DHS Report Card: The Good, the Bad, and the Ugly

August/September 2007 Volume 41, No. 4 GLOBAL TRADE in the balance

Ca r l o s Gu t i e r r e z Ca r l a Hi l l s Ti m Pa w l e n t y Gr a n t Al d o n a s Da n i e l Dr e z n e r Da n Ik e n s o n

Plus: Ross Perot’s press secretary discusses the ’92 campaign and the challenges of mounting a third party bid for President

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Volume 41, No. 4, August/September 2007

Articles Cover Story (cont’d.)

4 The Coming Transition from 16 What Trade Means to My State Analog to Digital By Tim Pawlenty By Fred Upton The Governor of Minnesota talks about the importance of trade to residents of his 6 Keeping America’s Food Supply state and what he is doing to strengthen Safe and Secure things in that regard. By Mary Sophos 18 What Trade Means to the American 8 DHS Report Card: People The Good, the Bad, and the Ugly By Daniel W. Drezner By Randall Larsen From the coffee we drink in the morning to the iPods we listen to throughout the Cover Story day, Americans have become accustomed to the benefits of global trade. Global Trade in the Balance 21 Dark Days Ahead? 10 The President’s Vision for Global Trade By Dan Ikenson By Carlos M. Gutierrez A storm is brewing on Capitol Hill The United States Secretary of over the future of U.S. trade policy and Commerce discusses what the Bush the course our nation should take. Administration is doing to improve America’s position with regard to Politics & Perspective trade around the world. 23 Reflections from the 12 U.S. Trade Policy: Perot Campaign of 1992 Does it help or hinder U.S. business? By Jim Squires By Carla A. Hills The former U.S. Trade Representative 26 Soft News, Hard Sell: Treat the looks back on 60 years of trade policy and Audience as Consumers, not Citizens shares her thoughts on the challenges that By Shanto Iyengar lie ahead. Sections 14 Doha Do or Die By Grant Aldonas 3 A Note from The current round of multilateral trade the Chairman Emeritus negotiations have dragged on for nearly six years. Is time running out on the 28 Ripon Profile prospects of reaching an agreement? Senator Charles Grassley

Publisher Editor The Ripon Society Louis M. Zickar One Year Subscription: Comments, opinion editorials and letters should be addressed to: The Ripon Forum, President Editorial Assistants $35.00 individuals 1300 L Street, NW, Suite 900, Washington, Richard S. Kessler Mary Brazelton $10.00 students DC 20005 or may be transmitted Sara Clark electronically to: [email protected]. The Ripon Forum (ISSN 0035-5526) is Chief Administrative Officer published bi-monthly by The Ripon Society. George McNeill The Ripon Society is located at 1300 L Street, In publishing this magazine, the Ripon Society NW, Suite 900, Washington, DC 20005. Editorial Board seeks to provide a forum for fresh ideas, © Copyright 2007 William Frenzel Postmaster, send address changes to: well-researched proposals, and for a spirit By The Ripon Society of criticism, innovation, and independent William Meub The Ripon Forum, 1300 L Street, NW, Suite All Rights Reserved 900, Washington, DC 20005. thinking within the Republican Party. Billy Pitts

RIPON FORUM August/September 2007

THE RIPON SOCIETY HONORARY CONGRESSIONAL ADVISORY BOARD Senator Chuck Hagel (NE) Senate Chairman Senator Richard Burr (NC) Senator Norm Coleman (MN) Senator Susan M. Collins (ME) Senator Judd Gregg (NH) A Note from Senator Orrin G. Hatch (UT) Senator Pat Roberts (KS) the Chairman Emeritus Senator Gordon Smith (OR) Senator Olympia J. Snowe (ME) One of the goals of the Ripon Forum has always been to shine a Senator Arlen Specter (PA) spotlight on little known issues that were not receiving much attention. Senator Ted Stevens (AK) In this edition of our journal, we have decided to do something Representative Judy Biggert (IL) slightly different – mainly, shine a spotlight on a well known issue that, Representative Roy Blunt (MO) we believe, is being virtually ignored. Representative Ken Calvert (CA) The issue is global trade. Over the past eight months, it has Representative Dave Camp (MI) become increasingly obvious that trade has become less and less Representative Eric I. Cantor (VA) of a priority on Capitol Hill. Trade agreements reached with other Representative Michael Castle (DE) countries have not been voted on, and the President’s Trade Promotion Representative Howard Coble (NC) Authority has not been renewed. Representative Ander Crenshaw (FL) As a result, America has been left handcuffed on the world stage. Representative Thomas M. Davis III (VA) Of course, the real victims here are the American consumers, who lose Representative Vernon Ehlers (MI) the opportunity to have better choices and better prices for the things Representative Jo Ann H. Emerson (MO) they buy. Representative Philip S. English (PA) In this edition of the Forum, we take a look at what some of these Representative Mike Ferguson (NJ) benefits are, and the politics that are standing in their way. We have an Representative Vito Fossella (NY) exceptional group of leaders and experts to help us do this, including Representative Rodney Frelinghuysen (NJ) Secretary of Commerce Carlos Gutierrez, former U.S. Trade Rep Carla Representative Paul E. Gillmor (OH) Hills, and Governor Tim Pawlenty of Minnesota. Representative Kay Granger (TX) In addition to trade policy, we also examine some other pressing Representative Robin Hayes (NC) topics in this edition. Congressman Fred Upton writes about the Representative David Hobson (OH) coming transition from analog to digital broadcasting and what it Representative Ray H. LaHood (IL) means to first responders. Homeland security expert Randall Larsen Representative Steven LaTourette (OH) assesses the performance of the Department of Homeland Security six Representative Jerry Lewis (CA) years after 9/11. And Jim Squires, who served as Ross Perot’s press Representative Jim McCrery (LA) secretary when he ran for President, reflects on the ’92 campaign and Representative Thomas E. Petri (WI) offers some advice for third party candidates running today. Representative Deborah Pryce (OH) As with all editions of the Forum, we hope you enjoy what Representative Adam Putnam (FL) we have put together, and encourage you to contact us at editor@ Representative Jim Ramstad (MN) riponsociety.org with your thoughts and comments on anything you Representative Ralph Regula (OH) read. Representative Christopher Shays (CT) Representative Fred Upton (MI) Bill Frenzel Representative James T. Walsh (NY) Chairman Emeritus Representative Edward Whitfield (KY) Ripon Society

The Ripon Society is a research and policy organization located in Washington, D.C. There are National Associate members throughout the United States.

RIPON FORUM August/September 2007 3 Articles The Coming Transition from Analog to Digital Public Safety stands to benefit the most

Fred Upton

In February of 2006, President government will issue each household consumers benefit, our nation’s George Bush signed into law up to two $40 converter box coupons taxpayers will benefit as the sale of legislation that designates midnight, upon request, also starting in early the spectrum currently occupied by February 17, 2009, as the date to 2008. (More information about the the nation’s broadcasters is expected complete the transition from analog DTV transition and the converter box to generate billions of dollars to to digital television broadcasting. pay down the debt. But most Digital television (DTV) is an importantly, with the transition innovative new type of over-the- to digital, our nation’s first air broadcasting technology that responders will finally have enables TV stations to provide access to the additional spectrum dramatically clearer pictures they need to communicate in and better sound quality. The times of emergency. transition from analog to digital On that cold day in February television represents the most 2006 when President Bush signed significant advancement of the legislation into law that set television technology since color the date for the transition to TV was introduced decades ago. digital television, we also paved Who will be affected once the way for broadcasters to clear the proverbial switch is flipped? a spectrum for interoperable Cable, satellite, and telephone public safety communications. companies will take steps to I was especially pleased that continue providing service for the new law included my their television subscribers. And amendment creating a $1 billion anyone already using a digital federal grant program, paid for television with an over-the-air by spectrum auction sales to the antenna will see no change in private sector, which will soon service. provide public safety officials But the small number of with much-needed resources to folks who currently receive improve interoperability using free broadcast television We have witnessed the additional spectrum the law programming using an analog gives them. television set and an over-the- many painful events During any disastrous event, air antenna will need a DTV over the last decade that it is our nation’s first responders converter box to continue to who answer the call of duty and receive service. These boxes highlighted the critical rush into harm’s way, putting will be available in early 2008, need for interoperable their lives on the line. In are expected to cost about $50, communications. order for first responders to do and will improve the picture of their job, they must be able to even old television sets. communicate with one another - Congress also set aside funds for coupon program is available at www. - not just fire, police, and EMS within consumers who want help covering dtv.gov and www.ntia.doc.gov.) one jurisdiction, but also among the cost of the converter boxes, and the Not only will the nation’s local, state, and federal jurisdictions.

4 RIPON FORUM August/September 2007 We have been working over heard and many lives were lost. failed. But we have made great the last decade to provide our first Hurricane Katrina also made us progress, and soon public safety will responders with the vital capability to acutely aware that we still had much have access to the 24 megahertz of communicate interoperably and our work to do on behalf of our first spectrum they were promised and so efforts are finally coming to fruition. responders. Coast Guard helicopters desperately deserve. We have witnessed many plucking survivors from police boats The 9/11 Commission understood painful events over the last decade in flooded New Orleans could not the importance of ensuring that our that highlighted the critical need for communicate with the emergency first responders have the equipment interoperable communications. and spectrum necessary to On the fateful morning of ...with the transition to digital, communicate in times of September 11, 2001, New York emergency. I’m proud that we police officers were able to our nation’s first responders were successful in not only hear the radio warnings from a will finally have access to the passing the DTV transition last helicopter that the North Tower Congress, but that we provided of the World Trade Center additional spectrum they need a helping hand to enable our first was glowing red, and most of to communicate in times of responders to better protect all of the police officers exited the emergency. America. RF building safely – while dozens of firefighters, who could not hear these warnings, tragically perished officials in the rescue boats that were Fred Upton represents the Sixth when the tower collapsed. The radio literally just feet below. District of Michigan in the U.S. communications system used by the We have endured some horrible House of Representatives. He is the police was not compatible with the lessons during 9/11 and Hurricane Ranking Republican on the Energy system used by the fire department; Katrina as crisis communications and Commerce Subcommittee on consequently, no warnings could be during both of these tragic events Telecommunications and the Internet.

