Consider the following:
The Real Benedict Arnolds
byy James K. Glassman
Posted: Monday, March 8, 2004
ARTICLES
Scripps Howard News Service
Publication Date: March 8, 2004
Sen. John Kerry is fond of calling CEOs who employ foreigners "Benedict Arnolds," after the despicable Revolutionary War turncoat.
But look at H.J. Heinz & Co., the family business of Kerry and his wife, Teresa. Of the 79 factories that the food-processor owns, 57 (a felicitous number!) are overseas. According to its website, Heinz is making ketchup, pizza crust, baby cereal and other edibles in such countries as Poland, Venezuela, Bostswana, China, Thailand and India.
Put hypocrisy aside. The traitors to American interests aren't CEOs seeking to boost profits that ultimately lead to more hiring at home. The real Benedict Arnolds are Kerry and his colleagues in Congress, like Sens. Hillary Clinton (D-NY) and Jon Corzine (D-NJ), who understand enough economics to know that outsourcing is trade and that trade--as David Ricardo figured out 200 years ago and as Hillary's husband articulated in the 1990s--benefits both parties.
Imagine if U.S.computer companies were forced to make all their components at home. The cost of computers would be higher, so U.S. business could not enhance productivity, grow and hire workers. Plus, U.S.computer makers would be priced out of the market and forced to fire workers.
So far, legislation backed by Clinton, Corzine and the rest has been fairly benign. But they have fanned the flames of protectionist anger, and the fire is raging out of control. One result could be a reversal of the global movement toward open trade, which has been a boon to America.
This is a good time to remember the 1930 Smoot-Hawley Act, which touched off a tariff war that cut global trade by more than two-thirds in five years. Smoot-Hawley, in the view of many economists, intensified and prolonged--and perhaps even caused--the Great Depression.
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http://www.aei.org/news/newsID.20059,filter./news_detail.asp