Tuesday, November 06, 2007

Candidate Review - Fair Trade - Hillary Clinton

Hillary Clinton doesn't highlight her position on the economy - rather she talks about helping support the middle class, which I suppose is a bit better way to frame it. But she does have a Modern Progressive Vision - which does address free trade; both the problems and a solution.
Globalization and economic policy dynamics are generating rising income inequality. In 2005, all income gains went to the top 10% of households, while the bottom 90% saw their income decline – despite the fact that worker productivity has increased for six years. In 1970, the top 1% of households held roughly 9% of our nation’s income. In 2005, they held 22% -- the highest level since 1929.

. . . Eliminating incentives for American companies to ship jobs and profits overseas. Specifically, the tax code rewards companies for offshoring jobs by enabling them to defer paying American taxes for as long as they hold the money abroad. The current policy puts companies that create jobs in America at a competitive disadvantage. We must pursue tax policies that reward the decision to create jobs in America, rather than abroad.
I'm usually pretty down on Clinton, but this isn't bad at all. She has a good diagnosis and a good treatment.

That said, there are other incentives besides tax breaks that induce American Corporations to move over seas. Such as the opportunity to pay their workers considerably less, and the relaxed environmental standards. I'd obviously like to see her plan address those issues as well.

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