RIPON FORUM August/September 2007 5 Keeping America’s Food Supply Safe and Secure

Mary Sophos

Although the United States has agencies at the federal, state and local failed to keep pace with inflation, let the safest food supply in the world, the levels work hard every day to ensure we alone the rapidly changing pace of food American public is beginning to wonder have a safe and secure food supply. Two science. whether or not they can trust the brands federal agencies – the U.S. Department Based on current projections, by they buy and the food they eat. From of Agriculture (USDA) and the U.S. the end of fiscal year 2007, the Agency’s spinach to pet food, recent events have Food and Drug Administration (FDA) funding will have fallen 30 percent shaken public confidence in the safety are primarily responsible for food behind inflation over the past five years, and security of our nation’s food and food-related staff will have supply. That should come as no suffered a 15 percent cut. That surprise, because the safety and means a shortage of 1,000 experts security of our food supply affects to conduct scientific evaluations the health and well-being of each of new foods or ingredients and every American, as well as and to inspect imported fruits millions of people around the and vegetables. In comparison, globe. funding for other national health By its very nature, our food agencies, such as the Centers for supply constantly evolves in Disease Control, has grown much reaction to changes in consumer faster than inflation. preferences, new processing Traditionally, the FDA has and packaging technology, and been able to adapt to meet new breaking news in the area of food and emerging threats. But now, science. For instance, who would the agency is confronting an ever- have predicted 20 years ago that expanding scope of threats with fresh and organic foods would increasingly shrinking resources. be one of the fastest growing From contaminant outbreaks, a segments in retail food today? growing number of imports and Despite the challenges that come food labeling challenges to product along with these changes, the food approvals and health and wellness, industry has quickly adapted to emerging issues have placed give consumers what they want increasing demands on the FDA, – safe and affordable foods that making it hard for the Agency to meet their lifestyles. keep pace. The safety and security of To truly protect the American our food supply is the shared public, the FDA must have the responsibility of policymakers, safety. resources it needs, not only to quickly regulators and the food industry. For Since its inception, the FDA has respond to food emergencies, but to industry’s part, food safety is paramount. been the principal protector of most of prevent the crisis from happening in Nothing we do would be possible if our food supply. However, the Agency the first place. That is why a broad consumers are not able to trust that the is at a critical crossroads. Inadequate coalition of stakeholders, including the brands they love and the foods they eat funding has undermined the Agency’s food industry, has formed the Coalition are safe. resources and its ability to protect the for a Stronger FDA, with the goal of In addition, government regulatory food we eat. In fact, FDA’s funding has doubling the Agency’s food safety

6 RIPON FORUM August/September 2007 budget over the next five years. response to recent events – food outbreaks and contaminations has In addition, industry is working manufacturers constantly verify, declined steadily over the last decade. with Congressional leaders and update and modernize their food safety That is a trend that everyone, including regulatory agencies to identify any procedures. Whenever necessary, they food manufacturers, policymakers and weaknesses in our nation’s food safety ramp-up inspections, conduct audits, consumers, wants to see continue for net, and put in place new strategies another decade. to confront them. In fact, industry As we seek our goal of a zero- is working with a recently To truly protect the risk food supply, both government appointed White House working American public, the FDA and industry must remain vigilant, group tasked with researching and constantly “think outside the our food safety infrastructure and must have the resources box” when it comes to food safety. making recommendations for it needs, not only to And, when problems are identified improving the safety of our food quickly respond to food – both large and small – they supply – especially the safety of must react swiftly to identify the foods from overseas. emergencies, but to prevent problem, address any weaknesses But food safety is not just the crisis from happening in and reassure the public in the safety about government oversight and and security of our food supply. enforcement. Our food companies the first place. That is the game plan for are some of America’s most success. RF respected businesses for a good reason switch to alternate suppliers, conduct – they work hard to earn the trust of their recalls and do whatever is necessary Mary Sophos is the Senior Vice consumers. That trust is not possible to ensure the quality and safety of their President and Chief Government without an understanding that they products. Affairs Officer of the Grocery provide consumers with safe products. Despite recent events, the number Manufacturers/Food Products On an ongoing basis – and in of food-related deaths, illnesses, Association.

RIPON FORUM August/September 2007 7 DHS Report Card: The Good, the Bad and the Ugly

Randall Larsen

Earlier this year the House flawed and secretive process that Additionally, Congress is equally Committee on Homeland Security created this department of 26 culpable for their constant meddling issued a report card on the department different organizations guaranteed a (such as another initiative to move it oversees. decade-long maturation process. The FEMA) and failure to properly As the co-host of my radio show Administration did not consult with a reorganize itself as recommended by said when introducing Congressman single member of the bipartisan Hart- the bipartisan 9/11 Commission. At Bennie Thompson (D-MS), the Rudman Commission regarding the last count there were 83 committees Chairman of the House Homeland establishment of this new department, and subcommittees providing Security Committee and the “oversight,” and DHS officials report card’s author, “This is not had given four times as many a report card I would want to testimonies as the Defense take home to mama.” Department, despite the fact that Indeed, there were many DHS is less than 1/12 the size. So valid criticisms within this oversight in this case primarily report. On the other hand, we refers to the oversight of special haven’t been attacked on our interests and is a huge distraction. homeland since 2001, and the Administration says we must The Good. be doing something (or a lot The two best aspects of the of things) right. So where Department are Secretary Michael is the truth? Are America’s Chertoff and Kip Hawley, the taxpayers getting a solid return head of the Transportation on investment for the $35 Safety Administration. With few billion we spend each year on exceptions, they have established the Department of Homeland the proper priorities. Security (DHS), the third largest Chertoff understands the folly federal agency? of overreactions to small-scale On an absolute scale, I’d threats, the absolute requirement give the Department a D+. On a to focus on the catastrophic curve, factoring in those elements threats (the ones that could forever for which the Department change the nation), and the need leadership has no control (and to allocate funds accordingly. I am not talking about al Qaeda), I On an absolute Hawley was lambasted by both the give them a C. This is the DHS grade scale, I’d give the media and Congress when he first for today — not an assessment of its took office and announced that we first 53 months. Department would have TSA personnel focus less My former students will point a D+. on pen knives and knitting needles, out that I never graded on a curve, so and more on carry-on bombs. That why should I consider it now when even though the distinguished was one year before al Qaeda we are talking about the security of commissioners had studied the attempted to put liquid bombs on ten our families and nation? concept for three years and created airliners headed to the U.S. We need To be fair, though, the horribly the original DHS blueprint. visionary leaders who keep us two

8 RIPON FORUM August/September 2007 steps ahead of the bad guys instead of is human resources. Not only does it to locate, lockdown and eliminate one step behind. have the lowest rated morale within nuclear materials that terrorists could Secretary Chertoff understands the federal bureaucracy, it is also use to build a Hiroshima style bomb. that “feel good initiatives,” such as incredibly bloated with political (By contrast, we are spending roughly 100 percent screening of all shipping appointees — far more per capita that same amount every four days in containers, are a waste of resources than any other – and yet it can’t fill Iraq). Moreover, the bipartisan Robb- with little likelihood of preventing many senior civil servant positions. Silberman Commission stated that a nuke from entering the U.S. (The This will be particularly disruptive intelligence collection on loose nukes best way to get a nuke into the U.S. during the last few months of this is not a high priority for the U.S. would be to charter a Gulfstream Administration and the first six government. Can anyone please tell V or Boeing Business Jet and file a of the next — a true window of me what could be a higher priority? flight plan directly to the target city.) vulnerability. All federal agencies Furthermore, no one is in charge of As for other weapons, the al Qaeda face transition challenges between protecting America from the most online manuals suggest terrorists administrations, but none like the ones serious threat we will face in the 21st make them inside the countries where DHS will face. There are also too century – bioterrorism. A recent DHS they will use them, just as they did in many contractors and too few career report clearly identified this growing Indonesia, Turkey, Morocco, Spain government employees, and decision- threat, but is anyone listening? I would and the United Kingdom. making processes are still weak. The sleep better at night if someone were in The Secretary also places a very department must place a top priority charge of biodefense. A study by the high priority on creating a trustworthy on recruiting career civil servants at Center for Biosecurity-UPMC stated identification system — called Real all levels to augment the talented but there are 26 Presidentially-appointed, ID. He cannot understand why some overworked force currently in place. Senate-confirmed individuals with people worry that an effective ID biodefense responsibilities, but no system is more of a threat to privacy one is in charge, and nearly six years than the one we have today that allows after the anthrax incident of 2001, any reasonably intelligent teenager to The real grade that America still has no anthrax response steal your identity. Americans should plan. Finally, Chertoff put together Finally, information sharing and an incredible legislative package for worry about, however, joint exercising – between federal, immigration reform — an initiative is not for DHS, but for state and local agencies, and between endorsed by a bipartisan coalition homeland security public and private organizations — including Senators Kennedy, has seen too little improvement since Kyl, Graham and Lieberman. writ large. 9/11, meaning we may see more of Unfortunately, it was defeated by the the chaos we saw after Katrina. vocal minority. How do we fix these problems? The Ugly. Unfortunately, a severely weakened The Bad. The real grade that Americans Administration, a Congress hopelessly From a strategic perspective, one should worry about, however, is not adrift in partisan squabbling and of the most significant deficiencies for DHS, but for homeland security positioning for the 2008 election, and that has plagued the department since writ large. The Department is just the budgetary demands of the war in day one is the tendency to ask the one of many players at the federal Iraq portend little or no improvement wrong questions, none more notable level, and the majority of homeland for the next 18 months — not a report than, “How do we protect our critical security takes place at the local level. card I would want to take home to infrastructure?” This leads to answers 9-1-1 will always be a local call. mama. RF focused on gates, guns, guards and The feds have major responsibility gadgets. The proper question is, “How for catastrophic events, such as do we ensure critical services?” The preventing and responding to nukes Colonel Randall Larsen, USAF (Ret) issue is not protecting water treatment and preparation for response and is the Director of the Institute for plants. Rather, it is about ensuring recovery from a biological attack, Homeland Security, co-host of public safe drinking water. Resilience is but the vast majority of homeland radio’s Homeland Security: Inside more important than security. We security is in the hands of state and and Out, and the author of Our can’t protect everything, but we must local government. Own Worst Enemy: Asking the Right improve the ability to mitigate effects Unfortunately, the ugly fact Questions About Security to Protect and quickly reconstitute. about the nuclear threat is that we You, Your Family, and America Another troubling issue in DHS only spend about $1 billion a year (Grand Central Publishing).

