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Answering Mark

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Mark, you raise two questions. One is about the effectiveness of a moratorium on trade agreements. The other is about the integrity of my arguments. I’ll start with the first.

Yes, the point of the moratorium is to force Davos to the bargaining table. It’s the same logic that a city council might use in having a moratorium on development in order to come up with a land-use plan that would moderate the consequences of unconstrained real estate market.

It may be – as you suggest it might be -- too late. Now that the corporations have gotten most of what they wanted – WTO, NAFTA, China etc. there may not be much of a bargaining chip left. In effect, the developers have already ruined the city. Could be. Only way to find out is to try. If it’s too late, then the possibilities for eventually using the WTO as instrument for labor rights – already remote – disappears. And I would argue, my case to start building a cross-border social contract in North America is strengthened.

To determine if trade agreements “matter,” it’s useful to ask why the American business community, the establishment media and the business wing of the Democratic Party were so intent on imposing these agreements? Why did Clinton split his own party less than a year into his presidency in order to get them? And why does the idea of a moratorium draw such hostility?

One possible answer is that Jamie is smarter about their business than all of these people. Also, could be.

But as I have been writing all week, I think the fundamental reason is that these deals are not primarily about trade. They are about setting the rules of an integrated global economy in ways that favor global corporate interests. So these “free-trade” agreements contain hundreds of pages that give corporations extraordinary protections and rights to escape public regulation. Most important, they give corporations bargaining leverage against workers everywhere. Asking whether NAFTA contributed (or did not contribute) to US productivity boom in the late 90s is asking the wrong question. That was never what the debate was about. The right question is how much did it contribute to strengthening the power of employers over employees – and the erosion of the social contract -- in Mexico, Canada and the US? The answer is, a lot. One strong piece of evidence is that in each of these countries wages stagnated while productivity rose substantially.

Your second question is really whether my work is fraudulent -- deep down intending to be a roadblock to globalization. I intend my response to be civil.

Why is it that in these globalization discussions among college educated professionals, it is always the integrity and motivation of those who challenge the corporate line that is suspect? You certainly have the right to argue that my policies would hurt poor Chinese. But if you have read what I’ve written, just here this week, how could you possibly suggest that I want to keep them poor?

Have you asked Brad DeLong and other free-traders if they want to see children in India go blind making rugs, union activists tortured and murdered in Columbia, women workers locked inside filthy factories in China? Or laid off manufacturing workers commit suicide in the US? Of course not. Then why ask me to prove to you that I don’t want to keep the Chinese poor?

Oh, you say, because argument against NAFTA wasn’t “serious”. Whose argument? Of course there were people who didn’t want NAFTA under any conditions. Just as there were people who blathered about “free trade” to cover their desire for sweatshops, docile workers, the suppression of the Mexican left and their grabbing of Mexico’s banking system. It’s a measure of the pervasiveness of class in our culture that “liberals” begin a discussion about globalization with the assumption that political virtue lives on Wall Street and political vice at the AFL-CIO.

If anything, the argument for NAFTA was the less serious. It was based on promises of jobs, reduced immigration and prosperity among the Mexican poor that promoters knew were false when they made them.

It was a crappy deal for workers in all three countries. Why such contempt for people who turned out to be right?

Does the global economy need a global social contract, and if so, how do we get it? If you think these are important questions, my answers on how to start – a moratorium, labor rights conditions for fast-track, and a cross-border political movement for North America – should be judged on their own merits.


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Bravo Jeff. Thanks for these important posts on our trade regimes. And thanks for keeping the political in political economy. I hope folks here think about the implications of your statement: "It’s a measure of the pervasiveness of class in our culture that “liberals” begin a discussion about globalization with the assumption that political virtue lives on Wall Street and political vice at the AFL-CIO."

Certain "liberals" don't even use the word worker anymore. In their world of Thom Friedmanese, we are all "associates" and share in the expanding economies.In the "ownership society", we are united in our love for productive property and rent.Jeff is talking about the world our children are going to have to live in and I applaud the effort to think large.

I'm sold. So what's the cross border political movement look like? Is it Mexican and American unions? Blog communities? How does it work? Who in Mexico wants to talk? Who in American wants to talk? Does the movement speak in English or Spanish? I'm serious.

What is the cross border workers issue that can bring people into the streets the way that the immigration issue did last year? How does such a movement have political power in one country when a significant part of its organization is in another?

Is this movement already happening somewhere?

Bravo Jeff Mostly, altho I would say "why any Non-Constitutional 'fast track' under any circumstances?"

When we (the people of the world Social Forum, to put a face on it) have worked ot a new social contract with broadly-agreed-on rules for migrations, THAT treaty will be able to survive a debate in Congress too and all the stupid excuses for fast-track are un-necessary

We've GOT TO stop the bad stuff before we can even think about working on the good stuff, given the current distribution of social, financial, and state power in the world ...

