Diary

More proof

zyxwvutsr.

Posted to Diary on Sat Apr 19, 2008 at 09:38:28 AM EST. RSS.

A week and a half ago US Speaker of the House Nancy Pelosi shot down a free-trade agreement between the US and Colombia, saying,

"We should certainly do more for our economy before we pass another trade agreement."

Anyone who's been following the news lately is surely aware that the US stock markets have been hard hit by recent economic woes. There was a rally on the NY Stock Exchange yesterday, driven by some timely good news: key manufacturers, including heavy equipment maker Caterpillar, announced strong earnings

How did Caterpillar grow during a downturn in the US economy? Increased sales overseas, including (if you saw this coming, you're smarter than Nancy Pelosi) in Colombia.

Caterpillar is not the only manufacturer of heavy equipment that is trying to increase its sales in South America. The Japanese firm Komatsu makes similar equipment, sells it in South America, and therefore directly competes with Caterpillar. A free trade agreement between the US and Colombia would instantly put Caterpillar's equipment at a cost advantage over Komatsu's, and would increase sales and benefit American workers.

More proof, as if we needed it, that the Democratic Party is bad for business.

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1

Yep

keta.

Mon Apr 21, 2008 at 02:02:29 PM EST

none

The economy is in the dumper and it's all the fault of the Democrats.

Jesus fucking Christ.

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Re: Yep

zyxwvutsr.

Mon Apr 21, 2008 at 06:48:14 PM EST

none

No, the economy is in the dumper because of the business cycle coupled to a loose monetary policy and a structural federal deficit. What's the fault of the Democrats is obstructing the sort of measure that would help shorten the recession. The Democrats don't want a short recession, of course - they need it to be as bad as possible come November. They also do the bidding of the big labor unions no matter how much harm may befall the nation because of it.

2

Nice Try Though

thefadd.

Mon Apr 21, 2008 at 05:03:28 PM EST

none

Lack of a free trade agreement is not why heavy equipment sales to Colombia have gone down.

It is easy to buy small plaster models of what you think life is like.

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Re: Nice Try Though

zyxwvutsr.

Mon Apr 21, 2008 at 06:42:28 PM EST

none

Sales have gone up. Nice try, though.

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Re: Nice Try Though

thefadd.

Mon Apr 21, 2008 at 07:00:45 PM EST

none

Then what's the problem?

It is easy to buy small plaster models of what you think life is like.

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^ 5

Re: Nice Try Though

keta.

Mon Apr 21, 2008 at 07:15:04 PM EST

5.00 (funny)

The problem is the Dems aren't cleaning up the fucking mess the Republicans made fast enough.

Sheesh, thefadd, haven't you been following along here?

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Re: Nice Try Though

zyxwvutsr.

Mon Apr 21, 2008 at 08:39:23 PM EST

none

Honestly, who the fuck gives a shit about the Democrats or Republicans when people are about to lose their jobs? Your absurd partisan sarcasm is representative of the problem with Democrats.

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Re: Nice Try Though

keta.

Mon Apr 21, 2008 at 08:57:12 PM EST

none

Honestly, just about everyone gives a fuck about Democrats and Republicans when people are about to lose their jobs because it's a fucking election year.  Your absurd inability to reflect that the shit-hole you're currently mired in is because of GOP mismanagement is representative of the problems with Republicans.

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Re: Nice Dry Throat

zyxwvutsr.

Tue Apr 22, 2008 at 09:25:36 AM EST

none

Your absurd inability to reflect that the shit-hole you're currently mired in is because of GOP mismanagement...
I noted above the structural deficit that has contributed to the recession. That is largely the responsibility of the Reublicans.

...is representative of the problems with Republicans
But I'm a Democrat.

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Re: Nice Try Though

zyxwvutsr.

Mon Apr 21, 2008 at 08:37:11 PM EST

none

Are you serious? I mean, are you seriously that stupid?

