My friend, David Bahnsen, took me to task for my previous post: Ron Paul blames U.S. for violence: Congressman: 'They're terrorists because we're occupiers'. I wrote:
There’s a false assumption that Ron Paul is an isolationist because he is supports a non-interventionist military and non-interventionist economic policy. But the other half of being an isolationist is to support economic protectionism (
tariffs, trade restrictions, etc). And Ron Paul and every libertarian I know of are 100% against the latter.
David replied:
Every Libertarian repudiates protectionism? Since when? Vast majority are rank NAFTA haters and trade blamers. Ron Paul too.
I disagree with David here. Ron Paul wrote an article Protectionism vs. Liberty where he took to task the Bush Administration’s 30% tariff on steel imports.
I am disheartened by the administration’s recent decision to impose a 30 percent tariff on steel imports. This measure will hurt far more Americans than it will help, and it takes a step backwards toward the protectionist thinking that dominated Washington in decades past. Make no mistake about it, these tariffs represent naked protectionism at its worst, a blatant disregard of any remaining free-market principles to gain the short-term favor of certain special interests. These steel tariffs also make it quite clear that the rhetoric about free trade in Washington is abandoned and replaced with talk of "fair trade" when special interests make demands. What most Washington politicians really believe in is government-managed trade, not free trade. True free trade, by definition, takes place only in the absence of government interference of any kind, including tariffs. Government-managed trade means government, rather than competence in the marketplace, determines what industries and companies succeed or fail.
We’ve all heard about how these tariffs are needed to protect the jobs of American steelworkers, but we never hear about the jobs that will be lost or never created when the cost of steel rises 30 percent. We forget that tariffs are taxes, and that imposing tariffs means raising taxes. Why is the administration raising taxes on American steel consumers? Apparently no one in the administration has read Henry Hazlitt’s classic book, Economics in one Lesson. Professor Hazlitt’s fundamental lesson was simple: We must examine economic policy by considering the long-term effects of any proposal on all groups. The administration instead chose to focus only on the immediate effects of steel tariffs on one group, the domestic steel industry. In doing so, it chose to ignore basic economics for the sake of political expediency. Now I grant you that this is hardly anything new in this town, but it’s important that we see these tariffs as the political favors that they are. This has nothing to do with fairness. The free market is fair; it alone justly rewards the worthiest competitors. Tariffs reward the strongest Washington lobbies.
On a personal note, I cut my economic eye teeth (so to speak) in college using Henry Hazlitt’s Economics in one Lesson. My economics prof was a true blue libertarian, and we used Hazlitt’s book for the entire semester of microeconomics. After 35+ years of being a libertarian, I have a pretty good idea of what libertarians believe about tariffs and free trade.
But back to David’s question about NAFTA. Ron Paul said:
NAFTA has nothing to do for free trade. It’s a pretense to lower tariffs, but it’s a reason to go talk to the WTO to raise tariffs. We need free trade. That’s very, very important. But you don’t get that by world government.
Ron Paul co-sponsored blocking NAFTA Superhighway & North American Union. Here’s the text of the Resolution against the NAFTA Superhighway (H.CON.RES.40) 2007-HCR40 on Jan 22, 2007
This resolution urges disengaging from the NAFTA Superhighway System and the North American because these proposals threaten U.S. sovereignty:
Now, therefore, be it Resolved:
- that the US should not engage in the construction of a NAFTA Superhighway System;
- that the US should not allow the Security and Prosperity Partnership (SPP) to implement further regulations that would create a North American Union with Mexico and Canada; and
- the President should indicate strong opposition to these acts or any other proposals that threaten the sovereignty of the United States.
I’m all for open and free trade with Canada and Mexico. But I’m not for anything that would compromise or reduce US sovereignty.
I think we can have it both ways: open, free trade without compromising our national and state sovereignty.
Thanks for the dialogue, David B!