Wednesday 27 August 2008

What sort of measures might an Obama administration take to protect the US economy from foreign trade? Do you consider that he would be right to limit free trade in the interests of American workers?

Free Trade Agreement has it pros and cons like any trade union. NAFTA is already protected union, taxes, tariffs, quotas, are limiting its activity in most of trading sectors. Measures, which can be taken by Obama administration in way to protect middle class: for example tax relieves. Most of U.S population blames NAFTA for the decrease in job opportunities; the job outsourcing is their main argument. We might assume that employment problems are not due to free trade union but to U.S. decline in competitiveness, huge potential from Chinese market is starting to overwhelmed American market. More and more people are graduating universities, specialising in engineering and science. In 2004 China’s exports were equal to $180 billion comparing to $ 149 billion of U.S exports. Most of technology goods companies are used to invest in China market, because of Endowment Theory and because of over all gain in final balance shit. We can also see difference in U.S. education investment, most of working class people are either specialised in one career that usually are simple factory skills and those who are short-minded and are not willing to make a change. Obama is particularly concerned about this group of people, because they are also his potential voters. Both McCain and Obama are fighting for almost each of voter because their chances are pretty the same, each of them announcing his campaign in any state has to make small changes in how to approach their audience. Their campaign plans have to be flexible and changeable according to how they are taking too. Free Trade Agreement aims to help U.S economy, increasing new, broader trade opportunities. Open trade increases benefits (NAFTA from $2797 billion to $810 billion). We can see real example of job increase in Europe after United Europe creation. It increased by 600,000 jobs from 1994 – 1998. The idea of free trade is there should be no limits; every future limitation brought by Obama will slow America’s economic growth. Main thing, which Mr. Obama should take under consideration, is the result of closing borders, this will not only cause a layoffs but also the same response from other countries. U.S. wants to trade with every one but only when they are benefiting and setting rules which in today’s world is impossible. In case of Mexico most of America’s citizens see it as coming Mexicans immigrants and “steeling” their jobs but they don’t see how much U.S. is gaining from exporting their products to Mexico worth over $200 billion.
http://www.youtube.com/watch?v=vyq4gzvAeRc

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