Free Trade: O Reaps What He Sows

A recent WSJ story struck my eye as an excellent illustration of the concept that you reap what you sow. The story reported that Senate Majority Leader Harry Reid (D-NV) -- normally Obama's loyal lickspittle -- had broken ranks with the White House on free trade. The background is delicious.  Throughout his brief political career, Obama has parroted the line favored by big labor and leftist populists -- viz., that free trade "costs jobs," a view most economists dismiss as the "lump of labor" fallacy.  Yes, whenever goods flow in from another into ours, some jobs may be temporarily lost, but as more of our goods flow to that country, more jobs get created here, and as prices drop for American consumers, those consumers have more money to spend elsewhere, again creating more jobs. Obama cheerfully used the lump of labor fallacy as a way to bash his then-primary opponent Hilary Clinton, whose husband had signed into law NAFA, which big labor and populist...(Read Full Article)