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Re: Nice Try Though

thefadd.

Mon Apr 21, 2008 at 08:57:35 PM EST

none

You said sales went up. I'm trying to understand the rest of your argument. If I sold tractors to Colombia I'd want tractor sale tariffs reduced, too. But guess what? I don't sell tractors to Colombia so my economic outlook could give a crap. Like I said, sales went up, why are you bitching? Sales are up but profits aren't up enough because of tariffs that have been in place as long as Caterpillar's been in business? Caterpillar is the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. They've been around for 83 years. If they can't compete in a capitalist society without a change in the laws Right Now Wa Wa Wa, I really don't see why I should get out of bed for it.

It is easy to buy small plaster models of what you think life is like.

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Re: Nice Try Though

zyxwvutsr.

Tue Apr 22, 2008 at 09:34:02 AM EST

none

I don't sell tractors to Colombia so my economic outlook could give a crap
Fair enough, but most Americans would prefer to see the US unemployment rate go down, not up.

Like I said, sales went up, why are you bitching?
Because sales could increase even more, thereby putting Americans back to work.

Sales are up but profits aren't up enough because of tariffs that have been in place as long as Caterpillar's been in business?
Caterpillar's profit margin is less than 8%, but that's not the point here. A 5% price advantage won't have much effect on the profit margin, but it would have an effect on volume, meaning more jobs for Americans. But since you don't care if other Americans are unemployed, I can understand why you are so fixated on profits.

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Re: Nice Try Though

thefadd.

Tue Apr 22, 2008 at 01:52:36 PM EST

none

That's a large leap to assume that Caterpillar will pass those good times along to laborers. But still, you're correct in that I personally don't think it's all that imperative that the economy be "turned around" right now since unemployment rates remain amazingly low from an historical perspective and doing away with a generations old trade system seems like a rash answer.

It is easy to buy small plaster models of what you think life is like.

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Re: Nice Try Though

zyxwvutsr.

Tue Apr 22, 2008 at 02:20:21 PM EST

none

That's a large leap to assume that Caterpillar will pass those good times along to laborers
Did you understand what I meant when I said that Caterpillar's profit margin won't be affected (at least not very much) by the additional sales? Do you think bulldozers make themselves? If not, how can caterpillar make more sales without passing along the benefit to workers. (I am assuming that Caterpillar's largest input is labor and the benefit of larger sales will fall mainly to workers rather than to investors - that's normally the case with manufacturing.)

...doing away with a generations old trade system seems like a rash answer
Opposing free trade for reasons of tradition seems like an odd position to take, but whatever.

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Re: Nice Try Though

thefadd.

Tue Apr 22, 2008 at 02:30:34 PM EST

none

I'm not familiar enough with Caterpillar's production capacity to make that assumption. There are numerous ways a modern manufacturing outfit can increase its output without putting pressure on its labor costs.

Opposing free trade for reasons of tradition seems like an odd position to take, but whatever.

Yes, the ability of the American economic system to bring greater prosperity to workers than any other system on earth since WWII is nothing but a silly tradition that needs to be dispensed with immediately in the name of globalization.

It is easy to buy small plaster models of what you think life is like.

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Re: Nice Try Though

zyxwvutsr.

Wed Apr 23, 2008 at 11:25:31 AM EST

none

There are numerous ways a modern manufacturing outfit can increase its output without putting pressure on its labor costs
Not in the short term there aren't. If Caterpillar got additional orders from Colombia this year they'd have to run their assembly lines longer, meaning overtime pay or new hiring.

Yes, the ability of the American economic system to bring greater prosperity to workers than any other system on earth since WWII is nothing but a silly tradition that needs to be dispensed with immediately in the name of globalization
Please explain how tariffs in foreign countries contributed to American prosperity.

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Re: Nice Try Though

thefadd.

Wed Apr 23, 2008 at 01:29:37 PM EST

none

Not in the short term there aren't. If Caterpillar got additional orders from Colombia this year they'd have to run their assembly lines longer, meaning overtime pay or new hiring.