RIPON FORUM August/September 2007 9 Cover Story The President’s Vision for Global Trade Free Trade Agreements are key to future growth

Carlos M. Gutierrez

“The freer the flow of world trade, two-thirds of the hemisphere’s gross more than 42 percent of our exports the stronger the tides of human progress domestic product, and more than four- go to these same FTA countries. And and peace among nations.” fifths of our trade within the hemisphere last year we had record exports of $1.4 President Ronald Reagan’s words is with FTA partners. But there is trillion. Clearly, FTAs are directly linked in 1986 embody America’s philosophy always more to be done. Today, we can to the expansion of our exports. of open markets and free trade. The extend economic freedom, boost U.S. Our commitment to this hemisphere United States has greatly benefited exports, cut taxes and strengthen key goes beyond commercial relations and from President Reagan’s internationalist allies through agreements with Peru, encompasses social justice and the outlook. Our ideal of an economy driven Colombia, Panama and South Korea promotion of democracy and the rule by open markets and low of law. FTAs help create taxes has made America the broad-based growth the most competitive large that sustains the impact of economy in the world. these efforts. Ronald Reagan’s Consider Colombia, passion for economic one of the countries with freedom extended an FTA pending before throughout our Congress. Colombia has neighborhood. He paid a high price for its proposed a Free Trade fight against terrorists Agreement (FTA) with and radicals, with tens Mexico as early as 1980, of thousands dead and and in his 1988 State of the millions more who have Union Address said, “Our lived in fear for decades. goal must be a day when Today, Colombia’s the free flow of trade, from democratically elected the tip of Tierra del Fuego to the Today, we can extend economic president is our staunchest ally Arctic Circle, unites the people in the region, and has stood of the Western Hemisphere in freedom, boost U.S. exports, cut with us in the global war on a bond of mutually beneficial taxes and strengthen key allies terror. Standing up to guerilla exchange.” through agreements with Peru, movements and narcotics The Bush Administration traffickers has helped create has embraced Reagan’s vision, Colombia, Panama and South stability and peace in a land that recognizing the economic and Korea that are pending before has had far too little of both. social benefits of trade, and An FTA would encourage the has implemented FTAs with Congress. reforms that are now underway. 11 countries since 2001. Six of We must remember our those agreements are in Latin America, that are pending before Congress. democratic ideal of individual liberty acknowledging the great importance FTAs contribute to developing and freedom is not the only system being of extending economic openness and sustainable, balanced trading promoted. Though the battle against the prosperity to our own hemisphere. relationships. Consider this: while 7.5 repression of communism resulted in the Not including the U.S. economy, percent of world GDP is generated from fall of the Berlin Wall nearly 20 years we already have FTAs that cover countries with which we have FTAs, ago, others today still seek to rebuild

10 RIPON FORUM August/September 2007 walls of economic and social repression. our alliance with a country willing to supports higher paying jobs for American While we seek the empowerment of the compete on a level playing field. workers, and boosts productivity, which individual, there are others who seek to And, it is important to note that when drives national prosperity. suppress people, ideas and debate. While the United States canvassed the globe While we continue to promote open we encourage the free flow of investment for support against Saddam Hussein, markets, we must not tie the hands of our and business, others seek to stifle free Colombia and South Korea were two President, who needs Trade Promotion enterprise. of the many countries who stepped up Authority to participate in multilateral There are similar challenges to the plate, joining the “Coalition of trade negotiations. Other nations won’t halfway around the globe. South Korea’s the Willing,” to liberate Iraq. We must stop finding ways to enhance their neighbor to the north continues to seek competitiveness, and neither should we. the economic and political destabilization FTAs help create the Increased global engagement of the region. supports the Administration’s objectives Korea and the United States have broad-based growth that of ensuring our security, enhancing our been steadfast allies in the fight against sustains the impact of competitiveness and strengthening our communism for nearly 60 years, and economy. This is not a time to retreat Korea has also joined with us in the these efforts. or pull back from Ronald Reagan’s liberation of Iraq. We have also been vision. We cannot return to an age of CVX7G45442a3_m.qxd strong 7/20/07 economic 7:31 partners.PM Page Korea 1 is our remember our friends and allies. protectionism and isolationism, which seventh largest trading partner, with Simply put, FTAs help level the hampered the free flow of global trade. two-way trade already totaling $78 playing field by knocking down tariffs We are at our best when we are leading, billion. Through the FTA, Korea would and barriers that impede trade and open and engaged. Under our watch, we remove virtually all of its developing competition. Eliminating the taxes must not turn back the clock. RF economy protections. The agreement our exporters face helps them sell also presents an opportunity to diversify American goods and services to millions Carlos M. Gutierrez is the United 7.375" our engagement in Asia, by modernizing of consumers in new global markets, States Secretary of Commerce.

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CLIENT: Chevron STUDIO#: 7G45442 JOB#: CVX-ARC-M69688A BILLING#: CVX-ARC-Y69354 FILE NAME: CVX7G45442a2_r.qxd Page #: 1 OPERATOR: Joe K SAVED: 7/19/07 - 3:21 PM PREV OP: CREATED: 7/19/07 - 11:50 AM HANDLING#: 2.2 PRINT SCALE: 100% DOC PATH: Retouching:Clients:Chevron:7G45442_CVX_ARC_M69688:Latest Files:CVX7G45442a2_r.qxd FONTS: Helvetica, Interstate-Bold, Interstate.P-Regular COLORS: Cyan, Magenta, Yellow, Black U.S. Trade Policy: Does it help or hinder U.S. business?

Carla A. Hills

Over the past 60 years, under development. announcing they will not support Republicans and Democrats alike, Here at home, prospects for the already negotiated free trade the United States has worked to open trade policy are, if anything, even agreements with Colombia and South global markets and expand trade bleaker. Despite the much heralded Korea which would offer substantial opportunities. Our trade policy has announcement in May of a new benefits to our economy. They will hugely benefited our businesses, not consider voting on our trade farmers, consumers, and our agreements signed with Peru national economy. and Panama, which slash trade The Peterson Institute barriers faced by our producers, for International Economics unless those countries enact calculates that the United States changes in their labor and is richer by $1 trillion per year as environmental laws dictated by a result of opening markets since our Congress. World War II. That translates into To compound the difficulties, $9,000 of added wealth per year the Congressional leadership has for the average U.S. household. announced that it sees no need Poor countries that opened their to renew the President’s Trade markets to trade and investment Promotion Authority (TPA), on average have grown five under which the President times faster than those that kept negotiates trade agreements. their markets closed, resulting in Without TPA, it is virtually expanded market opportunities impossible for the United for our producers, farmers, and States to negotiate effectively service providers. Workers in with our trading partners, for export-related industries have we can give no assurance that gained too, for those jobs pay what the Trade Representative higher wages, provide greater negotiates will be the final deal benefits, and offer more security voted on by Congress. In short, than jobs in the overall economy. we are dealing ourselves out of Consumers have also gained Our trade policy negotiations that open markets. from access to higher quality If the rest of the world were and lower costing products. has hugely benefited to declare a standstill on trade, But what about the future? our businesses, farmers, we might say circumstances will The World Trade Organization’s not worsen for our exporters. Doha Round of multilateral trade consumers, and our But, alas, other countries are negotiations is in deep trouble. national economy. racing ahead to negotiate new The 150 governments involved trade agreements. As they obtain cannot agree on how to reduce farm bipartisan consensus on trade among access to key global markets, we will subsidies, lower tariffs, remove Democrats and Republicans in be left behind, and our exporters and trade barriers on highly protected Congress and the Administration, their workers will almost certainly industrial and agricultural products, House Democrats have largely be disadvantaged by our lack of an open services markets, or promote walked away from that agreement, effective trade policy.

