Topic: Trade and Immigration

Results from the Libertarianism vs. Conservatism Post-Debate Survey

The Cato Institute and Heritage Foundation recently co-hosted a debate in which interns from both organizations debated whether conservatism or libertarianism is the better philosophy. At the conclusion of the debate, the Cato Institute conducted a survey of debate attendees finding important similarities and striking differences between millennial conservative and libertarian attendees.

Full LvCDebate Attendee Survey results found here

The survey finds that libertarian and conservative millennial attendees were similar in skepticism of government economic intervention and regulation but were dramatically different in their stances toward immigration, LGBT inclusion, national security, privacy, foreign policy and perceptions of racial bias in the criminal justice system.

While the survey is not a representative sample, this survey offers a snapshot of engaged conservative and libertarian millennial “elites” who have higher levels of education and political information, and who chose to come to this event. To date, little information exists on young conservative and libertarian elites. Since these attendees are politically engaged millennials, their responses may provide some indication of the direction they may take both movements in the future.

Eighty-percent of millennial respondents self-identified as either conservative (41%) or libertarian (39%): This post will focus on these conservative and libertarian millennial attendees.

Free Trade Without Controversy

This is from the New York Times editorial board: 

More than 50 countries agreed on Friday to eliminate tariffs on a wide range of technology goods like medical devices, navigation equipment and advanced semiconductors in a trade agreement that should benefit American manufacturers, consumers and the global economy.

Signatories to the Information Technology Agreement, which covers 201 product categories, include the United States, the European Union, China, South Korea and other members of the World Trade Organization. International trade in those goods totals about $1.3 trillion a year, or about 7 percent of all trade. 

I worry that I’m speaking to soon, but so far at least, I have not seen any of the usual trade critics complain about this deal.  With trade negotiations such as the Trans Pacific Partnership and the Transatlantic Trade and Investment Partnership, there are lots of groups who are fired up about protesting every stage of the process.  But with this deal to eliminate tariffs on tech goods, these same folks have not had much to say.  Which perhaps suggests a way forward for negotiating future trade deals – focus on lowering tariffs and other forms of pure liberalization, and stay away from “governance” issues such as intellectual property, labor and the environment.  The benefits are greater with this approach, and the controversy appears to be lower.

The Jones Act Strikes Again

People who have heard of the Jones Act (Merchant Marine Act of 1920) generally are aware that its stated purpose is to maintain a strong U.S. merchant marine industry.  Drafters of the legislation hoped that the merchant fleet would remain healthy and robust if all shipments from one U.S. port to another were required to be carried on U.S.-built and U.S.-flagged vessels.  Unfortunately, things haven’t worked out very well. 

The protectionism of the Jones Act has given the United States the type of merchant marine that would be expected from a sector that has been cut off from market forces for close to a century.  Instead of being a global powerhouse, the U.S. merchant fleet has become a minor player.  In 1955 the 1,072 ships in the fleet accounted for 25 percent of global tonnage.  Today the 191 vessels account for 2 percent of the world total.  Those vessels primarily carry cargoes from one U.S. port to another, along with government-generated exports, such as military equipment and food aid. 

TPP Opponents Force Obama to Ignore Human Trafficking

According to news reports, the Obama administration is planning to upgrade Malaysia’s ranking in the State Department’s annual Trafficking in Persons Report.  Advocacy groups are complaining that the move is motivated not by an improvement in Malaysia’s practices but by the administration’s desire to include Malaysia in the Trans-Pacific Partnership.  These critics are probably right, and it’s all the fault of anti-TPP legislators who tried to scuttle the TPP by linking it to human trafficking.

The trade promotion authority statute passed by Congress earlier this summer prohibits the President from negotiating fast-tracked agreements with countries listed as Tier 3 in the trafficking report.  This language was added during committee mark up by Senator Bob Menendez (D-NJ).  The ban is a direct and intentional obstacle to the Trans-Pacific Partnership, which includes Malaysia, a Tier 3 country.

The linkage is sorely misplaced.  As I’ve noted before, no one who’s worried about human rights and the TPP has explained how U.S. or foreign tariffs improve human rights.  Will lowering U.S. and Malaysian tariffs increase the incidence and severity of Malaysia’s human trafficking problems?  How so?  No, the linkage appears to be driven more by traditional opponents of trade liberalization than by concern for improving the plight of people in Malaysia.

