"Mankiw speaks the truth on trade, and Democrats go postal," Daniel W. Drezner headlines in a post re the White House Council of Economic Advisers Chairman's presentation of the "Economic Report of the President" before Congress yesterday. Manckiw re outsourcing:
The benefits from new forms of trade, such as in services, are no different from the benefits from traditional trade in goods. Outsourcing of professional services is a prominent example of a new type of trade . . .
To help workers adversely affected by trade develop the skills needed for new jobs, the Administration has worked hard to build upon and develop programs to assist workers and communities that are negatively affected by trade.
Unfortunately, "as I've argued ad nauseum," notes Drezner, "Mankiw's correct on the economics, [but] on the politics, it looks like he's stepped on a land mine." Tom Dashle registers his usual "concern":
"If this is the administration's position, I think they owe an apology to every worker in America . . . There is absolutely no justification for arguing that we could support jobs going overseas, especially under these circumstances."
"Actually, the Senator owes an apology to every consumer in America," comments Drezner, "but I'm not going to hold my breath in wait."