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Jan. 9, 2009

Rabbi Yonason Goldson: Why there's hope amidst the destruction

Martin Peretz: At War, Not at War

Charles Krauthammer: Will Olmert screw it up yet again?

Jan. 8, 2009

Stratfor Geopolitical Intelligence Report: Arab regimes secretly rooting for Israel?

Larry Elder: Israelis and Palestinians: Who's David, Who's Goliath?

Jeff Jacoby: Yes, it's anti-Semitism

Jan. 7, 2009

Jonah Goldberg: Who are the real Nazis?

Anne Applebaum: Pointless Peace Proposals

Jan. 6, 2009

Caroline B. Glick: Iran's Gazan diversion?

Dennis Prager: Dissecting Dershowitz

Jan. 5, 2009

Mark Steyn: Gaza has its version of rocket scientists

Mona Charen: The So-called International Community

Jan. 2, 2009

Rabbi Abraham J. Twerski: Having a holy tongue

Caroline B. Glick : Hamas' march to victory

Dec. 31, 2008

Dore Gold: Is Israel Using 'Disproportionate Force'?

Renee Enna:: Succulent 'stewp' is quick, easy fix

Dec. 30, 2008

Jonathan Mark: Israel's Response Is Disproportionate

Wesley Pruden: It's time once more to blame the Jews

Dec. 29, 2008

Rabbi Hillel Goldberg: Chanukah: 'Give me Judaism or give me death'

Michael B. Oren: A crisis and an opportunity

Dec. 26, 2008

Rabbi Yonason Goldson: When the past meets the future

Caroline B. Glick: Iran and Hamas do Christmas

Dec. 24, 2008

Rabbi Dovid Zauderer: Judaism's Santa problem

The Kosher Gourmet by Ethel G. Hofman CHANUKAH FORK-FINGER FOOD FEAST

Dec. 23, 2008

Caroline B. Glick: Repeating failure in Gaza

Dec. 22, 2008

Rabbi Boruch Leff: Too many Jews today are missing the intended purpose of one of Judaism's most beloved holidays

Barry Rubin: Liar, liar, pants on cease-fire

Dec. 19, 2008

Rabbi Yonason Goldson: The Final Battlefield

Caroline B. Glick: Betting on a dead horse

Dec. 18, 2008

The Kosher Gourmet by Steve Petusevsky: Juicy Chef's hella top, hella bottom, hallelujah in the middle

Craig Crossman : More gifts for geeks --- and those who love them

Dec. 17, 2008

Dion Nissenbaum: Israel kicks out outrageously biased UN official

Craig Crossman : Gifts for geeks --- and those who love them

Dec. 16, 2008

Jonathan Rosenblum: The Gift of Joy

Frank J. Gaffney, Jr.: Uncle Shariah

Dec. 15, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir : Expert witnesses who put themselves first

Barry Rubin: What they say isn't what you hear

Dec. 12, 2008

Rabbi Hillel Goldberg: Can the Bible be a secular language?

Caroline B. Glick: What a PM Netanyahu faces from Washington

Dec. 11, 2008

Rabbi Leiby Burnham: Our role in the Divine's global corporation, World Inc.

The Kosher Gourmet by Steve Petusevsky: A retro-tasting pareve pot pie made with a light hand

Dec. 10, 2008

Rabbi Paysach J. Krohn: Groom admits he was caught "red handed"

Kara McGuire: No money for gifts? No problem

Dec. 9, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir : Can I make my boss treat me fairly?

Stratfor Geopolitical Intelligence Report: Next Steps in the Indo-Pakistani Crisis

Dec. 8, 2008

Rabbi Avi Shafran: 'Chanukah Bush' flap and graciousness

Mark Steyn: Jews get killed, but Muslims feel vulnerable

Dec. 5, 2008

Rabbi A. Henach Leibowitz: Truth --- The Key to Gratitude

Jeff Jacoby: UN's obsession is grotesque and Orwellian

Oct. 29, 2003
Mortimer B. Zuckerman: Graffiti On History's Walls (MUST-READ!)

Jewish World Review Oct. 20, 2006 / 28 Tishrei, 5767

Against Brownomics

By Rich Lowry


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http://www.JewishWorldReview.com | If only the U.S. economy would have a steep recession. Then, perhaps, Rep. Sherrod Brown's fondest economic dream would come true — the U.S. trade deficit would decline.


Brown is the Democrat who has a big lead in his race to defeat incumbent Republican Sen. Mike DeWine in that traditional breadbasket of Republicanism, Ohio. Brown hopes to overturn the post-World War II free-trade consensus that has been upheld in both the Clinton and Bush administrations. One of his motives is the high U.S. trade deficit: "Our shortsighted trade policies are producing record deficits, and it is time to change course," he says.


The U.S. trade deficit was running at $69.9 billion in August, a record. This should, generally, be a matter of indifference. It means that our economy is healthy and viewed as an attractive place to invest. A trade deficit and capital-account surplus result from the inflow of foreign capital that enables the U.S. to consume and invest more than it could otherwise. Would Brown prefer the alternative?


When the U.S. was rising to become the world's greatest industrial power in the 19th century, it ran a trade deficit for roughly seven decades. During the Great Depression, we ran a surplus. Obviously, a trade surplus in and of itself isn't necessarily desirable. Japan ran a trade surplus when its economy was growing, and ran a trade surplus when its economy was headed toward a decade-long period of stagnation.


Brown wants to reverse the deficit by tightening trade rules. But this would not work. Trade barriers erected by the U.S. would almost certainly trigger foreign retaliation, while undermining U.S. competitiveness. So exports and imports both would fall, still leaving a deficit. Now, U.S. exports are thriving. They were valued at $122.4 billion in August, another record.


Brown complains that we are exporting jobs. One wonders: What jobs could they be? The unemployment rate is 4.6 percent, close to full employment. Yes, there are call centers for U.S. companies in places like India, but are those jobs so desirable that we need to fight to keep them here? Oddly, Brown supports an amnesty for illegal immigrants, a policy whose supporters often argue that illegal immigrants fill jobs Americans won't do. So the Brown position effectively is that we need to keep low-skill jobs — so Mexicans can do them.


Brown also argues that free trade depresses U.S. wages. But the much-hyped lag in wage growth probably has more to do with the business cycle. As the job market tightened, inflation-adjusted earnings have risen 2.2 percent from a year earlier. The stagnation in wages has been exaggerated, in any case. When benefits are taken into account, total inflation-adjusted compensation has risen 10 percent since 2000.


Finally, Brown blames the decline in U.S. manufacturing on free trade. This decline, however, represents a long-term trend, comparable to the decline in agricultural employment throughout the 20th century. As long as the economy is vibrant, workers in a sagging sector find employment in another. This is painful for those workers, but a reactionary parochialism shouldn't be permitted to put their interests above those of the economy as a whole, which benefits from free trade.


There are tangible benefits that Brown's opponent, Mike DeWine, notes. In Ohio, 30 percent of the state's agricultural products get exported and a quarter of its manufacturing jobs depend on exports. More broadly, free trade lowers prices for consumers, alleviating the alleged "middle-class squeeze." It increases efficiency through the fires of competition. It's no accident that one of world's most open economies is also one of the fastest-growing.


Unfortunately, Brown represents a trend. As Jonathan Martin, political writer for National Journal's The Hotline points out, many Democratic senatorial candidates share Brown's views on trade, so the traditionally free-trade Senate will soon be more protectionist. That's bad news for the economy, but maybe, just maybe, through dampening America's growth, Democrats will reduce the hated trade deficit.

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