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Tuesday, May 17, 2005

CAFTA Will Make Us Richer

David Ricardo's studies on "comparative advantage" proved almost 200 years ago that free trade benefits each side of the trade equation. We have an opportunity to increase our wealth in America by pushing through CAFTA.

Kemp on CAFTA:

About 80 percent of imports from the CAFTA countries already enter the United States without tariffs under the Caribbean Basin Initiative and the Generalized System of Preferences...The strongest opposition to the agreement comes from the politically influential sugar industry, which has a racket where it donates millions of dollars to politicians in exchange for billions of dollars of taxpayer and consumer money. Ironically, CAFTA was designed with a carve-out for sugar that would allow only a token increase in imports, yet the industry is still dead set on killing the agreement.

People need to realize that it is not governments that grow richer from these agreements. It all of us little individuals who can purchase more goods for fewer pieces of paper (money). When that happens we become richer individually. Let us force ingenious Americans to work harder, smarter and more efficiently through competition, and the unemployment rates will fall while income continues to grow.

1 Comments:

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