Chutzpah. I believe that’s the word for it.
Just days after learning the Americans have been tapping her phones and taping her conversations, Angela Merkel has been publicly upbraided by the U.S. Treasury for being a bad global citizen.
What did she do to deserve this?
Merkel just won a third term as chancellor with a record vote and has an approval rating near 80 percent. But she is a bad global citizen because Germany is running the world’s largest trade surplus.
The Washington Post thinks the Treasury’s tongue-lashing is overdue, as does Paul Krugman of the New York Times:
“In this environment, a country that runs a trade surplus is ... beggaring its neighbors. It is diverting spending away from their goods and services to its own, and thereby taking away jobs.”
Is this not astonishing?
Competing successfully in world markets is now tantamount to stealing food off the table of one’s less-competent and less-successful neighbors.
By this standard, America was a selfish nation and a rotten global citizen for the first seven decades of the 20th century, when we ran trade surpluses every year, averaging 4 percent of GDP.
From the Civil War through the Roaring ‘20s, with a high tariff, we became the mightiest manufacturing power the world had ever seen. Our economic independence enabled us to stay out of two world wars. And when we did go in, we won within months in 1918, and we won again only a few years after Pearl Harbor.
Is this a record to be ashamed of?
Every modern nation that has risen to world power has done so through economic nationalism: Britain under the Acts of Navigation; the United States under protectionist Republicans from 1860-1914; Bismarck’s Germany; postwar Japan, which rose from the ashes of 1945 to become the world’s second economy; and China from 1980 to today.
Trade surpluses, run at the expense of rival powers, have been the hallmark of great nations in their rise to preeminence.
Though Germany is smaller than Montana, with a population not a fourth that of the United States, she is the powerhouse of the European Union, makes some of the finest products on earth, and sells abroad one-third of all she produces. Her unemployment rate is only 5 percent.
Why is that not a record to be admired? And whom are the Germans supposed to emulate? Answer, if you can believe it, Obama’s America.
The Post and Krugman feel the Germans must shake off their habit of working and saving and start spending to get Club Med countries like Spain and Greece out of intensive care. The Post wants Merkel to embrace the Social Democrats’ idea of raising the minimum wage to $11.50 an hour, which was too rich even for the mayor of D.C.
The need, says Treasury, is for “rebalancing.”
Basically, what the globalists want is for prudent counties with trade surpluses to start running deficits to get money flowing, like transfusions, into the moribund economies.
Where as “Engine Charlie” Wilson reportedly said, “What’s good for General Motors is good for the country,” the globalists retort, “What’s good for the global economy is good for America.”
But is this true? From their behavior in recent decades, neither the Chinese nor Japanese nor Germans, proprietors of the second, third and fourth largest economies on earth, buy into this ideology.
And how has America’s conversion to globalism, since George H.W. Bush proclaimed the coming of the New World Order, worked out for us?
From 1989 to 1993, Bush 1 ran $360 billion in trade deficits in goods, a U.S. record.
Bill Clinton, who enlisted the Republican establishment to help ratify NAFTA and U.S. membership in a World Trade Organization where the United States has the same vote as Armenia, ran $1.8 trillion in trade deficits.
Clinton’s deficits were then dwarfed by George W. Bush’s, who ran up $5.3 trillion in trade deficits in goods.
In four years and eight months, Obama has piled up trade deficits totaling more than $3 trillion.
Thus, during 25 years of free-trade globalism, the United States has run up well over 10 trillion, or ten thousand-billion, dollars in trade deficits in goods.
And what do we have to show for it?
Our economic independence is history. We rely on foreigners for the necessities of life. We are the greatest debtor nation in history. Beijing and Tokyo bank scores of billions in annual interest payments on the T-bills and Treasury bonds they hold. And as the gleaming cities of Asia rise, America’s infrastructure visibly crumbles.
The real wages of our working men and women have not risen in decades. In the first decade of this century, we lost 6 million manufacturing jobs as 55,000 factories disappeared.
