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Cato Podcast

Trade, Trade, Please Go Away

Cato Podcast

Cato Institute

Cato, Peace, Policy, Politics, Markets, Defense, Government, News, News Commentary, 424708, Immigration, Libertarian

4.5979 Ratings

🗓️ 4 November 2009

⏱️ 6 minutes

🧾️ Download transcript

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0:00.0

This is the Cato Daily Podcast for Wednesday, November 4th, 2009. I'm Caleb Brown.

0:08.0

President Obama's record on trade is not good and history doesn't look well upon the combination of protectionism and recession.

0:16.0

Dan Griswold is director of the Cato Institute's Center for Trade Policy Studies.

0:20.0

He's author of the new Cato book Mad About Trade, available at Cato.org.

0:27.8

Give me a charitable assessment of what you think President Obama is trying to do with protectionism?

0:35.0

I think President Obama just wants the trade issue to go away.

0:39.0

Key constituencies like organized labor, the Greens, the Left generally, hate trade liberalization because it's an important aspect of free markets and free market economics.

0:51.0

Organized labors come out strongly against trade. That's why he imposed the

0:56.7

tire tariff. That's why he's dragging his feet on trade agreements with Colombia and South Korea.

1:03.0

He talks free trade and global fora,

1:07.0

but his actions at home have shown that he doesn't want trade liberalization.

1:12.0

President Obama fancies himself a champion of the poor.

1:15.0

His record in Chicago, I think to some degree bears that out.

1:20.0

But as a politician, it is easy to support a policy whose effects are largely

1:27.7

going to be unseen and as a politician your hands are going to be relatively clean when that policy actually harms people you want to help.

1:36.0

Yes, once again there's a disconnect between what he says and what he does.

1:40.4

The dirty secret of the US tariffiff Code is that it's heavily biased

1:45.1

against the poor. 25 billion dollars that we collect from tariffs each year is the

1:50.1

most regressive tax in the arsenal of the federal government.

1:53.1

We impose our highest trade barriers on products that are disproportionately consumed by poor people

1:58.2

here in the United States and by the way made and grown by poor people abroad.

2:01.6

Food, clothing, shoes. And as I pointed out in a recent

...

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