this will keep on coming, liberty will continue to be compromised, and our society will be ripped farther and farther apart.

    Presidential Cults

    Glenn Greenwald, author of Cato’s much-discussed paper on the success of drug decriminalization in Portugal, writes about cults of presidential personality. He notes that Jay Nordlinger of National Review and other conservatives – not to mention a few libertarians – have criticized the Obama administration’s plan to broadcast a presidential speech into American schools and push teachers to post Obama quotes in their classrooms and encourage students to talk about how President Obama inspires them.

    Greenwald never actually defends the Obama plan. But he does argue that conservatives have short memories when they say that this is something unique. In particular, he reminds us of the notorious Monica Goodling’s questions to job candidates at the George W. Bush Department of Justice, such as “[W]hat is it about George W. Bush that makes you want to serve him?” And also of White House political aide Sara Taylor, who told the Senate Judiciary Committee, “I took an oath to the president, and I take that oath very seriously.” Committee chairman Patrick Leahy had to ask her, “Did you mean, perhaps, you took an oath to the Constitution?”

    Greenwald has a good point. Both the red and blue teams have been far too quick to succumb to a cult of presidential personality. (And really, swooning over Reagan or Obama is sort of understandable. But George W. Bush? You have to wonder if they worked really hard at creating a Bush cult because there wasn’t really much there.)

    But I do see one difference: The Obama administration is trying to push its president-worship onto 50 million captive schoolchildren (not to mention using the NEA to enlist the nation’s artists in promoting Obama and his agenda). Goodling was asking people looking for government jobs why they wanted to “serve George W. Bush.” Now, sure, they should want to serve the public interest – and she was asking these questions to people seeking career legal positions as well as to political appointees. Still, it seems a smaller bit of cultishness than going into every public school.

    Gene Healy wrote about cultishness by both Bush and Obama supporters here.

    Tuesday Links

    • Paul Krugman claims a victory for Big Government, which he says “saved” the economy from an economic depression. Alan Reynolds debunks his claim and shows why bigger government  produces only bigger and longer recessions.
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