Youngstown, Ohio Speech Against Self-Destructive Protectionism Is A Refreshing Show Of Wisdom

Throughout recent years, the Center for Individual Freedom has justifiably challenged many of Senator John McCain’s legislative efforts and policy positions.

From McCain/Feingold, which tramples upon the First Amendment’s unequivocal declaration that “Congress shall make no law … abridging the freedom of speech,” to his concessions on climate-change hysteria, to drug importation, we have called Senator McCain to the mat when necessary.

At the same time, however, we have enthusiastically acknowledged Senator McCain’s heroic service to his country, and applauded his policy positions when such praise was due. Examples include his opposition to wasteful spending and earmarks, his leadership regarding the war in Iraq and his belated affirmation of the remarkable economic benefits of the 2001 and 2003 tax cuts.

And this week, speaking in favor of free trade in economically-battered Youngstown, Ohio, Senator McCain once again earned tribute from conservatives and free-market advocates across America.

Ohio may once again provide the pivotal electoral votes in this year’s Presidential election, but its economic downturn renders it a particularly unfriendly atmosphere for free-trade advocates. Because of this, most politicians would have placated audiences by telling the audience what it wanted to hear, or avoiding economic subjects altogether, particularly free trade. Instead, Senator McCain refused to back down from his advocacy for free trade, just as he once opposed ethanol subsidies before an Iowa audience.

And rightfully so.

Although protectionist sentiment tends to increase during economic downturns, the simple fact is that this supposed remedy only exacerbates the problem. For instance, the infamous Smoot-Hawley Act was a primary cause of the Great Depression.

In contrast, free trade is the driving force behind economic growth and prosperity for all parties involved. As one example, NAFTA has had an overwhelmingly positive net effect upon America. Since its inception in 1994, three-way trade between the United States, Canada and Mexico has increased over 173% to $804 billion in 2005 alone. American exports to Canada and Mexico account for 36% of total American export growth in 2005, and total investment in North America has increased by over $1.7 trillion.

As for jobs, all three countries have benefited. When NAFTA was signed into law in 1994, opponents such as Ross Perot promised a “giant sucking sound” as jobs departed to Mexico. In reality, the opposite has occurred. Since 1994, the United States has enjoyed an unprecedented boom in jobs and wealth, the reverse of what naysayers predicted. Although free trade is often blamed for manufacturing job losses, most of those losses result from mechanization and productivity increases, not export. The fact that China and other supposed thieves of American manufacturing jobs are also seeing declines in manufacturing employment illustrates this fact.

Also this week, Senator McCain rightfully endorsed the proposed free trade agreement with Colombia, which has been a steadfast American ally in a region brimming with such hostile autocrats as Venezuela’s Hugo Chavez. Today, 90% of Colombian exports arrive in the United States duty-free, so they already possess access to American markets. By enacting this agreement, we would simply ensure that over 80% of American products would similarly become duty-free in Colombia.

In other words, the Colombia-United States free trade agreement would be a no-lose proposition for the United States.

Thus, while Democratic candidates Barack Obama and Hillary Clinton continue to throw the kitchen sink at each other and demonstrate their unfitness for the White House, Senator McCain reclaimed some of his “straight talk” status by defending a free trade system that has greatly increased American prosperity and dynamism. What a refreshing change from Obama’s and Clinton’s politically-expedient attacks on the North American Free Trade Agreement (NAFTA) and free trade generally.

Today, fully one-third of the American economy depends upon foreign trade, and 95% of the world’s potential consumers live outside the United States. Consequently, we only harm ourselves if we engage in protectionism and shut ourselves off from the world.

Senator McCain did take care to sympathize with the audience’s hard times, saying, “the men and women of Youngstown know what it feels like to be counted out.” He added that, “you know how it feels to hear that good things are happening in the American economy, they’re just not happening to you.” Despite this, he told the audience that, “the answer to our problems is not the siren song of protectionism,” even delivering the speech at a closed steel plant.

To be sure, too many foreign markets remain unfairly closed to American exports, and too many allow theft of American intellectual property. But shutting ourselves off and closing our markets is not the answer to those problems. Rather, the solution lies in opening theirs and compelling them to observe property rights and the rule of law.

The economic facts speak for themselves.