The news cycle of late has returned to the Trans-Pacific Partnership free trade deal or more commonly known as the TPP. The deal has been a very contentious issue in the eye of the public and has created quite strange bedfellows on Capitol Hill. As it stands now, four out of five American voters, including independents, Democrats and Republicans, hold the belief that we should be “buying American” because it creates U.S. jobs. Unfortunately this isn’t the most productive use of our hard earned money and it doesn’t bring the benefits to the economy that we would like to see.
People fear imports because they think it will send all of the American jobs overseas. The reality is it will only send the jobs which can be done cheaper after shipping and everything else has been calculated in. Plenty of American manufacturing jobs are more efficient here and produce better products here for a near equal price therefore they won’t go overseas just because we have a new free trade deal. Furthermore, even if we spend money on foreign goods say Japanese cars, the Japanese then take that money and spend it on investments in America or spend it in America. Which means the money comes back and creates jobs here.
Dawn J Bennett has been surprised by Americans lack of education on this topic and brought Don Boudreaux on to her radio talk show to discuss the TPP in greater detail and explain how it can help Americans and improve the American economy. Boudreaux says one of the reasons we see a lot of members of Congress against the TPP is because it may mean a loss of jobs for some people in their region. However for America as a whole there will be a net benefit and this is the bird’s eye perspective that President Obama is viewing the TPP from. Unions have also made the TPP out to be some sort of evil jobs killer because they are afraid of having to face more competition in the past which may mean giving up some of the benefits they’ve had.
Another major concern for many Americans is the issue of the deal being fast tracked, but once again there is a lack of understanding about what this means. The deal being fast tracked means while details are being discussed about the TPP they aren’t under the constant scrutiny of Congress and narrow focused politicians who are only thinking about their regions. Even when the deal is done though, it will still have to go before Congress where it will be reviewed and voted on. This means no ‘fast one’ can be pulled on the American people and everyone will have a chance to actually see the details of this agreement.
Many Americans are also worried the TPP will give corporations too much power over a country’s government and their laws. There is also a question of whether this trade deal will only benefit special interests and be another slap against Main Street and due to the current secrecy on hammering out details on the TPP rumors such as this have run amuck. If any of these issues are as severe as news pundits are predicting when the deal does get revealed then Boudreaux says Congress will hopefully make the right decision and not pass the deal.
One of the most important benefits is the strategic leverage it will provide America in East Asia. The biggest controversy of the TPP now is whether Malaysia should be allowed due to the issue of slavery existing in the country. What many Americans don’t realize is that a large percentage of world trade passes through the straights surrounding Malaysia and maintaining a strong U.S. presence there helps protect American and international interests from being engulfed by China’s recent power expansion. Hopefully, more Americans will educate themselves on the effects of free trade and begin to understand the widespread benefits it will bring in the long run.
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About Dawn Bennett
Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She hosts a national radio program called Financial Myth Busting http://www.financialmythbusting.com
She discusses educational topics and events in the financial news, along with her thoughts on the economy, financial markets, investments, and more with her live guests, who have included rock legend Ted Nugent, as well as Steve Forbes and Grover Norquist. Listeners can call 855-884-DAWN a as well as take podcasts on the road and forums for interaction.
She can be reached on Twitter @DawnBennettFMB or on Facebook Financial Myth Busting with Dawn Bennett or firstname.lastname@example.org