Free Trade And The Presdiential Politics

On the eve of the Ohio presidential primary, I want to reflect on a growing concern I have about Obama and Clinton concerning their stance on NAFTA and free trade. It seems that lately, as David Leonhardt points out in the New York Times, complaining about NAFTA and free trade is a rallying cry for democrats in the same vain as abortion is for Republicans. They love to complain about free trade but have yet to take any concrete steps to go the protectionist route, altogether.

Granted, being in Ohio, I have most likely heard such talk louder than others. The democratic candidates, for the past few weeks, have liked to point out that this state has been hit harder than most by the down economy. However, it is foolish to blame free trade. In fact, as a Wall Street Journal editorial points out, the likely culprit is protectionist policies, not free trade. "Ohio Governor Ted Strickland, a Democrat who supports Mrs. Clinton, blames his state's problems on President Bush. But Ohio's economy has been struggling for years, and most of its wounds are self-inflicted. Ohio now ranks 47th out of 50 in economic competitiveness, according to the American Legislative Exchange Council. Ohio politicians deplore plant closings even as they impose the third highest corporate income tax in the country (10.5%) and the sixth highest personal income tax (8.87%)."

It certainly does not appear that NAFTA and other such agreements hurt Ohio, as the column continues to point out that Texas, which is on the NAFTA front lines, has had enormous success, in no part thanks to staying competitive with taxes for individuals and corporations.

Does competition with other countries hurt Ohio's economy? Only so much as to glaringly point out Ohio's political deficiencies in competing on a domestic and global scale. However, it is also important to point out that this is no a problem only for democrats. After all, President Bill Clinton signed NAFTA, and Ohio is not exactly a blue state, with the previous governor being a Republican. However, free trade has turned into the cause célèbre of the democratic party.