Once again, that's a vastly broad assumption. You have no idea whether or not every American company that would benefit from a free trade agreement with Colombia is operating at full production capacity.

Please explain how tariffs in foreign countries contributed to American prosperity.

Why? Because trade agreements only go one direction in your myopic world view?

It is easy to buy small plaster models of what you think life is like.

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Re: Nice Try Though

zyxwvutsr.

Wed Apr 23, 2008 at 01:44:44 PM EST

none

Why? Because trade agreements only go one direction in your myopic world view?
Do you know what caused the Great Depression?

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Re: Nice Try Though

thefadd.

Wed Apr 23, 2008 at 01:49:49 PM EST

none

No, I have no idea. Why don't you enlighten me.

It is easy to buy small plaster models of what you think life is like.

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Re: Nice Try Though

zyxwvutsr.

Wed Apr 23, 2008 at 01:51:57 PM EST

none

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Re: Nice Try Though

thefadd.

Wed Apr 23, 2008 at 02:01:33 PM EST

none

I'll ask you the same question you asked me: what does that have to do with tariffs imposed by foreign countries?

It is easy to buy small plaster models of what you think life is like.

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Re: Very Easy to Understand

zyxwvutsr.

Wed Apr 23, 2008 at 06:30:31 PM EST

none

  1. Increasing tariffs is bad for the economies affected.

  2. Decreasing tariffs is good for the economies affected.

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Re: Very Easy to Understand

Lou.

Wed Apr 23, 2008 at 07:08:20 PM EST

none

So, this is Columbia's tariff not ours...and we're asking them to take down the tariff.  Ok, what does Columbia get from this?

I can't argue with your logic...but I can recommend a good therapist

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Re: Very Easy to Understand

thefadd.

Wed Apr 23, 2008 at 07:19:29 PM EST

none

As blanket statements, you're simply wrong. Only the most liberalized economic thinkers would subscribe to such a broad brush analysis of world markets and there are very, very few economists who hold such an extreme view, let alone politicians--be they Democrats or Republicans.

It is easy to buy small plaster models of what you think life is like.

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Re: Very Easy to Understand

zyxwvutsr.

Fri Apr 25, 2008 at 08:17:01 AM EST

none

As blanket statements, you're simply wrong. Only the most liberalized economic thinkers would subscribe to such a broad brush analysis of world markets and there are very, very few economists who hold such an extreme view
I have no idea why you are so poorly informed about economic theory:
The literature analysing the economics of free trade is extremely rich with extensive work having been done on the theoretical and empirical effects. Though it creates winners and losers, the broad consensus among members of the economics profession in the U.S. is that free trade is a large and unambiguous net gain for society. In a 2006 survey of American economists (83 responders), "87.5% agree that the U.S. should eliminate remaining tariffs and other barriers to trade" and "90.1% disagree with the suggestion that the U.S. should restrict employers from outsourcing work to foreign countries." Quoting Harvard economics professor N. Gregory Mankiw, "Few propositions command as much consensus among professional economists as that open world trade increases economic growth and raises living standards."

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Re: Very Easy to Understand

thefadd.

Fri Apr 25, 2008 at 12:46:42 PM EST

none

Too bad you misquoted that entire page and also left out the part about, "This neoclassical trade theory focuses on one dimension, i.e., the price at which a commodity can be delivered and is extremely narrow in cutting off a large number of other considerations about impacts on employment in different parts of the world, about environmental impacts and on culture."

It is easy to buy small plaster models of what you think life is like.

33

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Re: Very Easy to Understand

zyxwvutsr.

Fri Apr 25, 2008 at 02:38:16 PM EST

none

That was not a misquote, and the part you cited is the opinion of one economist who dissents from what is clearly the majority view.

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Re: Very Easy to Understand

thefadd.