12 RIPON FORUM August/September 2007 How might we resurrect trade the same effort to educating his or her and in a new field, even where as an policy? employees regarding the benefits of entry-level worker the new job paid First, we need to educate our trade as he or she does to enhancing less than the job closed down. Such citizens about the benefits of trade. company productivity, political a program would encourage workers We can agree with anti-globalists support for open trade and the Doha to stay in the workforce and obtain that trade liberalization is not a Round would soar. the most effective training possible, panacea for the world’s ills. Yet it Second, we need to help those which is training on the job. We also is indisputable that trade stimulates adversely affected by change. Not need to ensure workers have access economic growth and helps create every citizen benefits from trade. We to health insurance and pension the resources required to deal with need to do a much better job assisting portability. This will cost some pressing social problems. And those displaced by changes in the money. But our economy derives adherence to the rules of a broad workplace, whether those changes are huge gains from trade, and it is in our trade agreement encourages rule of caused by trade, technology, or shifts national interest to allocate some of law, transparency, and respect for in consumer demand. Studies show those gains to help those who bear the property, which are critical elements that while U.S. gains from trade are $1 burden of change. To do otherwise to stability. The facts about trade trillion per year, the lifetime costs of risks losing public support for trade. need to get out. worker displacement are roughly $50 Third, we need to help Americans For example, few Americans billion per year. To gain adherents compete effectively in the global know that lowering trade barriers for our efforts to open markets, we market. We need to do a better job of even by one-third in the Doha Round need to do a better job to help those training and educating our workforce would boost the average American’s left out – not by closing down trade to compete in the rapidly-changing annual income by $2,000 (in global market. That requires 2003 dollars). They have If every CEO in the investing more of the wealth no idea that poor countries that our nation derives from are made less competitive United States would give open markets in our human because they are required the same effort to educating capital. For example, we to pay higher tariffs on their cannot continue to be the exports than wealthy countries his or her employees regarding world’s most innovative and would be astonished to the benefits of trade as he or nation with the richest learn that the U.S. collects she does to enhancing company economy while one third roughly the same amount of of our high school students tariffs from Bangladesh on $2 productivity, political support fail to graduate. Similarly, billion in imports that it does for open trade and the in this age of globalization, from France on $30 billion. we cannot afford to have our They do not know of the Doha Round would citizens be deficient in foreign huge subsidies that wealthy soar. languages or have our capital governments, including our infrastructure – from our own, pay their farmers that force – but rather by allocating some of electricity grids to our highways and more efficient producers in poor the very substantial yearly gains bridges – be in a state of disrepair. All countries out of the market, or that we derive from trade to help those of this impedes our competitiveness. 80 percent of subsidies the United displaced because of change driven Lack of attention to and failure to States pays its farmers go to large by globalization and technology. invest in our nation’s future needs, not agribusinesses, not to small family Current programs such as trade, are real sources of concern. farmers. Significantly, Americans do unemployment insurance and To reap the benefits of trade that not know that these are issues at stake trade adjustment assistance are not benefit U.S. businesses, workers, in the Doha Round. tailored for the 21st century economy and farmers, we must promote sound By explaining these facts, our epitomized by rapid change. It is time policy here at home. RF business and political leaders could we looked at a program that combines help our citizens understand that trade unemployment insurance with a form Carla A. Hills served as U.S. is the best tool our government has to of wage insurance for workers who Trade Representative from 1989 to generate economic growth at home take a new job at a lower salary. 1993. She is currently Chairman and abroad, alleviate poverty, correct Assistance that brought their pay for and Chief Executive Officer of inequities in our trade regime, and a transitional period closer to what Hills & Company, an international encourage global stability. If every they previously earned would provide consulting firm based in Washington, CEO in the United States would give incentive to find a new job quickly DC.

RIPON FORUM August/September 2007 13 Doha Do or Die

Grant Aldonas

It is do or die for the Doha round two obstacles – developed countries’ industrial goods, preferring to lower of World Trade Organization (WTO) agricultural subsidies and developing only their “bound” rates (i.e., the levels trade talks. It may well be do or die countries’ tariffs. On the agricultural at which they previously agreed to limit for the global economy, too. It depends front, politicians in the United States their tariffs). Their stance is all the more on the ability of politicians in both and Europe defend their agricultural remarkable because their unilateral cuts the developed and developing world policies and face a serious backlash in tariffs, in India in particular, have to understand how fundamentally the from farmers, even as the United States spurred significant economic growth world economy has changed and how prepares to legislate a new farm bill and productivity gains, leaving their they must use the Doha negotiations as and the European Union (EU) looks current tariff levels far below the bound a vehicle for articulating trade rules that toward another round of reform of the rates. match those changes. Common Agricultural Policy (CAP). The irony is that both obstacles If the trading system reflect the trade politics, survives, it will do so domestic and international, either because of vigorous that prevailed 30 years farsighted leadership or ago, not the economic in spite of it. Based on challenges we face in the track record thus far, today’s global economy the latter looks like the behind the changes in the far more likely, if less world economy. Indeed, welcome and considerably any trade negotiator active more risky, outcome. The in the Tokyo Round of record of recurring failure talks under the General to date puts even that result Agreement on Tariffs and in doubt. Trade (GATT), which The current round ended in 1979, would of multilateral trade recognize the trade negotiations, launched by measures – subsidies and the members of the WTO Filipino anti-WTO protestors at a February 2007 rally outside the tariffs – that separate the in Qatar in 2001, have hotel in Manila where WTO officials were meeting with Philippine two sides. dragged on for nearly businessmen on the prospects for the Doha round. Rich country six years without even agricultural subsidies have defining the modalities dogged the trading system that would govern the talks and define Japan hopes to exclude rice from the since its creation. In 1947, at the outset the shape of the deal. The negotiators negotiations. Canada, as one Canadian of negotiations that would eventually have yet to begin the actual bargaining negotiator remarked to me, is saved become the GATT, the United States over specific trade barriers that will from its own hypocrisy on farm trade tabled a draft agreement that imposed be required to complete the round. only by the intransigence of the U.S. significant disciplines on industrial In significant areas, such as trade in and EU. goods (where the U.S. has a strong services, the negotiators cannot even In the developing world, the comparative advantage, particularly in see the outlines of a bargain they could putative leaders of the group, India the post-World War II era). The draft strike. and Brazil, have indicated that they do was considerably weaker on agriculture, The Doha Development Agenda, as not intend to cut the actual tariff rates where the developing countries of the round is known, has foundered over they apply on either farm products or the day had a stronger comparative

14 RIPON FORUM August/September 2007 advantage. growth. Significantly, China and India is that none of that makes sense in a Even those weak disciplines contribute only a quarter of the growth global age. In a global economy, the eventually proved too much for the coming out of the developing world, competition is not for markets, but for United States, which demanded testifying to the broad nature of positive capital, talent and ideas. In that context, a waiver for all of its agricultural economic changes under way in many what matters most is a country’s programs in 1955. That waiver, which poorer countries. openness to globally-engaged firms that essentially eviscerated any meaningful International trade has changed as bring investment, technology, know- rules on farm trade, would come back well. Whereas trade prior to the Tokyo how, and experience in world trade. to haunt U.S. farmers when it was used Round in the 1970s largely involved They may be domestic or foreign, but as precedent by the EU’s predecessor, arm’s length transactions between what matters most is their attraction the European Economic Community, independent exporters and importers, towards those nations that are open to to provide cover for its larger and more trade today is largely within the supply the world. trade-distorting CAP program. chains of globally-engaged firms with Given the reality of both current A similar sorry saga traces operations in many different regions of politics and the global economy, it is not developing country trade policies. the world. For those actually engaged in hard to see why public support for free Rather than bargaining for stronger international trade, the goal today is not trade and open engagement in the world disciplines on agriculture at the outset to export to Japan or to the United States economy has fallen precipitously. Nor is of the GATT, they asked to be relieved as much as it is to export to Toyota or it hard to understand why politics in the of the stricter disciplines on trade in Wal-Mart and let them take you global. United States, Europe, Brazil and India, industrial goods. In the process, the changes in the along with a host of other countries, Their logic followed the intellectual world economy long ago outpaced has taken on a far more populist and trends of the time, both with respect to the concepts underlying the current protectionist tinge of late. the benefits of socialism and It is hard for voters to put with respect to trade theories ...trade is ultimately their trust in political leadership that suggested high import that seems to lack even a basic barriers would encourage about domestic politics, acquaintance with the world economic development because not international bargaining. economically, much less a sense they would force adjustment of how the broad global trends from subsistence agriculture It is about creating the political affect the individual consumer toward higher valued-added space domestically so that or worker’s pocketbook. That manufacturing. The fact that a deal can be struck simple fact transcends all the neither state domination of the intricacies of the negotiations, commanding heights of the globally. because trade is ultimately about economy nor import substitution domestic politics, not international actually worked does not appear to trading system and the Doha round of bargaining. It is about creating the have affected developing country trade negotiations. That is why the negotiators political space domestically so that a policies based on their bargaining have driven into a cul-de-sac. It is not deal can be struck globally. positions in the current round. simply intransigence on the part of Thus, while the subject matter is In the interim, however, both U.S. and EU negotiators on agriculture economic, the challenge is ultimately the global economy and the domestic or willful disregard of their economic political. The challenge for George economies of rich and poor alike have interests by the Indian and Brazilian Bush, Angela Merkel, Manmohan Singh changed fundamentally. Agriculture negotiators. or Lula is to articulate a clear vision of now makes up less than 2 percent of the To understand that conundrum, how a Doha deal fits within a global U.S. economy. The same holds true in it helps to know how bargains are economy of broadly-shared benefits. Europe and Japan. The U.S. economy reached in the WTO. Negotiators start That is the only way to galvanize the is nearly 85 percent services, such as from a very mercantilist perspective political support for a deal that is “do,” telecommunications, financial products, (a major curse in the world of trade). not “die.” RF logistics, and marketing. They bargain for market access for Developing countries are no longer their exports and try to limit the import Grant Aldonas served as the U.S. in the back of the pack economically by competition their industries face. A Under Secretary of Commerce for many measures. As a group, developing winning deal politically is one in which International Trade from 2001- countries now make up more than 50 they gain considerable market access and 2005. Currently, he is the Principal percent of the world’s gross domestic offer none. You can see the difficulty of Managing Director of Split Rock product and considerably more than reaching a deal on that basis. International, an international 50 percent of the world’s economic But the far more important point consulting and investment firm.

