Robert Reich: Trans-Pacific Partnership just more “trickle down” economics at work

There’s been a lot written about how awful the negotiated in secret Trans-Pacific Partnership would be for America, but former Secretary of Labor Robert Reich has an excellent take on how the Trans-Pacific Partnership is just more of the so-called “trickle down” economics that conservatives are so fond of, but which have been proven time and time again to be ineffective.

Now comes the Trans-Pacific Partnership.

It’s being sold as a way to boost the U.S. economy, expand exports, and contain China’s widening economic influence.

In fact, it’s just more trickle-down economics.

The biggest beneficiaries would be giant American-based global corporations, along with their executives and major shareholders.

Those giant corporations initiated the deal in the first place, their lobbyists helped craft it behind closed doors, and they’re the ones who have been pushing hard for it in Congress — dangling campaign contributions in front of congressional supporters and threatening to cut off funding to opponents.

These corporations made sure the deal contains provisions expanding and protecting their intellectual property around the world, but not protecting American jobs.

Supporters of the deal say it contains worker protections. I heard the same thing when, as secretary of labor, I was supposed to implement the worker protections in the North American Free Trade Act.

I discovered such provisions are unenforceable because of how difficult it is to discover if other nations are abiding by them. On the rare occasion when we found evidence of a breach we had no way to force the other nation to remedy it anyway.

The Trans-Pacific Partnership is far larger than NAFTA — covering 40 percent of America’s global trade.

If it’s enacted, American workers and consumers will be made even worse off because of another provision that allows global corporations to sue countries whose health, safety, labor, or environmental regulations crimp their corporate profits.

It establishes a tribunal outside any nation’s legal system that can force a nation to reimburse global corporations for any such “losses.”

Here’s some video from Reich explaining more about the “trickle down” Trans-Pacific Partnership.

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10 thoughts on “Robert Reich: Trans-Pacific Partnership just more “trickle down” economics at work

  1. Zach, appreciate your leadership on this.

    “AFL-CIO’s Trumka: USTR Told Us Murder Isn’t A Violation Under U.S. Trade Deals”

    “Defenders of the White House push for sweeping trade deals argue they include tough enforcement of labor standards. But a top union leader scoffed at such claims Tuesday, revealing that administration officials have said privately that they don’t consider even the killings of labor organizers to be violations of those pacts.

    Richard Trumka, the president of the AFL-CIO, testified to that claim at a Senate Finance Committee hearing on legislation to grant President Barack Obama so-called fast-track authority to cut at least two new enormous trade agreements with Pacific Rim nations and the European Union. It appears to be the first time anyone has revealed such a stance on the part of a U.S. government that has been touting its efforts to improve wages and working conditions among its trading partners, relying in part on trade agreements.

    “When you say, ‘Oh these are some standards, they’re better than no standards,’ we were told by by the [United States Trade Representative] general counsel that murdering a trade unionist doesn’t violate these standards, that perpetuating violence against a trade unionist doesn’t violate these agreements,” Trumka said, directing his remarks to Sen. Mark Warner (D-Va.), who backs the deals.

    Trumka pointed specifically to the Colombia trade pact that was signed in 2006, but passed by Congress in 2011. Trumka said that even after the Obama administration crafted an agreement to tighten labor protections four years ago, some 105 labor organizers have been killed, and more than 1,300 have been threatened with death.

    “Excuse me. Excuse me if I’m not willing to accept that standard.” Trumka said.”

  2. “Obama Is Selling the TPP Trade Deal Just Like Al Gore Sold NAFTA”

    “But Obama’s arguments are old and tired, too. They come from a playbook for how the last Democratic administration sold a free trade deal opposed by unions and the party base. Watch this 1993 CNN debate on the North American Free Trade Agreement (NAFTA) between Vice President Al Gore and Ross Perot:

    Gore made a distinction between previous trade deals with Japan and China, and NAFTA, with its side agreements on labor and the environment. Critics of NAFTA “confuse the bad trade deals in the past with this one,” Gore said. “We’ve got a commitment for the first time in history to use trade sanctions to compel the enforcement of their environmental standards.”

    This mirrors Obama’s claim about inferior prior deals—including NAFTA. “Not every trade deal has lived up to the hype,” Obama acknowledged to Vox’s Matt Yglesias. He’s even suggested that TPP, which includes Mexico and Canada as signatories, can fix NAFTA. Democrats sell these agreements by renouncing the past, in an attempt to insulate themselves from criticism about trade.”

    http://www.newrepublic.com/article/121670/obamas-tpp-arguments-mimic-gores-nafta-defense

  3. “U.S. Trade Gap Widens on Surging Imports”

    “The March expansion in the U.S. trade gap was the largest in nearly two decades, suggesting that international commerce was a significant drag on economic growth to start the year.

