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Bernanke Warns Against Protectionism

The purpose of capitalism is to create wealth, not

2006-08-29, 9:58 pm

Jackson, Wyo. (AP) - Federal Reserve Chairman Ben Bernanke cautioned lawmakers to avoid the temptation to impose protectionist trade policies as the United States grapples with fierce competition from globalization.

Globalization has shrunk the world and made countries increasingly connected through economic ties. The opportunities for companies to sell their goods to more and more countries can generate wealth and boost living standards. That has benefited some work
ers, but has hurt those left behind in the changing worldwide economic landscape.

"Further progress in global economic integration should not be taken for granted," Bernanke told an economics conference that explored the forces of globalization.

"Geopolitical concerns, including international tensions and the risks of terrorism, already constrain the pace of worldwide economic integration and may do so even more in the future," he told the gathering organized by the Federal Reserve Bank of Kansas
City.

Bernanke's remarks came amid higher trade tensions between the U.S. and China, and as global trade talks have stalled. Americans also are increasingly anxious about the potential of losing their jobs to workers in China and India, two emerging economic gi
ants.

Against that backdrop, U.S. lawmakers -- as they have through the years -- may be tempted to enact protectionist measures to try to slow globalization.

Bernanke said that would be unwise.

"The challenge for policymakers is to ensure that the benefits of global economic integration are sufficiently widely shared -- for example, by helping displaced workers get the necessary training to take advantage of new opportunities," he said.

New technologies and faster communication make it easier for companies to look beyond national borders for cheaper workers. In the U.S., factory jobs have been lost to overseas competition or moved offshore, and some service-sector jobs have moved oversea
s.

President Bush wants to sharpen America's competitive edge by bolstering math and science education, and encouraging research and development.

The United States racked up a record $716.7 billion trade deficit last year, the fourth year running in which the deficit swelled to an all-time high. Last year's imbalance with China alone mushroomed to $202 billion, the largest ever with a single countr
y.

Lawmakers in Congress have suggested hefty tariffs on Chinese goods, among other measures, to clamp down on China and its currency practices. Critics contend China is keeping its currency artificially low, giving it an unfair trade advantage, hurting U.S.
exports and contributing to the loss of U.S. factory jobs.

Bernanke didn't mention specific protectionist measures, but rather spoke in general terms.

The Bush administration says free trade is good for the country and that lowering barriers for U.S. companies to compete abroad gives the companies more opportunities to sell their products. Democratic critics say soaring U.S. trade deficits show Bush's p
olicies aren't working.

Bernanke acknowledged there are challenges.

"The emergence of China, India and the former communist-bloc countries implies that the greater part of the earth's population is now engaged, at least potentially, in the global economy," Bernanke said. "There are no historical antecedents for this devel
opment. "

He said Christopher Columbus' voyage to the New World ultimately led to enormous economic change, but it took centuries for the New and Old Worlds to economically integrate.

"In contrast, the economic opening of China, which began in earnest less than three decades ago, is proceeding rapidly and, if anything, seems to be accelerating," he said.

Bernanke's speech marked his first address to a high-profile economics conference as chairman of the central bank. A well-respected economist, longtime professor and a former Fed member, Bernanke succeeded longtime Fed chairman Alan Greenspan.

Allan Meltzer, a professor at Carnegie Mellon University, viewed Bernanke's speech as "making a good case for free trade."

Bernanke avoided discussion of the future course of interest rates in the United States. With his guidance, the Fed this month halted the longest unbroken stretch of interest rate increases in recent history. The Fed had steadily boosted rates since June
2004 to fend off inflation.