RIPON FORUM August/September 2007 15 What Trade Means to My State

Tim Pawlenty

Twenty-five years ago this among the first to invest there. leading initiative that brings together October, something remarkable For example, 3M was the first public and private organizations happened in Minnesota: two governors, foreign company to establish a wholly- throughout the state to promote all each from his nation’s heartland, put owned subsidiary in China. Cargill facets of Minnesota’s relationship with their names to a document formalizing also formed an investment company in China. their friendship. Shanghai and was first to win approval Over the years, each time One line bore the signature of to conduct business in China. And, Minnesota has extended itself, China Minnesota Governor Al Quie; the Northwest Airlines was the first U.S. has responded enthusiastically. other, the signature of Yu Mingtao, airline to provide non-stop air service Cooperative partnerships between governor of Shaanxi Province in the between the United States and China. Minnesota and China abound in many People’s Republic of China. By 1989, some 80 Minnesota areas. More than 25 government That ceremony in the fall of 1982 companies were doing business in delegations have visited Minnesota – a moment that would have been China. And today hundreds and in the past decade, including some inconceivable just a decade earlier hundreds of our small, midsized and of the most prominent and influential when President Richard Nixon paid his large companies do business there, leaders in China. And earlier this year, historic visit to the communist Minnesota and China formalized nation – went virtually unnoticed. an agreement to work together Even the state’s largest newspaper ...manufactured exports to stimulate two-way investment relegated the event to a brief alone are responsible for between Minnesota and China. buried in its B-section. Of course, our trade The significance of that nearly 111,000 jobs statewide. relationships extend well first official meeting between In fact, one in six manufacturing beyond China, but I think our Minnesota and China may have efforts there well illustrate the been lost on many, but visionary jobs in Minnesota is dependent importance Minnesota places political, business and education on exports. on international trade, as well as leaders knew exactly what it our commitment to cultivating meant. Three years had passed international opportunities. since the United States normalized exporting more than $1.2 billion a year The year that the first Chinese diplomatic relations with its former in manufactured goods. delegation visited Minnesota, the enemy and it wouldn’t be long before In 2005, I became the fourth state’s total manufactured exports to the door opened again to trade with the Minnesota governor to lead an official all foreign markets were less than $3 West. delegation to China. Our delegation billion. In 2006, Minnesota companies A year later, another governor, had more than 200 members, the exported more than $24 billion in Rudy Perpich, brought Minnesota’s largest such mission undertaken by manufactured goods, services and first official delegation to China and any state. Each governor’s visit was agricultural commodities to 205 the state opened an official trade office historic in its own right. And each foreign destinations. to help our companies do business in built upon the work of his predecessor, Those foreign sales are an markets all over the world. opening doors, building bridges, and important part of our state’s economy And as China slowly began strengthening ties. – accounting for about 10 percent of the economic reforms that laid the Beyond that mission, my our gross state product. They translate foundation for its economic success administration launched the into thousands and thousands of good today, Minnesota companies were Minnesota-China Partnership, a nation- jobs and everything that goes with

16 RIPON FORUM August/September 2007 them – house payments, groceries, insemination products and services home, including China’s Laiwu Steel health care, vacations, college tuition, for the Jersey livestock market. With Group, India’s Suzlon Energy, and and retirement savings. five full-time employees, the company Denmark’s Coloplast, just to name a Between making, selling, markets its products and services in few. Foreign companies employ more and transporting goods to market, at least 12 countries. International than 83,000 people in Minnesota, an manufactured exports alone are sales account for 41 percent of total increase of 8 percent over the past five responsible for nearly 111,000 revenue. The company’s international years. jobs statewide. In fact, one in six sales have risen tenfold in the past two The basic benefits of trade are manufacturing jobs in Minnesota is years. the same for Minnesotans as all dependent on exports. Even when Minnesota companies Americans: reduced prices for goods The breadth of companies involved buy foreign components it can create and services, boosted economic growth in international trade is amazing. A few and save jobs here at home. and well-being, enhanced productivity, examples: Not long ago, the future was and higher per capita income. But • Satellite Industries sells portable uncertain for a struggling Minnesota – much like Minnesota’s first meeting sanitation equipment in more than company that manufactures emergency with the Chinese governor – the 80 countries and employs 58 people lights for police cars and other vehicles. significance of trade goes unnoticed or in Minnesota. Export sales, up 20 Lackluster sales and increased unacknowledged by many people. percent from a year ago, represent 28 competition were starting to hurt. Like some of my predecessors, percent of the company’s total annual Things turned around after the I’ve led several trade missions to revenues. company found sources in China to established and emerging markets •Capital around the world. Safety USA In late October, I’ll manufactures take a delegation fall protection of Minnesota e q u i p m e n t , business leaders employing 280 on a trade mission people. The to New Delhi, c o m p a n y ’ s Bangalore, and i n t e r n a t i o n a l Mumbai to explore sales, up 91 opportunities in percent in the India. past three years, The missions account for 9 are important for percent of the promoting our c o m p a n y ’ s export industries to annual revenue. new customers and • D i g i t a l the state as a great River is a location for foreign global leader direct investment. in e-commerce Governor Pawlenty meets with Chinese Vice Minister of Foreign Affairs Yang Jiechi But they’re products and during a trade mission to China in November 2005. also important services. It has opportunities to six global data remind Minnesotans centers, displays in 18 languages, and build the components for an improved of the stake they have in the global transacts business in 27 currencies. product line. Today, parts are shipped economy. International sales accounted for in and the finished products assembled In a world where sales in Beijing 41 percent of sales in 2006, up in Minnesota. The company, which and Chongqing, China, have a direct from about 24 percent in 2003. The cut its costs in half, is now one of the bearing on life in Alexandria and St. company employs nearly 1,100 largest in its industry. Paul, Minnesota, it’s a lesson we can’t people in Minnesota and has major The pocketbook impact of afford to forget. RF offices in Germany, England, Ireland, international trade in Minnesota is Luxembourg, Taiwan, and Japan, and further magnified when you consider Tim Pawlenty is the Republican customers in nearly every country foreign direct investment in the state. Governor of Minnesota. He also across the globe. Today, several hundred affiliates serves as Chairman of the National • Excalibur Sires provides artificial of foreign companies call Minnesota Governors Association.

RIPON FORUM August/September 2007 17 What Trade Means to the American People

Daniel W. Drezner

On September 19, 1947, the Part of the problem is that when Imports allow the United States to small town of Janesville, Wisconsin politicians preach the virtues of freer specialize in making the goods in which conducted an intriguing experiment. trade, they naturally focus on the it is the most productive, relative to The 2,000 employees of the Parker Pen importance of exports, and America’s other possible uses of resources. This Company received 40 percent of their large trade deficit makes exports seem leads to increased economic growth salary in Mexican pesos, symbolizing less important. To be sure, export and increases in labor productivity the importance of overseas markets to industries generate higher-paying jobs over time. Increased competition Parker’s business strategy. and symbolize America’s technological between importers and American Over the next several days, the leadership and capacity for innovation. producers lowers prices and increases pesos circulated as legal the variety of choices for tender throughout the town’s American consumers. economy. The point of the Furthermore, imports have exercise was to demonstrate greatly expanded consumer the importance of foreign choice, and are responsible trade to the livelihood of for a four-fold increase in the Janesville’s residents. As variety of goods available the pesos wended their way to American consumers through the cashboxes of over the past three decades. local merchants, the PR stunt Combined, trade permits the had its effect. According to use of more expansionary two observers, “Janesville monetary policies than would realized as never before that otherwise be possible without its prosperity and livelihood triggering inflation. An open depended in no small part on market is a significant reason the existence of a going trade why the United States has with countries far distant from recently been able to sustain America’s isolated Middle robust economic growth, West.”1 dramatic increases in labor When Janesville productivity, low rates of conducted this little exercise, unemployment, modest the postwar boom in trade was just Part of this focus, however, comes rates of inflation, and historically low beginning. Trade flows represented from the mistaken belief that exports interest rates. A construction worker, less than 7 percent of the United States are good and imports are bad. This working in a sector without imports economy. Sixty years later, that figure kind of mercantilist thinking lost or exports, would not ordinarily think is closer to 30 percent. In this era its respectability around the time of globalization, it would be much of Adam Smith, but in recent years 1 C. Stuart Siebert Jr. and William Peters Jr., harder to imagine how the United some members of the United States “A Public Relations Technique for Explaining Foreign Trade,” Public Opinion Quarterly 13 States economy could run without Senate seem bound and determined to (Winter 1949/50), p. 605. the assistance of foreign trade. It is resuscitate the idea.2 2 Sherrod Brown, Myths of Free Trade (New particularly disturbing, then, to hear In point of fact, the primary York: W.W. Norton, 2004); Byron Dorgan, Take renewed calls for protectionism in the way Americans benefit from trade This Job and Ship It (New York: St. Martin’s Press, 2006); Charles Schumer, Positively halls of Congress in recent years. liberalization is through imports. American (New York: Rodale, 2007).

