We Need Alexander Hamilton

Ernest Hollings, former senator of South Carolina, relies on early American history to compare the government and corporate approaches to trade. The second bill to pass through US Congress, in 1789, was a 50 percent tariff on all trade, which according to Hollings, allowed the US to develop its manufacturing and reduce dependence on Europe. Other presidents managed trade to nurture specific industries; Lincoln protected steel and Reagan pursued semiconductors. Such presidential focus on key sectors allowed the US economy to flourish. Hollings argues that recent presidential vetoes of protection measures for textile and other industries encouraged corporations to set up shop overseas. Approving NAFTA and extending WTO membership to China, without requiring Mexico and China to meet labor, environmental and judicial standards, encouraged corporations to re-locate – not just manufacturing but every stage of operations. As US firms struggle to compete and the government faces increasing debt, foreign entities can pay top prices for any type of property; thus, 8600 US companies were lost to foreign control over the last 10 years. Both Democrats and Republicans have contributed to the nation’s woes – the skyrocketing deficit, a shrinking middle class, and weakened democracy – as politicians wallow in campaign contributions from the multinational corporations that seek fast profits. For the US, Hollings urges ending tax benefits and H-1B temporary work visas, streamlining and enforcing trade policy, funding more basic research, as well as withdrawing from the WTO. The US cannot remain powerful without its manufacturing capability, and Hollings cautions that there are some protections that only government can provide. – YaleGlobal