No Apology, by Gov. Mitt Romney (R, MA): on Free Trade
Mitt Romney:
Trade is good for the nation, but not good for everybody
US companies faced with innovative and less costly products from overseas have to make one of two choices. They can invest in new technologies, innovations, and productivity improvements themselves and beat the foreign competition at its own game--a
process that often requires unions and suppliers to make adjustments.Alternatively, US companies can argue for protection, hold on as long as possible, and slowly watch their market share wane
The case for trade makes good economic sense--trade improves the wages and standard of living for the average citizen. But trade can disrupt and devastate those individuals directly affected. Owners and shareholders may lose money, of course.
But it is the employees and managers, from the shop floor to the drifting tables to delivery trucks, who take the brunt of the pain. Trade is good for the nation and for the average citizen, but it is decidedly not good for everybody.
Source: No Apology, by Mitt Romney, p.114-115
Mar 2, 2010
Mitt Romney:
Protectionism stifles productivity, under Bush AND Obama
When a country has artificially held down the value of its currency, we must act. Government should also act to stem dangerous foreign environmental policies and to block products produced by child labor. In some cases, an industry may request short-term
--VERY short-term--breathing room so that it can adjust to new competitive threat. Such requests should be granted only when it's clear that the affected American industry can and will act decisively to regain a truly competitive position.
But for every request for protection or subsidy that is warranted, a hundred or more others are not. The Bush administration's decision to protect the US steel industry is a case in point--I agree with those who have concluded that it did more harm than
good. Pres. Obama's action to defend American tire companies from foreign competition may make good politics by repaying unions for their support of his campaign, but it is decidedly bad for the nation and our workers. Protectionism stifles productivity.
Source: No Apology, by Mitt Romney, p.119
Mar 2, 2010
Page last updated: Feb 19, 2019