18 RIPON FORUM August/September 2007 that they got their job because of trade Of course, even if the United shoes made in China for $15 in a place expansion – but some of them have. States could somehow produce that like Payless shoe stores. For someone This is easy to say in the abstract, much coffee, it would not matter that on a moderate or low income, to be able but harder to put into concrete terms. much. Both industrial and household to buy your 4-year-old kid perfectly Policy analysts at the Peterson Institute coffeemakers are manufactured good shoes for $15 is a real economic for International Economics recently outside the United States. Forget the benefit.” attempted to measure the cumulative morning ritual of consuming coffee at The truly astounding fact is that payoff from trade liberalization home – successful trade protectionism consumers benefit from these shoes since the end of World War II.3 would also successfully bankrupt every despite persistently high tariffs for cheap They conservatively estimated that Starbucks franchise in America footwear (48 percent). According to one multilateral trade liberalization from • Shoes: If trade barriers were think tank’s calculations, existing tariffs 1945 to the present generates economic restored to Smoot-Hawley levels, disproportionately hurt the poorest benefits ranging from $800 billion to Americans would have pay a lot more for Americans.8 These trade barriers are $1.45 trillion dollars per year in added other products. In the recent book, “A concentrated in areas like clothing and output. This translates into an added Year Without ‘Made in China’,” author kitchenware, which gobble up a larger per capita benefit of between $2,800 Sara Bongiorni discusses her family’s share of income from poorer families. and $5,000 – an addition of somewhere efforts to go twelve months without As a percentage of their income, a between $7,100 and $12,900 per purchasing any product exported from single-parent household earning under American household. (This figure likely that country.6 In an interview with $25,000 a year has to pay nearly twice understates the benefits from trade, as much as a middle-class two-parent because the Peterson Institute did not The estimated family. The conclusion: “tariffs factor in the effects from increased appear at least on average to be the variety of goods available through gains from future only major tax in which effective imports. Economists estimate that trade expansion range rates rise as incomes fall.”9 increases in imported varieties have between an additional • Electronics: even products raised U.S. real income by about that were invented in the United States 3 percent).4 The estimated gains $450 billion and $1.3 would be much more expensive from future trade expansion range trillion per year in without relatively open borders. between an additional $450 billion Take the Apple iPod, for example.10 and $1.3 trillion per year in national national income, which As the lead firm, Apple contributed income, which would increase per would increase per capita capita income between $1,500 and 3 Scott Bradford, Paul Grieco, and Gary income between $1,500 C. Hufbauer, “The Payoff to America from $2,000 on an annual basis. Few other Global Integration,” in The United States options in the U.S. government’s and $2,000 on an and the World Economy: Foreign Economic Policy for the Next Decade, edited by C. policy arsenal can yield rewards of annual basis. Fred Bergsten (Washington, DC: Peterson this magnitude. Institute, 2005). Even these statistics, however, 4 Christian Broda and David Weinstein, 7 “Globalization and the Gains from Variety,” seem impersonal. To understand the Foreign Policy magazine, Bongiorni Federal Reserve Bank of New York Staff Report benefits of freer trade in the most related her biggest surprise from the no. 180, March 2004, p. 1. Accessed at http:// www.ny.frb.org/research/staff_reports/sr180. concrete manner possible, it is necessary experiment: pdf, July 2007. to conjure up a modern version of the “People know about the downside 5 http://www.ico.org/prices/m5.htm, accessed Janesville experiment. What would it be of trade with China — they think about July 2007. like to live in a world with prohibitively lost U.S. anufacturing jobs, and of 6 Sara Bongiorni, A Year Without “Made in China”: One Family’s True Life Adventure in high trade barriers? Consider the course that’s a painful issue for a lot of the Global Economy (New York: Wiley, 2007). effect of economic isolationism on the people — but one of the things I also got 7 http://www.foreignpolicy.com/story/cms. following products: to understand in a personal way was the php?story_id=3905, accessed July 2007. • Coffee: Erecting blanket benefit of access to often good-quality, 8 Edward Presser, “Toughest on the Poor: Tariffs, Taxes, and the Single Mom.” Progressive protectionism would cause most of low-cost goods. Our son outgrew his Policy Institute, September 2002. Accessed at America to experience massive caffeine tennis shoes, and they were the only pair http://www.ppionline.org/documents/Tariffs_ withdrawal. The United States is the of shoes he had. So I set out to buy new Poor_0902.pdf, July 2007. largest importer of coffee in the world, tennis shoes, and essentially all tennis 9 Ibid., p. 2. 10 Greg Linden et al, “Who Captures Value in a because our country can only produce shoes are made in China at this point. It Global Innovation System? The case of Apple’s a fraction of the 12 million kilograms took me a couple of weeks, but I finally iPod.” Personal Computing Industry Center, Irvine, CA, June 2007. Accessed at of coffee Americans consume each located these tennis shoes made in Italy http://pcic.merage.uci.edu/papers/2007/ month.5 that cost $68. Well, you can buy tennis AppleiPod.pdf, July 2007.

RIPON FORUM August/September 2007 19 its intellectual property, market allows U.S. firms to be leaders of the Washington, DC would fare in a world knowledge, and system integration pack at innovating new products and without coffee, without inexpensive to develop the iPod. It outsourced getting them to consumers as quickly shoes, and without ever-improving the manufacturing of the product as possible. consumer electronics. components to a number of East Asian For elected officials, trade These benefits are not trivial, and firms, however. This division of labor expansion is a tough policy position they should not be sacrificed on the allowed Apple to focus its energies on to advance. The costs of trade altar of protectionism. RF innovating a product that was attractive liberalization – import-competing to consumers, and captured most of firms going out of business, lost jobs – the profit stream. One assessment are concentrated. The benefits of trade Dr. Daniel W. Drezner is associate concluded:11 liberalization – lower prices, a wider professor of international politics [T]rade statistics can mislead as variety of goods – are diffuse. When at the Fletcher School of Law and much as inform. For every $300 iPod tallied up, however, the benefits don’t Diplomacy at Tufts University. sold in the U.S., the politically volatile just exceed the costs – they exceed He is the author, most recently, of U.S. trade deficit with China increased them by an order of magnitude.13 All Politics is Global: Explaining by about $150 (the factory cost). Yet, The best way to appreciate this fact International Regulatory Regimes the value added to the product through is to imagine what life would be like (Princeton University Press). assembly in China is probably a few with more expensive imports. This dollars at most. While Apple’s share of would be actually worse than a tax value capture is high for the industry, increase, because this kind of tax 11 Ibid., p. 10. the iPod’s overall pattern of value disproportionately hurts the poorest 12 Suzanne Berger et al, How We Compete capture is fairly representative. Americans. (New York: Doubleday, 2005), p. 77. 13 The Peterson Institute estimated the annual The iPod went from abstract Sixty years ago, the citizens of costs of trade liberalization to be $54 billion in concept to store shelves in under a Janesville learned a valuable lesson 2003; the benefits were estimated to be well 12 over $500 billion. See Bradford, Grieco and year. Importing intermediate products about the benefits of global integration. Hufbauer, “The Payoff to America from Global from the lower end of the supply chain One wonders how the denizens of Integration.”

Motorola is pleased to support the activities of the Ripon Society.

20 RIPON FORUM August/September 2007 Dark Days Ahead? A storm is brewing on Capitol Hill over the future of U.S. trade policy

Daniel Ikenson

The era of trade liberalization is strident anti-trade rhetoric adopted the agenda forward. dead. Yet it could get worse still. Not by its rank and file, they understood A grand bargain was struck in only have prospects for liberalization the importance of continuity in U.S. the spring, which was nothing more over the next few years been dashed, trade policy. With some modifications than a wholesale capitulation by but Congress is considering legislation to the U.S. trade agreement template the administration to Congressional that could precipitate a retreat from the to reflect Democratic priorities on demands for strict, enforceable labor trade policies and institutions and environmental provisions in that have served U.S. interests prospective trade agreements, for 60 years. including the four pending These are indeed dark days congressional consideration. for trade. The Democratic Party, But as the ink was drying, the which has grown increasingly Democrats moved the goalposts. hostile to trade over the past The South Korea agreement decade, controls the legislature. was deemed unsupportable The president’s authority to by House Ways and Means negotiate trade agreements and Chairman Charles Rangel (D- present them to Congress for an NY) and Ways and Means Trade up-or-down vote has expired, Subcommittee Chairman Sander and will not be renewed. The Levin (D-MI) because its terms do bilateral trade agreements not condition Korean automobile completed with South Korea, access to the U.S. market on the Colombia, Peru and Panama performance of U.S. automobile will likely rot on the vine, as exporters in the Korean market. Congress shunts them aside to Of course, such a provision, consider instead trade legislation which was put forward by that is either antagonistic or Rangel and Levin in the waning protectionist. And for the days of the negotiations, would first time in post-World War leave the U.S. auto producers II history, a multilateral trade in a position to decide just how negotiating round has ended in much competition it wanted from failure. The era of negotiation One thing that has become Korean producers. Accordingly, and accommodation may yield that provision was a nonstarter. to one of confrontation and clear this year is that Democratic The Colombia agreement was litigation. Party opposition to trade runs deemed unsupportable because the One thing that has become Uribe government allegedly has clear this year is that Democratic much deeper than the done an inadequate job of finding Party opposition to trade runs leadership has been and prosecuting thugs who have much deeper than the leadership willing to admit. terrorized and killed Colombian has been willing to admit. unionists over the years. Thus, When the Democrats assumed Democratic disdain for a right-of- control of Congress in January, labor and environmental issues, the center Latin American government, the party’s leadership whispered Congressional leadership would be which also happens to be one of the assurances that, notwithstanding the able to help the administration move few regional governments not openly