Fri Apr 25, 2008 at 02:48:21 PM EST

5.00 (funny)

I think the "Neutrality of this article is disputed" tag at the top of the page says all that needs to be said about the wikiality of your myopic view. Please take the time to respond to this post so that you can get the last word in.

It is easy to buy small plaster models of what you think life is like.

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^ 34

Re: Very Easy to Understand

zyxwvutsr.

Fri Apr 25, 2008 at 02:51:18 PM EST

5.00

Please take the time to respond to this post so that you can get the last word in
No.

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Re: Very Easy to Understand

Lou.

Sat Apr 26, 2008 at 10:40:07 AM EST

none

Why not?

I can't argue with your logic...but I can recommend a good therapist

11

2 points

Lou.

Mon Apr 21, 2008 at 09:38:50 PM EST

none

While it may fun to pick on the democrats (Picked on by bullies?  Yeah... how many swirlies do you think Rove had to endure?), this issue has deeper roots than the write-up insinuates.

  1. The Bush administration tried to fast track a trade agreement without consulting the majority party.  Perhaps Bush doesn't realize he no longer rules by decree.

  2. Columbia is not a healthy place for organizers.  Something like 17 have been murdered so far this year so it looks like the death toll will break last years record of 26.  Sure it would be great to sell more goodies to Columbia but killing off people who are trying to organize often offends.  It puts the American unions in a difficult place.

I can't argue with your logic...but I can recommend a good therapist

14

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Re: 2 points

zyxwvutsr.

Tue Apr 22, 2008 at 11:15:34 AM EST

none

The Bush administration tried to fast track a trade agreement without consulting the majority party
So you're suggesting that the Democratic response was merely petulance? How immature.

Sure it would be great to sell more goodies to Columbia but killing off people who are trying to organize often offends.  It puts the American unions in a difficult place
I don't know why you think that should be a reason to maintain trade barriers that are detrimental to the US. Also, if that's the real reason that the Democrats are against the agreement, why didn't Speaker Pelosi say so instead of spouting nonsense about first doing "more for our economy before we pass another trade agreement"? The whole point behind trade agreements is doing something for our economy. The Democratic Party leadership obviously doesn't understand that very, very basic economic reality.

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Re: 2 points

Lou.

Tue Apr 22, 2008 at 06:16:23 PM EST

none

So you're suggesting that the Democratic response was merely petulance? How immature.

Immature?  Maybe they took lessons from the best?

But of course, we both know that it goes beyond petulance.  Our Muscular President continues to act by decree.  I guarantee you that if were turned around a republican legislature would be screen bloody murder.  

I can't argue with your logic...but I can recommend a good therapist

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Re: 2 points

zyxwvutsr.

Wed Apr 23, 2008 at 11:27:10 AM EST

none

But of course, we both know that it goes beyond petulance.  Our Muscular President continues to act by decree.  I guarantee you that if were turned around a republican legislature would be screen bloody murder
Blah, blah, blah. None of that changes the fact that the Democrats' actions are actively harming US economic growth. Your only response is "well, the Republicans are bad, too!"

29

Tit for tat

Lou.

Fri Apr 25, 2008 at 07:58:23 AM EST

none

One thing I wish would be made clear is this...what must we give up to encourage Columbia to take down their tariff on our equipment?  Seriously, this issue must be way more complex than signing an agreement and happy days are here again.  What must the US give up in order to sell more Cat equipment?

I can't argue with your logic...but I can recommend a good therapist

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Re: Tit for tat

zyxwvutsr.

Fri Apr 25, 2008 at 08:19:45 AM EST

none

What must the US give up in order to sell more Cat equipment?
According to the State Department: petroleum, coal, coffee, flowers, textiles and garments, ferronickel, bananas, chemicals, pharmaceuticals, gold, sugar, cardboard containers, printed material, cement, plastic resins and manufactures, and emeralds. But never mind all that. What does Nancy Pelosi say we'll have to give up?

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