Friday, June 24, 2005

Krauthammer on CAFTA

A Party Without Ideas: "The Democratic Party has always seen itself as the tribune of the oppressed of the Third World and as deeply distressed by the fact that 'the United States by far is the stingiest nation in the world for development assistance or foreign aid,' to quote Jimmy Carter, former Democratic president, current Democratic saint.

You would think, therefore, that Democrats would be for CAFTA. Not so. CAFTA is in great jeopardy because Democrats have turned against it. Whereas a decade ago under President Bill Clinton, 102 House Democrats supported the North American Free Trade Agreement, that number for CAFTA is down to 10 or less. In a closed-door meeting this month, reports Jonathan Weisman of The Post, House Minority Leader Nancy Pelosi put heavy-handed pressure on all congressional Democrats to observe party discipline in killing the treaty.

Arguing free trade is particularly tiresome because it is the only proposition in politics that is mathematically provable. It was proved by British economist David Ricardo in 1817 that even if one country is more efficient in producing two items, trade between two countries based on the relative efficiency of production is always beneficial to both countries.

Mathematics does not change, but calculations of political expediency do. "
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Nice reference to the "Theory of Comparative Advantage." I guess Pelosi and her minions skipped Economics 101.

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