I'm fairly cyncial we can do much toward the first goal before the unexpected breakdowns of global warming and other mass pollution -- all of which can be seen as "externalities" of western capitalism -- overwhelm us, but let's be optimistic and give the best fight we can for our children's sake ...

Jeff, you're basically unhinged. You're living in a dream world. Fictional characters, fictional problems, fictional solutions.

I kind of surprised you're blowing up at Mark for arguing unfairly when Delong came out and called all of us who challenge the free-trade gospel a bunch of racists. The spit always flies to the left. Just as the right can be uncivil and unfair attacking the center-left, which said center-left doth mightily protest but seldom retaliate, the center-left spits on those further left.

Reece says:

Jeff, you're basically unhinged.

...and concludes his analysis of Mr. Faux's arguments with twelve clever words, none of which address any of the arguments Faux makes in a piece of some length, written with passion and clarity.   

Mr. Faux is quite capable of defending himself.  But I write because I believe this kind of argument degrades the whole debate.  One can disagree without resorting to ad hominem assaults, and a well argued, documented disagreement helps everyone, including the original author, to the extent that it forces that author to sharpen his/her argument.  But this kind of response helps nobody.

aMike

One thing is absolutely clear. When negotiators promise to address labor, environmental, or human rights issues in later side agreements, they are lying. It never happens. At this point, we all have to assume that trade agreements will remain static the moment they are approved. Once businesses and investors get what they want, the rest of us are screwed. And I agree that sometimes no deal is better than the deal being offered. We should consider opting out of current trade pacts unless they are reopened for changes. I don't have a problem with "fast track" as long as the Senate has the courage to just say no and send the administration back to the bargaining table. Right now, I don't see that kind of courage.

To determine if trade agreements “matter,” it’s useful to ask why the American business community, the establishment media and the business wing of the Democratic Party were so intent on imposing these agreements?

Or even bringing them up for a Democratic vote.

And why does the idea of a moratorium draw such hostility?

Because it's reactionary?

But as I have been writing all week, I think the fundamental reason is that these deals are not primarily about trade. They are about setting the rules of an integrated global economy in ways that favor global corporate interests. ,

Or, lowering the barriers of trade between countries. Whatever floats your boat.

Why is it that in these globalization discussions among college educated professionals, it is always the integrity and motivation of those who challenge the corporate line that is suspect?

Because of much of the empirical research on the benefits of liberalized trade, combined with the fact that many of it's supporters, including quite leftish economists (James Galbraith supported NAFTA) can hardly be painted as taking the "corporate line" combined with the fact that many trade reactionaries have a long history of arguing in bad faith.

But if you have read what I’ve written, just here this week, how could you possibly suggest that I want to keep them poor?

I don't think you want to keep the Chinese poor, I think you could care less about the Chinese. All else equal you probably find the idea of a Chinese worker becoming wealthier mostly unoffensive. But if it means an American worker, particularly one affiliated with organized labor, has to compete for a job with an equally talented Chinese worker, you'll do anything you can & argue rrom any angle, good faith or bad to spare him that indignity.

Oh, you say, because argument against NAFTA wasn’t “serious”. Whose argument?

Yours?

Of course there were people who didn’t want NAFTA under any conditions.

You don't say!

If anything, the argument for NAFTA was the less serious. It was based on promises of jobs, reduced immigration and prosperity among the Mexican poor that promoters knew were false when they made them.

Really? Brad DeLong helped work on NAFTA, he seems to think it had enormous potential for Mexico and has since been disappointed with the pedestrian results. I wonder if he'll show back up so we can ask him if he was lying & new his hopes were false all along.

It's been a pleasure. Of all trade reactionaries I follow, you are my sole favorite & have been ever since I heard you hyperventilating against Gene Sperling.

Meh. Most of Jeff's arguments don't even pass the straight face test. I'm not going to pretend these are important discussions when they are so clearly risible. Is this response helping anybody? Is your response helping anybody? Are Jeff's rants helping anybody? Nope. Sorry to break it to you, but the internets aren't going to produce any policy shifts any time soon. And they certainly aren't going to lead to a "transnational political movement that unifies all working people in a single consciousness" or whatever claptrap Faux is shilling.

Is there an assumption that governments make the standards and transnational corporations compete within those standards? The reality is that corporations are the ones who make the standards – no unions, few environmental restrictions, no anti-trust regulations – and countries compete against each other to meet those standards in order to host production facilities.

That is "free trade" in corporate business terms.

This is an argument?:

To determine if trade agreements “matter,” it’s useful to ask why the American business community, the establishment media and the business wing of the Democratic Party were so intent on imposing these agreements?

Or even bringing them up for a Democratic vote.

Faux quite legitimately and quite convincingly destroys the argument that trade agreements don't "matter", mad by proponents, by pointing out how fiercely their proponents fight for them.

How does your snarky little remark answer that an any way? It does not.

I'm not going to pretend these are important discussions
I'd like to help you out. Which way did you come in?

I find this long exchange highly revealing.