    The trade deficit widened by 43.1% to a seasonally adjusted $51.37 billion in March, the Commerce Department said Tuesday. That was the largest monthly expansion in the trade gap since December 1996 and the largest deficit reading since October 2008.

    The expanding trade gap was driven by the largest increase in imports on record. That indicates that foreign goods flowed steadily into the U.S. in March after months of being stalled by a labor dispute at West Coast ports. Imports rose 7.7% to $239.21 billion in March.

    Meanwhile, overseas demand for U.S. goods and services remained modest. Exports increased 0.9% from February to $187.84 billion.

    Surging shipments of those products could also suggest that a stronger U.S. dollar is supporting domestic demand for foreign goods.

    The dollar has gained against most other currencies in recent months. A stronger dollar makes foreign goods and services relatively more affordable, though it also makes U.S. exports more expensive in overseas markets.

    In addition, slowing economies in parts of Europe and Asia have lessened demand for U.S. goods and services.”

    http://www.wsj.com/articles/u-s-trade-gap-widens-on-surging-imports-1430829294?mod=djemalertNEWS

  4. Yes sir, John Casper. Nice work researching this “War AGAINST the World.” May I mention the Kochtopus brothers? (The Keystone Kochtopi.) Trumka’s right: it’s t’hell with labor organizers as Trumka warned. And forget about trying to protect nature.

    “Not every trade deal has lived up to the hype,” Obama acknowledged [and] even suggested that “TPP, which includes Mexico and Canada as signatories, can fix NAFTA.”

    Just lift the ban on oil exports and…voila! Nafta is fixed and Mexico purchases petroleum from U.S after public utility corporations ok Keystone: http://www.bhpioneer.com/local_news/article_1f6bb926-edbc-11e4-8087-1325c8a9b812.html

    http://www.csmonitor.com/Environment/Energy-Voices/2015/0505/This-deal-could-completely-change-North-American-energy-dynamics

    http://oilprice.com/Energy/Crude-Oil/A-Potentially-Massive-Win-For-Fracking-In-Texas.html

    http://www.nationalobserver.com/2015/05/04/news/how-canada-made-koch-brothers-rich

  5. Five people attended my TPP House Party at my home last night. The Youtube video of President Obama’s speech on the TPP, given at the OFA Annual meeting April 23rd, gave us a better understanding of the issues this trade agreement addresses. David Simas, Special Deputy to the President, answered questions from members of the 30 house parties hosted across the country. The person opposed to the TPP left my home with his opposition to TPP weakened and with a better understanding of what the President is trying to do. Here is the link to the President’s remarks: https://www.youtube.com/watch?awesm=ofa.bo_r4w1&v=NOEPj3uPW38

    There was no one in attendance from the Blogging Blue community. You were missed!

    1. Paul, I’m not interested in the president’s propaganda on the TPP. I’ve read extensively about TPP, and I’m inclined to fall on the side of folks like Robert Reich, Paul Krugman, and Sen. Elizabeth Warren when it comes to what the TPP would do to our country.

    2. Yes, at this point it was way too late for a representative of Obombya to explain where Barry had placed his walking shoes in support of WI labor against Act 10.

      Apparently Barry is out at the NIKE US HQ today promising them something for all the jobs that corporation has already off-shored from the USA. Maybe they promised him a new pair of shoes to run faster from US labor interests.

    1. And with fast track authority Congress only gets an up or down vote, no amendments or changes to anything. So in the written portion of your link, “unless Congress allows it,” how’s that work under fast track treason authority?

      How about the two full chapters of the agreement that don’t even become public until four years out? Any insider information on that to share? Nothing new but the continued lies from the potus (minor case intentional) and a personal attack on Warren’s integrity. I’d label that as one key “tell,” from Obombya.

      How about you defending this steaming pile in your own words? You are getting the big OFA bucks, aren’t you? Answer that question and we’ll all know who to trust or not.

    2. Paul you are an out and out liar on this topic, so is Obombya and you are no friend of Democrats anywhere except possibly the wealtiest 1% who declare Dem allegiance. I and many others here already understood Fast Track (treason) Authority for some time now. Here is another affirmation of our view.

      http://www.correntewire.com/obamas_nike_speech_he_should_really_stop_lying_about_tpp_secrecy_and_his_surrender_of_sovereignty

      Let’s hear a defense of the TPP directly from your keyboard, or we all can assume that what is said in this comment is the unvarnished truth. What in terms of “Judas,” dollars is your OFA status worth to you?

      How does it feel to be colluding in treason against the citizens of the US?

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