RIPON FORUM August/September 2007 21 hostile to U.S. policy, suffices for partners are cheating. politics. justification to deprive Colombian In China’s case the alleged But Republicans are on the hook citizens of the opportunity to improve cheating involves currency too. The strong pro-trade consensus their lots through better trade terms manipulation, subsidization of among Republicans that was so with the United States. industry, unfair labor practices, evident in the 1990s began breaking Consideration of the Peru hidden market barriers, dumping, and down in the early part of this decade, agreement was sidelined until other transgressions. Some of these as China’s economic emergence was Chairman Rangel and others have a allegations may carry a degree of truth, becoming evident. Steel- and textile- chance to visit Peru, see first hand but by and large the trade relationship state Republicans have presented how its factories are run, and possibly has been conducted within the rules some of the greatest obstacles to the change the agreement’s terms, again. and consensually, yielding huge Bush administration’s trade policy Democrats have used the labor benefits for Americans. agenda. conditions excuse to camouflage Big In any event, the proper course And by failing to make Labor’s real motive, which is to kill for redress for complaints is through a comprehensive case for trade deals at all costs. At least that the dispute settlement system of trade liberalization, the Bush truth now has been exposed. But the World Trade Organization. The administration itself bears some regrettably, the anti-trade objectives Bush administration lodged three responsibility for the current state of organized labor and import- formal complaints earlier this year, of affairs. Rather than talk about competing interests have dovetailed which are working their way through the benefits of imports, which keep conveniently with proliferating prices in check for consumers and misconceptions and myths about input costs competitive for producers, imports, jobs, and manufacturing to the administration has focused produce a phony sense of crisis. ...too many in Congress almost exclusively on the potential Most of the anti-trade legislation export gains from trade agreements, introduced this Congress is premised view exports as good, affirming the mercantilist world on the myth of U.S. manufacturing imports as bad, and the view of Congress. The U.S. Trade decline at the hands of rising imports, Representative’s office is fond of mostly from China. But U.S. trade account as the pitching further trade liberalization manufacturing is thriving. In 2006 scoreboard. by pointing to the U.S. trade the manufacturing sector achieved surplus with countries with which record output, record sales, record this administration has negotiated profits, record profit rates, and record bilateral trade agreements. But by return on investment. treating a trade surplus as a success Imports are not a bane for U.S. the process. Congress should metric, it’s only a small step to the producers. In fact, there is a strong allow that process to continue and conclusion that our overall trade correlation between manufactured restrain its urge to be seen doing policy is failing, given our nearly $1 imports and manufacturing output, as something. There is a distinct risk trillion deficit. U.S. producers account for more than that unilateral, punitive actions on The Bush administration’s quest half of the value of all U.S. imports. trade could severely damage the trade for further trade liberalization came When imports rise, output rises. relationship and lead to a contagious to a grinding halt when the 110th When imports fall, output falls. In deterioration of respect for the WTO Congress convened. But in many the past quarter century, imports have and its decisions. That, ultimately, ways the President’s trade policy increased six-fold, while real GDP would take us back to the days when legacy might be forged during its has grown by more than 130 percent, tit-for-tat trade wars were common, final 18 months. By holding the creating an average of 1.8 million net and uncertainty in trade prevailed. line against bad trade legislation new jobs each year. Plenty of blame for the current from an increasingly confrontational But policymakers fail to state of affairs rests with the Congress, the administration can acknowledge this crucial relationship. Congressional Democratic leadership, make the task less arduous for a Instead, too many in Congress view which has reckoned there is very subsequent administration to rebuild exports as good, imports as bad, and little political downside to receding the consensus for trade when the the trade account as the scoreboard. on trade, economic consequences political climate improves. RF Given the large and growing U.S. be damned. That position has the trade deficit, policymakers conclude blessing of Big Labor, and opposing Daniel Ikenson is associate director that we are losing at trade. And we the initiatives of an unpopular of the Cato Institute’s Center for are losing at trade because our trade president might prove to be good Trade Policy Studies.

22 RIPON FORUM August/September 2007 Politics & Perspective Reflections from the Perot Campaign of 1992 …and advice for third party candidates in 2008.

JIM SQUIRES

Being the first person Ross Perot hired to help him run for also-rans, Roosevelt and Perot each had significant impact on President 15 years ago, my signing up as a founding member of public policy. Though it is all for which dedicated reformers Unity 08, a group dedicated to a third party ticket for President can realistically hope, impact has not always been in the best next year, should come as no surprise. The world is filled with interest of even the mutineers, much less the Republic, and men of small hope and a history of futile gestures. may well not be this time either. Hope is alive, if barely, because if Roosevelt’s success should ever there was an opportunity for some bear an asterisk because as the independent-minded statesman to step incumbent President he faced none into this bog and right the listing ship of the usual obstacles facing third of state, this is it. The common refrain party challengers. But he did change among those of us who helped build history. His 27.4 percent of the vote, the Perot movement is, “If only we the most of any third party candidate, had him now.” The table appears set. insured the defeat of William Howard For a third party to succeed, one Taft, his former party’s nominee, and of the two majors has to be in trouble. handed the White House to Democrat We have one — the splintered wreck Woodrow Wilson. left by the “uniter not a divider.” Perot, who got the most votes ever Another essential is the absence in — nearly 20 million — changed things, either party of an obviously well too. He is often but falsely credited qualified, credible and charismatic with the defeat of President George nominee. No sign of one yet. A third Herbert Walker Bush. Although Perot necessary element is a galvanizing probably cost Bush some states, exit issue that will bring together people polls show that Bill Clinton’s voters who basically hate each other but were so evenly split between Bush agree that the two-party system isn’t and Perot that his electoral advantage producing effective leaders. And there could not have been overcome. Perot’s Ross Perot at the dedication of the new they are, all washed up on the same U.S. Air Force Memorial in Arlington, real contribution came in shaping island by the wake of the miserable Virginia in October 2006. the debate. The candor and vigor he Iraq invasion. brought to television politics and the But then there is the futility. Still tone of his media message clearly missing at this juncture is the element The common refrain steered the 1992 election discussion most critical to third party success away from a character assassination — a legitimate alternative candidate among those of us who contest where it was headed and able to lead the disparate, potentially helped build the Perot focused it on the economy. By forcing powerful and ever-growing band of movement is, “If only the two parties to acknowledge and the disenchanted. debate the then massive federal budget Two third party candidates in we had him now.” deficit, Perot jammed a balanced history who fit that mold and had federal budget down Washington’s the most success challenging the throat. And it was directly from system — Perot and President Teddy Roosevelt, who formed Perot campaign literature that Republicans took many of the a third party after losing the Republican nomination in 1912 principles for their successful 1994 Contract With America re- — both lost. But unlike most of the other hapless third party election campaign that eventually stripped away Democratic

RIPON FORUM August/September 2007 23 control of Congress. press planes, no spinning, no image advertising, no character The resulting GOP dominance of both the House and the attacks, no opening of sock drawers for inspection by reporters. Senate fostered some of the most rancorous partisanship in Only it didn’t work. history and the very gridlock Perot had campaigned against. So now, even more and more millions are needed to fight Unbridled partisanship has so paralyzed the federal government what amounts to an image distortion war on an ever-increasing for the last 20 years that no poll, no matter its source or bias, can number of media fronts. Anyone who seeks the office must uncover significant public confidence in either the President or have both an obscene amount of campaign cash and a turtle the Congress. Congressional scandals, White House arrogance shell defense against character assassination. Additionally, and the perception of decrepit government at every level have a third party candidate must also be shrewd and tenacious again opened the giant chasm of public disaffection where enough to overcome the same old barriers constructed by the third parties lie dormant. In the memorable words the founder two major parties that have been virtually “constitutionalized” of United We Stand once used to describe jobs that would be over the years. Through long dominance of state legislatures, lost under NAFTA, the next “giant sucking sound” you hear Republicans and Democrats have littered the landscape with will be independent candidates rushing to fill the void. laws making ballot access a nightmarish adventure for both A lot has changed in the last 16 years, but not the difficult independent candidates and their voters. nature of third party Wealthy, high challenges. That’s profile candidates — not all bad because all such as Perot and New third party challenges York Mayor Mike are not good for the Bloomberg — have a country. For instance, big advantage of not contrary to the media- having to start early to fostered myth, Perot raise money. So they was not just another can wait until the time rich egomaniac trying is right. There was to become the most talk of Perot running important man in the as early as the fall of world. Rather, he 1991, but not even he was in fact the perfect took it seriously until leader for a third after the public reaction political party taking to his interview on a system designed with Larry King on to work best with only CNN the following two, because Perot had His decision to quit in mid-campaign ... February. By then, a no desire or intention was not the hasty decision of a petulant Bush-Clinton general to be President. All he man, as many of his detractors would have election was clearly wanted was change. in the cards and an Those of us you believe. Rather, the underlying factor unsettling prospect for involved from the was the very real possibility many. Two months outset of the 1992 later, without spending campaign were in of looming success. a dime on television concert that Perot’s or radio, Perot was quest was not for the leading them both power of the White House but for reform of the way Presidents in the polls. Public interest in alternative candidates simply get there. Even some of the campaign professionals who came will not rise significantly until the number of Republican and and went didn’t realize that winning was never a goal; that the Democrat hopefuls has dwindled and available choices are campaign itself was an attack on the money-driven, emotion- clear. based, reality-distorting process from which they made their Unity 08, led by disenchanted veterans of both major living and which Perot felt was corrupting not only the electing parties, has been raising money and building an organization but the governing. for months. Yet its planned online nominating convention Unfortunately, then as now, campaign reform had no won’t take place until next June when there will be more big- resonance as a galvanizing issue with the media or even our name candidates from which to choose. Already, hundreds own reform-minded volunteers. Our alternative issue was the of thousands of committed independent voters are anxiously budget crisis which Perot pledged to “get under the hood and waiting this moment of disappointment, as are a handful of fix.” Around it we built the antithesis of a typical campaign: no potential nominees now posing as major party candidates.