While people pretend to talk macroeconomics they are really talking about values. Hence, the ad hominems, the charge of racism, or of being "reactionaries." Doesn't sound much like Econ 101, does it?

Jeff touched a nerve. The problem with the Davos crowd (I prefer to call it the Tom-Friedman crowd, but that's my mean streak) is not that they sang the praises of globalization but that they elevated it to cult status.

They know the cult failed but they're still clinging to the dogma. That makes Brad sound about NAFTA a bit like Bush about Iraq. Yeah, yeah, we screwed up but the idea was great!

Jeff asked: what was so great about it?
And the response has been a litany of semi-hysterical name calling; in other words, the response has been dumb.
Almost worthy of Tom Friedman.

I like Jeff's approach because it's about preserving and extending the hard fought worker and progressive victories that created the American middle class we have now. The American middle class isn't a necessary outgrowth of American capitalism, just as a global middle class isn't a necessary outgrowth of global capitalism. American workers and other progressives fought and died to make American capitalism more just. I percieve's Jeff's vision to be the creation of a global (or regional for now) political movement that takes the society remade by global capitalism and makes it more just and fair for everyday people. That is no more pie in the sky than the dreams of the American labor and progressive movements in the 1880-1890s.

So, if you don't believe in that vision, fine. Do something else. But the cafe is a great place to start discussing the tactics and mechanisms of creating a regional political movement that may make transnational capitalist society more just and fair.

John

Well said.

To which I would add that this. The Party of Davos has been around for centuries. (The only difference is the skiing.) Europe in 1914 was more "globalized" than Asia is now. And here is what we know:

The Party of Davos has never lifted a finger to make the system more "fair and just." Every single gain has been the work of organized labor and politicians responding to their constituency.
Corporate interests have always acted as "reactionary" forces.

So, for example, when Cheney and his energy pals meet in secrecy to decide our future, it's not JUST that we don't like Cheney and we don't much like the obese Exxon guy who funds the AEI.

It's that we know from history that those guys have never looked out for anyone besides themselves.

So when Tom Friedman flies first class to Davos and emails his column telling us that you and the CEOs of Yahoo and Infosys are all in the same boat, well, I just laugh and murmur: Thus Speaks the Clown.

Agreed.

I think one reason that there is silence on the political tactics and organizing principles for a transnational progressive movement is that no one has a clue had to make this work.

Some quick ideas:

1. Communication: there has to be a relatively easy way for progressives and workers in the United States to talk with progressives and workers in Mexico and Canada. Blogs are good. But are there any bilingual blogs that work?

2. Organization: Who's doing what today? Are the successful service unions in the US talking to the unions in Mexico and Canada, or are they at war with them? I don't know. Does Change to Win have a counterpart in Mexico? Do progressive intellectuals in the US talk with their Mexican and Canadian counterparts about this subject?

3. Common goals: What is something that American, Mexican, and Canadian workers can unite around? What are five issues that unite us?

If anything, the argument for NAFTA was the less serious. It was based on promises of jobs, reduced immigration and prosperity among the Mexican poor that promoters knew were false when they made them.

Really? Brad DeLong helped work on NAFTA, he seems to think it had enormous potential for Mexico and has since been disappointed with the pedestrian results. I wonder if he'll show back up so we can ask him if he was lying & new his hopes were false all along.

I was in favor of NAFTA, because of the arguments of DeLong and others. I felt I was misled. I think it was this Uchitelle article that convinced me of this(behind the wall, so I can't check it now, link http://tinyurl.com/ynmlne).

This article said that the American approach to NAFTA was not anything like what was happening in the European Union. In Europe the richer companies paid directly for infrastructure development in poorer countries in order to encourage development and equitable trade.

The free-market ideologues over here dominate the liberal economists to a sickening degree. I had no idea when NAFTA was being pitched that it was unreasonable to just expect the 'free market' to take care of the inequalities in infrastructure and the like that exist between Mexico and us.

The pitch - deeply misleading! contrary to historical evidence! contrary to what was happening in Europe! - was that the free market all be itself would simply take care of this. Brad DeLong bears some real responsibility for that misleading pitch.

If the truth had been told to the American people, that we would have to directly invest in Mexico in order to make NAFTA work, it would not have been passed.

As to your number 2: Change To Win has made global organizing a priority, and by doing so has kicked AFL-CIO to do the same. It's a project still in relative infancy, but it is underway.

--

"There's no telling what new harm Bush might do
if he ever gets back up off the mat.
You have to keep your knee on his windpipe
until the danger is past." -- Garry Trudeau

A commenter at C&L where this post is highlighted currently notes:

NAFTA was rammed through Congress by Rahm Emanuel during Clinton's years, over strong bi-partisan objection. He was "also a point man for the [Clinton] Administration in fights with unions over granting China most-favored-nation trading status and over fast-track negotiation of a hemispheric free-trade-area agreement that union leaders call 'NAFTA on steroids.'"
http://www.thenation.com/doc/20020401/nichols
http://mediafilter.org/caq/CAQ54nafta.html

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