But rather than stop the TPP from moving forward, the trafficking provision has merely required the President to embarrass himself by upgrading Malaysia’s status in this year’s report.

Tariffs on Clean Energy

Here is Paul Krugman the other day, touting President Obama’s efforts to promote clean energy:

Some things I’ve been reading lately remind me that there’s another major Obama initiative that is the subject of similar delusions: the promotion of green energy. Everyone on the right knows that the stimulus-linked efforts to promote solar and wind were a bust — Solyndra! Solyndra! Benghazi! — and in general they still seem to regard renewables as hippie-dippy stuff that will never go anywhere.

So it comes as something of a shock when you look at the actual data, and discover that solar and wind energy consumption has tripled under Obama.

True, it started from a low base, but green energy is no longer a marginal factor — and with solar panels experiencing Moore’s Law-type cost declines, we’re looking at a real transformation looking forward.

You can argue about how much this transformation owes to federal policy. …

I don’t know all the reasons why solar and wind energy consumption has tripled in recent years, but yes, you can argue about the role of federal policy here. The federal policy that I follow most closely is trade policy, and what trade policy has been doing is imposing really high import taxes on solar and wind products, thus raising their costs.  Here’s what my colleague Bill Watson and I wrote about this a while ago:

Over the last couple of years, trade remedy actions on clean energy products have intensified. In the wind industry, the Wind Tower Trade Coalition, an association of U.S. producers of wind towers, brought an AD/CVD complaint against imported wind towers in 2011. The U.S. Commerce Department started an investigation, and announced a preliminary decision in December 2012.

This decision found both subsidization and dumping in relation to Chinese imports and imposed an antidumping tariff of between 44.99% and 70.63%, as well as countervailing duties of 21.86%–34.81%. The Commerce Department also established a separate antidumping duty of 51.40%–58.49% on Vietnamese wind tower manufacturers.

In the solar industry, in October 2011, the Coalition for American Solar Manufacturing, a group of seven U.S. solar panel manufacturers led by Solar World Industries America, accused Chinese solar panel companies of dumping products in the United States. The Commerce Department opened an investigation in 2011 and announced the final ruling in 2012. The decision was to impose antidumping tariffs ranging from 24% to 36% on Chinese producers.

If we wanted to promote clean energy, the first thing we could and should do is stop imposing tariffs on these imports! 

ITC Vote Clears Way for New Tire Taxes…and More Frivolous Cases

In a 3-to-3 vote today, the U.S. International Trade Commission determined that the domestic industry producing passenger car and light truck tires was materially injured by reason of dumped and subsidized imports from China. Wait, what?  Yes, that’s right.  Despite the Washington protectionism lobby’s self-portrayal as victims of unfair foreign trade practices who are forced to surmount the highest of hurdles before they can “obtain relief” at everyone else’s expense, tie votes go to the protectionists.  A negative determination would have required four votes. Here’s what I wrote about the case on Friday.

Immigration and Crime – What the Research Says

The alleged murder of Kate Steinle in San Francisco by illegal immigrant Juan Francisco Lopez-Sanchez has reignited the debate over the link between immigration and crime. Such debates often call for change in policy regarding the deportation or apprehension of illegal immigrants. However, if policies should change, it should not be in reaction to a single tragic murder.  It should be in response to careful research on whether immigrants actually boost the U.S. crime rates. 

With few exceptions, immigrants are less crime prone than natives or have no effect on crime rates.  As described below, the research is fairly one-sided.       

There are two broad types of studies that investigate immigrant criminality.  The first type uses Census and American Community Survey (ACS) data from the institutionalized population and broadly concludes that immigrants are less crime prone than the native-born population.  It is important to note that immigrants convicted of crimes serve their sentences before being deported with few exceptions.  However, there are some potential problems with Census-based studies that could lead to inaccurate results.  That’s where the second type of study comes in.  The second type is a macro level analysis to judge the impact of immigration on crime rates, generally finding that increased immigration does not increase crime and sometimes even causes crime rates to fall.