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Nader throws support to Edwards

By: David Paul Kuhn

Politico. com - Dec 31, 2007 08:18 PM EST

http://www.politico.com/news/stories/1207/7647.html
[distributed by CommonDreams.org - January 1, 2008
http://www.commondreams.org/archive/2008/01/01/6100/ ]


MUSCATINE, Iowa - Ralph Nader unleashed on Sen. Hillary
Rodham Clinton Monday - criticizing her for being soft
on defense spending and a chum of big business - and
expressed his strong support for John Edwards.

In an eleventh hour effort to encourage liberal Iowans
to "recognize" the former North Carolina senator by
"giving him a victory," the activist and former
presidential contender said in an interview that
Clinton will "pander to corporate interest groups" if
elected.

Nader specifically accused Clinton of failing to
challenge military spending because "she is a woman who
doesn't want to be labeled as soft on defense, and she
doesn't want to be shown as taking on big business."

As Clinton campaigned through a snowstorm in southeast
Iowa, pledging to "bring about the changes we need,"
Nader accused the Democratic senator from New York of
using empty rhetoric.

"[Clinton] has not led the way against the avalanche of
military contracting, corporate crime, fraud and
abuse," he said. "We want to inform the people of Iowa
about Hillary Clinton because all the focus is on, do
they have the experience and do they have the personal
charisma, and can they cross the aisle" Nader said.

"The issue is corporate power and who controls our
political system and it's not who has experience for
six years or two years," he said, alluding to an
ongoing debate over experience between Clinton and
freshman Sen. Barack Obama of Illinois.

"She has experience in the Senate, and what that
experience has meant is going soft on cracking down on
corporate crime, fraud, and abuse, soft on cutting tens
of millions in corporate subsidies," he continued.

The Clinton campaign declined to comment on Nader's
criticism.

Nader, a four-time presidential candidate, called
Edwards a Democratic "glimmer of hope." He has long
criticized Democrats as indistinguishable from
Republicans, chiding both parties as slaves to
corporate financing and interests.

It was Nader who famously - or infamously to many
Democrats - siphoned off enough liberal votes from Al
Gore in 2000 to hand New Hampshire and Florida, and as
a result, the presidency, to George W. Bush. Since
2004, however, Nader has been increasingly
controversial within the political left. He was booed
at a national conference of progressives earlier this
year.

But he remains a popular figure among some liberals.
Activists are particularly influential in the Iowa
caucuses, if only because participation asks hours of
voters' time. Only a small portion of Iowa Democrats
caucused in 2004.

Clinton is currently locked in a heated three-way race
with Obama and Edwards in Iowa, the first contest of
the presidential primaries.

On Monday, Nader also issued a public statement
criticizing Clinton as a "corporate Democrat," echoing
the exact words Edwards uses to challenge Clinton.
Nader said he has watched Edwards from afar and sees
his more pugilistic brand of populism as an encouraging
sign.

"It's the only time I've heard a Democrat talk that way
in a long time," Nader said, acknowledging what was,
for him, a rare moment of praise for a Democratic
leader.

"Iowa should decide which candidate stands for us," he
added. "Edwards is at least highlighting day after day
that the issue is who controls our country: big
business or the people?"

[The Politico launched in January, 2007 with the
mission of covering the politics of Capitol Hill and of
the presidential campaign, and the business of
Washington lobbying and advocacy with enterprise,
style, and impact. The Politico is a publication of
Capitol News Company, LLC.]

***

http://www.nytimes.com/2007/12/28/opinion/28krugman.html?th&emc=th

Trouble With Trade

By PAUL KRUGMAN
NY Times Op-Ed: December 28, 2007

While the United States has long imported oil and other raw materials from
the third world, we used to import manufactured goods mainly from other rich
countries like Canada, European nations and Japan.

But recently we crossed an important watershed: we now import more
manufactured goods from the third world than from other advanced economies.
That is, a majority of our industrial trade is now with countries that are
much poorer than we are and that pay their workers much lower wages.

For the world economy as a whole - and especially for poorer nations -
growing trade between high-wage and low-wage countries is a very good thing.
Above all, it offers backward economies their best hope of moving up the
income ladder.

But for American workers the story is much less positive. In fact, it's hard
to avoid the conclusion that growing U.S. trade with third world countries
reduces the real wages of many and perhaps most workers in this country. And
that reality makes the politics of trade very difficult.

Let's talk for a moment about the economics.

Trade between high-wage countries tends to be a modest win for all, or
almost all, concerned. When a free-trade pact made it possible to integrate
the U.S. and Canadian auto industries in the 1960s, each country's industry
concentrated on producing a narrower range of products at larger scale. The
result was an all-round, broadly shared rise in productivity and wages.

By contrast, trade between countries at very different levels of economic
development tends to create large classes of losers as well as winners.

Although the outsourcing of some high-tech jobs to India has made headlines,
on balance, highly educated workers in the United States benefit from higher
wages and expanded job opportunities because of trade. For example, ThinkPad
notebook computers are now made by a Chinese company, Lenovo, but a lot of
Lenovo's research and development is conducted in North Carolina.

But workers with less formal education either see their jobs shipped
overseas or find their wages driven down by the ripple effect as other
workers with similar qualifications crowd into their industries and look for
employment to replace the jobs they lost to foreign competition. And lower
prices at Wal-Mart aren't sufficient compensation.

All this is textbook international economics: contrary to what people
sometimes assert, economic theory says that free trade normally makes a
country richer, but it doesn't say that it's normally good for everyone.
Still, when the effects of third-world exports on U.S. wages first became an
issue in the 1990s, a number of economists - myself included - looked at the
data and concluded that any negative effects on U.S. wages were modest.

The trouble now is that these effects may no longer be as modest as they
were, because imports of manufactured goods from the third world have grown
dramatically - from just 2.5 percent of G.D.P. in 1990 to 6 percent in 2006.

And the biggest growth in imports has come from countries with very low
wages. The original "newly industrializing economies" exporting manufactured
goods - South Korea, Taiwan, Hong Kong and Singapore - paid wages that were
about 25 percent of U.S. levels in 1990. Since then, however, the sources of
our imports have shifted to Mexico, where wages are only 11 percent of the
U.S. level, and China, where they're only about 3 percent or 4 percent.

There are some qualifying aspects to this story. For example, many of those
made-in-China goods contain components made in Japan and other high-wage
economies. Still, there's little doubt that the pressure of globalization on
American wages has increased.

So am I arguing for protectionism? No. Those who think that globalization is
always and everywhere a bad thing are wrong. On the contrary, keeping world
markets relatively open is crucial to the hopes of billions of people.

But I am arguing for an end to the finger-wagging, the accusation either of
not understanding economics or of kowtowing to special interests that tends
to be the editorial response to politicians who express skepticism about the
benefits of free-trade agreements.

It's often claimed that limits on trade benefit only a small number of
Americans, while hurting the vast majority. That's still true of things like
the import quota on sugar. But when it comes to manufactured goods, it's at
least arguable that the reverse is true. The highly educated workers who
clearly benefit from growing trade with third-world economies are a
minority, greatly outnumbered by those who probably lose.

As I said, I'm not a protectionist. For the sake of the world as a whole, I
hope that we respond to the trouble with trade not by shutting trade down,
but by doing things like strengthening the social safety net. But those who
are worried about trade have a point, and deserve some respect.





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