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Educating Americans on Free Trade

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.

Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients’ as they seek long-term financial success. Its customized programs are designed with the potential to help grow, lower overall risk and conserve client assets by delivering a high level of personalized service and skill.

 

For more information, call 866-286-2268 or visit http://www.bennettgroupfinancial.com

Securities offered through Western International Securities Inc. (WIS), member FINRA/SIPC. BGFS and WIS are separate and unaffiliated entities.

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 dbennett@bennettgroupfinancial.com

The 2016 Presidential Race Has Begun

With candidates for both the Republican and the Democratic parties having thrown their hats into their respective arenas the scrutinizing of these candidates can commence.  A lot of questions regarding social issues, economic matters and foreign policy are going to be blazing from all sectors of the spectrum, but today we are going to focus on what should be the number one issue; the economy.  The economy despite the “good job reports” isn’t actually as healthy and strong as we would like to believe.  Our trade deficit is at its highest in the last six years and numerous other important indexes, such as the Baltic dry index have been giving less positive reports.

Financial myth buster expert Dawn J Bennett is looking to cut through the new Republican candidates for president and see which ones will be true free market capitalists.  In order to helper her sleuth through the candidates rhetoric and their values she invited Jonathan Hoenig, a founding member of Capitalist Pig and a regular contributor on Fox News’ Cashin’In, Your World with Neil Cavuto.  Dawn J Bennett decided to focus her questions on Rand Paul and Ted Cruz and whether or not they really believe in free market capitalism and would have the gumption to push for changes that help bring the U.S. closer to this ideal.

Jonathan says he’s hopeful about both candidates but said there will be a lot of work for them when trying to achieve this goal.  To obtain free market capitalism the first thing that will need to happen is the repeal of the IRS, Medicaid and Medicare.  He says he’s been hearing people talk about repeal of the IRS and believes that it should be replaced with a flat tax that hits all Americans equally.  This will remove the loopholes within the current system and make it far fairer; it will no longer server as a system for wealth redistribution.  At the same time it would eliminate large chunks of government bureaucracy which would reduce costs on the government and help get it out of every part of people’s lives.

As for Medicare and Medicaid, Jonathan is less positive on those fronts.  He believes that too many people still want to keep these government benefits around and  being able to rally enough political support to remove them won’t happen soon.  Dawn J Bennett and he lamented at how both of these programs cause the market to be imbalanced and therefore inefficient.

Dawn then steered the subject towards Hillary Clinton’s recent comment about getting the money out of politics despite planning to raise $2 billion for this upcoming presidential election.  Jonathan said he would be happy to see the money in politics go away but so long as government is so intricately involved in the economy this will never happen.  As it stands now a business can use its money and influence to damage their competition by lobbying because of government involvement in the economy.  As long as this exists businesses will have to be crazy not to get involved in lobbying.  Once we extricate government from the business equation and return its focus to social issues we will see money in politics dry up.

Jonathan and Dawn wrapped it up with how even though discrimination is negative, it is a part of freedom of speech and if businesses want to practice it then they should be allowed.  It is a bad business call and other businesses will gladly take the business those discriminating businesses reject, but to have the government come in and tell businesses what they can and cannot do is a waste of taxpayer money and an invasion of our freedom.

Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients’ as they seek long-term financial success. Its customized programs are designed with the potential to help grow, lower overall risk and conserve client assets by delivering a high level of personalized service and skill.

For more information, call 866-286-2268 or visit http://www.bennettgroupfinancial.com

Securities offered through Western International Securities Inc. (WIS), member FINRA/SIPC. BGFS and WIS are separate and unaffiliated entities.

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 dbennett@bennettgroupfinancial.com

Does Hosting the World Cup Help or Hurt the Host Country?

Founder and CEO of Bennett Group Financial, Dawn Bennett, recently reviewed the FIFA World Cup and whether or not it’s worth hosting.  Her review of the benefits the World Cup brings to a country is not hopeful.  According to her, the Brazilian economy is going to be facing trouble once the World Cup is over.  The problem she explains is FIFA doesn’t care at all for the host country’s economy or the costs required for hosting the tournament.  FIFA will pocket a cool $2 billion in profit, but the Brazilian economy won’t see a penny of those profits.  Meanwhile Brazil will have wound up spending well over $318 million just for the stadium that was built for the finals.  Did anyone mention that the stadium isn’t even accessible by road.

Unfortunately for Brazilians, instead of paying attention to the upcoming presidential election in October, their attention will be trained on the World Cup, which means voting for important issues will be out of the media for a long time.  This is dangerous for Brazil because they have had a growing number of financial issues, the same as America.  They are facing high unemployment, dwindling growth, above-target inflation and more.  These are all issues that America is facing as well and is hurting our economy says Dawn J Bennett.  Furthermore, Brazil’s inflation is tumbling further and further out of control.  It rose at a rate of .46 percent in May alone, causing fear with economists and causing them to downgrade the country’s growth forecast.

The US is seeing a similar problem as well, as it continues to grow at a rate of negative 1% GDP says Bennett.  The problem with both economies as Bennett sees it, is they’ve tried to ignore the basic laws of math.  The governments are trying to prop their currencies up to make them look better.  When you look at the skewed reality though of weak economic growth, record-high valuations, incredibly high stock earnings, poor consumer confidence, lack of retail buying and other more you see an economy that is completely unbalanced.

These continued discrepancies should be setting off warning bells for investors.  They should be as vulnerable as the correction of 2008, but with stocks continuing to rocket forward despite stagnant wages, lack of consumer spending and other issues, something isn’t adding up.