But with the economy losing steam, the housing market

Video61@tcq.net

2006-08-30, 6:57 pm

The purpose of capitalism is to create wealth, not jobs!!! wrote:
> Jackson, Wyo. (AP) - Federal Reserve Chairman Ben Bernanke cautioned lawmakers to avoid the temptation to impose protectionist trade policies as the United States grapples with fierce competition from globalization.
>
> Globalization has shrunk the world and made countries increasingly connected through economic ties. The opportunities for companies to sell their goods to more and more countries can generate wealth and boost living standards. That has benefited some wo
rkers, but has hurt those left behind in the changing worldwide economic landscape.
>
> "Further progress in global economic integration should not be taken for granted," Bernanke told an economics conference that explored the forces of globalization.
>
> "Geopolitical concerns, including international tensions and the risks of terrorism, already constrain the pace of worldwide economic integration and may do so even more in the future," he told the gathering organized by the Federal Reserve Bank of Kans
as City.
>
> Bernanke's remarks came amid higher trade tensions between the U.S. and China, and as global trade talks have stalled. Americans also are increasingly anxious about the potential of losing their jobs to workers in China and India, two emerging economic
giants.
>
> Against that backdrop, U.S. lawmakers -- as they have through the years -- may be tempted to enact protectionist measures to try to slow globalization.
>
> Bernanke said that would be unwise.
>
> "The challenge for policymakers is to ensure that the benefits of global economic integration are sufficiently widely shared -- for example, by helping displaced workers get the necessary training to take advantage of new opportunities," he said.
>
> New technologies and faster communication make it easier for companies to look beyond national borders for cheaper workers. In the U.S., factory jobs have been lost to overseas competition or moved offshore, and some service-sector jobs have moved overs
eas.
>
> President Bush wants to sharpen America's competitive edge by bolstering math and science education, and encouraging research and development.
>
> The United States racked up a record $716.7 billion trade deficit last year, the fourth year running in which the deficit swelled to an all-time high. Last year's imbalance with China alone mushroomed to $202 billion, the largest ever with a single coun
try.
>
> Lawmakers in Congress have suggested hefty tariffs on Chinese goods, among other measures, to clamp down on China and its currency practices. Critics contend China is keeping its currency artificially low, giving it an unfair trade advantage, hurting U.
S. exports and contributing to the loss of U.S. factory jobs.
>
> Bernanke didn't mention specific protectionist measures, but rather spoke in general terms.
>
> The Bush administration says free trade is good for the country and that lowering barriers for U.S. companies to compete abroad gives the companies more opportunities to sell their products. Democratic critics say soaring U.S. trade deficits show Bush's
policies aren't working.
>
> Bernanke acknowledged there are challenges.
>
> "The emergence of China, India and the former communist-bloc countries implies that the greater part of the earth's population is now engaged, at least potentially, in the global economy," Bernanke said. "There are no historical antecedents for this dev
elopment. "
>
> He said Christopher Columbus' voyage to the New World ultimately led to enormous economic change, but it took centuries for the New and Old Worlds to economically integrate.
>
> "In contrast, the economic opening of China, which began in earnest less than three decades ago, is proceeding rapidly and, if anything, seems to be accelerating," he said.
>
> Bernanke's speech marked his first address to a high-profile economics conference as chairman of the central bank. A well-respected economist, longtime professor and a former Fed member, Bernanke succeeded longtime Fed chairman Alan Greenspan.
>
> Allan Meltzer, a professor at Carnegie Mellon University, viewed Bernanke's speech as "making a good case for free trade."
>
> Bernanke avoided discussion of the future course of interest rates in the United States. With his guidance, the Fed this month halted the longest unbroken stretch of interest rate increases in recent history. The Fed had steadily boosted rates since Jun
e 2004 to fend off inflation.
>
> But with the economy losing steam, the housing market

ing, job growth slowing and consumers turning cautious, the Fed decided to take a breather to assess how its previous rate increases -- which take time to work their way through the economy -- ar
e affecting economic activity.
>
> The Fed's goal is to raise rates enough to thwart inflation, but not so much that the economy is crippled. The Fed's next meeting on interest rates is Sept. 20.
>
> http://www.truthabouttrade.org/article.asp?id=6229
>
>
> -=-
> This message was sent via two or more anonymous remailing services.

i will try a different tack with this idiot, swearing last time did
not show up.
capitalism is a economic system, not a political system. americas
constitution makes no mention of capitalism, but has a bill of rights,
and a declaration, preamble, and constitution that means we the people
can decide what we want.
in those documents it says to promote the general welfare of its
citizens, not just a few wealthy citizens, all its citizens. it makes
no mention of corporations either.
so if you run a country for the benefit of a few wealthy capitalist,
you will lose. modern history is littered with loser ideologues'.

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