24 RIPON FORUM August/September 2007 Though none are likely Presidents, the combination of computer cost him any chance of influencing the outcome, was not the networking, web-based fundraising and voter unrest guarantees hasty decision of a petulant man, as many of his detractors would them a chance — of at least having impact. have you believe. Rather, the underlying factor was the very real All will argue, as we did in the Perot campaign, that the possibility of looming success. The last thing Perot wanted was more voices heard during the presidential election the better. for his reform crusade to garner enough electoral votes to throw James Madison argued this very thing, terming this collective the Presidential election into the House of Representatives, where political debate “the public voice,” which he believed was the a vote along party lines could negate the popular vote. “What kind critical element in democracy’s most important decision-making of reform is that?” he once asked me. His concern was painfully process. alleviated by his comic pullout and re-entry, which became Over the years, with a few exceptions such as Roosevelt necessary only because the networks refused to run his purely and Perot, third party voices have had scant impact on either educational advertising campaign on the budget crisis — the election outcome or public policy. But very reason for his running in the first the disproportionate rise in influence place. The derision and embarrassment by extremists within the two major Those of us involved from accompanying the turnaround was parties is changing that. A resulting of little consequence to a man who proliferation of splinter groups and the outset of the 1992 believes the responsibility that single-issue candidates suggests all campaign were in concert accompanies citizenship only increases future U.S. Presidents may be routinely that Perot’s quest was not for those who seek to lead citizens. elected with less than majority support. Like a lot of other former Perot George W. Bush has already proved for the power of the White “volunteers,” my option to support a that not even winning the popular vote House but for reform of third party candidate next year remains is necessary. Such a climate makes third open — just in case. But the far better party campaigns easier to mount and the way Presidents get path for America is for the Democrat potentially more powerful than ever. there. and Republican parties to reject the But however much this has emboldened radicalism on their fringes, vent the the mutineers, they should be equally intolerance in their hearts, and muzzle terrified by the unintended consequences of their mutiny. the morally bankrupt, counter-productive, anything-goes politics Ralph Nader’s popular vote in Florida in 2000 deprived which has become so prevalent these days. Al Gore of the necessary electoral votes to defeat Bush. It also A third party is not needed. A lone Republican or a Democrat guaranteed his constituency eight years of public policy they will do, as long as he or she is a passionate patriot, good, smart abhorred, and may well have assured the country of the abominable and tough. and interminable Iraq war, which could go down as our greatest Like a candidate I once knew. Little guy, talked fast, wore foreign policy mistake ever. suspenders. RF Yet Nader is again making noises, increasing the chances that there will be more than one big name independent siphoning off Jim Squires is an author, the former editor of The Chicago votes in November 2008. What chance do we have that any of Tribune, and media advisor to Ross Perot. He now owns a horse them will understand the gravity of their pursuit as well as Perot? farm in Kentucky, where, among other things, he bred the His decision to quit in mid-campaign in 1992, which obviously winner of the 2001 Kentucky Derby.

Squires’ Rules for Third Party Success:

1) One of the two major political parties has to be in trouble.

2) The absence in either major party of an obviously well qualified, credible and charismatic nominee.

3) The presence of a galvanizing issue that will bring together people who may disagree politically but share an overall belief that the two-party system isn’t producing effective leaders.

4) The appearance of a legitimate alternative candidate who is able to lead the disparate but potentially powerful band of voters who are disenchanted with the major political parties and are willing to look at a third political party for a candidate to support.

RIPON FORUM August/September 2007 25 Soft News, Hard Sell: Treating the Audience as Consumers, not Citizens

Shanto Iyengar

With the 2008 election still more than a year away, failure of public policy: we are the only democracy that the campaigns are already in full swing with the usual does not require commercial broadcasters to provide at television advertisements, candidate debates, and least a minimal level of public affairs programming, endless commentary. But polling data indicates that and we have never nurtured a publicly subsidized thus far, voter awareness of the policy issues and the alternative to commercial television. In comparison solutions being offered is minimal. As of last month, with the public broadcasters of Europe, PBS is starved for instance, 60 percent of the public could not identify of public funding. Unable to act as a full service news the presidential candidate who best represented their organization, PBS attracts a 2 percent market share; views on health care. in Europe, public broadcasters average around 30 Limited public awareness of the candidates’ percent. At the same time, news organizations in our positions is symptomatic of a broader civic malaise deregulated market depend on advertising revenues in this country. In and hence audience a recent four-nation size. A documentary study of citizens’ on the conflict in ability to recognize Darfur is unlikely international and to generate high domestic news ratings, while news stories, Americans of Paris Hilton’s ranked dead last. histrionics is While 37 percent apparently riveting. of Americans knew Infotainment now that the Kyoto replaces news. Accords concerned The absence climate change, the of a viable public comparable figure broadcaster and the in Britain, Denmark highly competitive and Finland was media market mean over 70 percent. In that most Americans the case of Darfur, rarely encounter in- 47 percent of the depth programming Americans correctly identified the country in question about current issues. What news they do encounter compared with more than 60 percent of the Europeans. is heavily domesticated (most overseas bureaus have This substantial information gap on matters of public long since been closed) and presented in a manner affairs disappeared almost entirely, however, on designed to tantalize rather than inform. matters of pop culture, entertainment or sports. Here, In the case of campaigns, somewhat paradoxically, Americans were just as well informed as Europeans. the independence so valued by journalists exacts a The striking disparity in civic information between further toll on news coverage. Journalistic attention Europeans and Americans is attributable, in part, to to the “horse race” aspects of the campaign provides differences in media systems. Although it is widely an “independent” role for the media, is fairly cost- accepted as desirable that the media in a democratic effective, and does attract the attention of the public. society deliver a variety of perspectives on social issues, Hence the news is heavily laden with information about American news organizations have generally failed to fund-raising, the candidates’ standing in the polls, live up to these obligations. One reason is a simple speculations about campaign strategy, and professional

26 RIPON FORUM August/September 2007 analysis of the candidates’ actions. Far less attention one anticipates agreeing with (e.g. Republicans and is devoted to basic coverage of issue positions Fox News) or sources that share the voter’s concern (including encouraging candidates to articulate and about particular issues (e.g. gun owners and the defend those positions). The media seem to assume NRA). As news delivery/consumption is increasingly that the candidates’ positions on the issues are “old” customized, it becomes impossible to assure exposure news, hardly worthy of development. Of course, to differing viewpoints. “debates” are televised, but these events tend to take What can be done to increase substantive on the format of heavily scripted joint appearances in coverage of campaigns? An obvious first step is to which genuine engagement on the issues is limited as require that television networks and stations provide each candidate pursues his or her own pet themes. Not free time for candidates in the weeks preceding the surprising, in this election cycle, the election. Free time is a fixture in candidates have already publicly all European democracies, but the complained about “debate fatigue” The media seem U.S. broadcasting industry has – an experience probably shared by to assume that the successfully blocked adoption of the attentive public. candidates’ positions similar measures in the US. Given Is technology the answer to the the huge amounts of revenue station problem of superficial news and on the issues are “old” owners generate from political voter apathy? The recent presidential news, hardly worthy advertising (over $2 billion in 2006), debate sponsored by CNN and YouTube it is difficult to understand how they won praise for including “turned off” of development. can reasonably object to providing Americans -- especially younger voters small blocks of time for national -- in the political process. But will this and local candidates. (Many kind of new media involvement lead to greater political congressional races actually receive no televised awareness as well? Probably not. Indeed, there are several coverage at all today.) reasons to doubt that more media choices will lead to It is time for Congress to insist on a free time better informed voters. Political junkies will take full requirement for federal and state candidates; as owners of advantage of the Internet, but most of the public prefers the airwaves, the public is entitled to nothing less. RF E-Bay or ESPN to Washingtonpost.com. Moreover, technology is likely to segment the audience for news Shanto Iyengar is Professor of Political Science and -- like consumers of goods and services, people will Communications at Stanford University. His most seek out their “preferred” providers and ignore all recent book is Media Politics: A Citizen’s Guide (W. others. The preferred providers might be sources that W. Norton, 2007).

Ideas that matter, since 1965. RF65

RIPONRIPON FORUM FORUM August/September April/May 2007 2007 C127 Name: Chuck Grassley Hometown: New Hartford, Iowa Occupation: United States Senator, Family Farmer

Previous Jobs: Member of United States House of Representatives (1958-1975), Member of the Iowa House of Representatives (1975-1981), Assembly Line Worker (1961- 1971), Sheet Metal Shearer (1959-1961)

Individual(s) who inspired me as a child: I give my mother a lot of credit for my interest in government and history. Both were always an active interest of hers. She talked about issues and encouraged us at home to pay attention, develop points of view and stand up for what we believed in.

Historical figure(s) I would most like to meet: John Adams, Thomas Jefferson and Abraham Lincoln

Issue facing America that no one is talking about: the solvency of Social Security, Medicare and Medicaid

What the GOP must do to reclaim its congressional majority: Put forward a couple of new ideas, get back to our basic principles and convince the public that we’re going to stick to them this time.

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