Why should successful Germans emulate the folly of the failed American politicians responsible for the decline of the greatest republic in the history of mankind?
Patrick J. Buchanan is the author of “Suicide of a Superpower: Will America Survive to 2025?” To find out more about Patrick Buchanan and read features by other Creators writers and cartoonists, visit the Creators webpage at www.creators.com.
Chutzpah. I believe that’s the word for it.
Compromise is not that simple
It’s tempting for a casual onlooker to wonder why the Democratic House and Republican Senate can’t make what on the surface looks like the obvious compromise on pension reform.
The Senate passed a measure based on recommendations of a task force to move new employees into a hybrid, cash-balance plan but maintain existing defined benefits for current employees and retirees.
Frankfort plays ping-pong with public pension transparency
Legislation that would make the Kentucky Retirement Systems transparent for those paying its bills has danced into the spotlight during the 2014 session of the Kentucky General Assembly.
Passage of transparency bills filed by Sen. Chris McDaniel, R-Latonia, and Rep. Robert Benvenuti, R-Lexington, would make the “names, status, projected or actual benefit payments” subject to our commonwealth’s superlative Open Records Act.
The case of the ghostly neighbor
Wilbur lived in a world of fears. Everything frightened him. The full extent of his courage was to admit that he had none.
Noises in the middle of the night, his own shadow creeping up on him and, most of all, black cats scared the wits out of him.
So, picture his chagrin, one day, when he came home from vacation only to discover that a mausoleum had been erected on property adjacent to his home.
Provisional concealed-carry law passes Senate unanimously
Things are staying busy in Frankfort. Many bills are making their way onto the Senate floor from various committees. This past week several important pieces of legislation were debated and passed.
I am particularly proud of the success we had in advocating for Kentuckians’ Second Amendment rights.
I introduced Senate Bill 106 to allow anyone who has been granted an emergency protective or domestic violence order to receive a provisional CCDW permit from the Kentucky State Police in one business day. In some of these cases, victims need this type of protection as quickly as possible.
50 years makes a world of difference
I wasn’t in Frankfort on March 5, 1964, when Dr. Martin Luther King Jr., Ralph Abernathy, and Jackie Robinson led 10,000 on a march to the state Capitol in support of a public accommodations law.
But a few months later, I stood in front of the “Music Hall,” site of the Glasgow Junior High School located on a street named Liberty, and watched black kids “walk up the hill” of College Street on the first day of integrated schools in Glasgow.
Coal has kept Kentuckians warm this winter
This winter, temperatures across the country dipped to historic lows. Here in our home state of Kentucky, the near-arctic climate caused increased power demand which resulted in an incredible strain on the electric grid and rising energy costs.
Protecting citizens’ data is a no-brainer
Target Corp. is learning the hard way: The price is steep for retailers who don’t protect customers’ sensitive financial information.
Target’s profits fell a whopping 50 percent during its fourth quarter of 2013 as the result of a massive security breach involving as many as 110 million of its customers’ credit- and debit-card accounts, which began the day before Thanksgiving and extended throughout much of the holiday shopping season.
Making plans for spring planting
My brother Keith (Keeter) probably planted peas on one of those warm days last week, and I would not be at all surprised to find out that brother Steve did likewise to try to be the first two fellows in Letcher County to actually be digging the soil in their 2014 gardens.
Keeter’s father-in-law, the late Dock Mitchell, used to get my brother to drive him a 50-mile round trip to get pea seeds and potting soil for early February planting. Dock raised mammoth melting sugar snow peas and sugar snaps around every fence on the place.
Cynicism, optimism both on display in Frankfort
Those who spend little time in Kentucky’s Capitol and who read columns by cynics who cover it should be forgiven their disillusionment about how the people’s business is conducted.
Even Scrooge would enjoy library mystery
Saturday afternoons and evenings are usually down time for Loretta and me.
We simply don’t get out much after we’ve used up the movie gift certificates the kids gave us for Christmas. That means we mostly go to the movies to avoid guilt trips because our kids do work hard for their money.
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