Wednesday, December 08, 2004

Buchanan


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So Pat Buchanan just spoke here this semester. That makes two major conservative speakers for undergrad consumption in the last year. I must be dreaming. It also make me wonder if our faculty and staff are schitzo for letting this when they donate like this. (The other speaker was Justice Antonin Scalia)

Buchanan's speech has given me plenty of fodder for writing, but I want to address his economic policy tonight.

For most of my thinking life, I've been a free trader. Originally I didn't know exactly why, just that Republicans seemed to like it. Sophomore year I took a microeconomics course that was fantastic and really locked me in.

Lately, though I've bene doing some thinking, and its a vein that Buchanan managed to tap into to a certain extent.

While I don't advocate protectionism for the sake of jobs, Buchanan is right in that a belief in unfettered free trade doesn't account for American interests.

Free trade is a rising tide that lifts all boats. On the whole we are better off monatarily for it. But we are not necessarily better off by all measures. The case I'm thinking of is China. Our trading with Red China dumps billions of dollars into their treasury. This money is then used to develop their military which targets our allies and us.

At the same time we are losing our manufacturing sector. Being of the realist stance that all states have offensive capabilities and we can never know all their actions we must holdthe possibility that a state which currently manufactures some of our armaments may turn on us. Thus I hold it beneficial to hold a "manufacturing floor" - a point below which we justifiably use government action in order to maintain a capability to rearm reasonably quickly.

Nor is this view without precedent. Adam Smith was one of the first free traders. Yet even he supported the Navigation Acts which restricted English trade. Why? Because failure to pass them would have led to a loss relative to England's rival Holland.

So to sum it all up, free trade is good but should be tempered with conservative judgements about security concerns relating to relative gains with those whom we trade.

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