Katie Hallen -- Consumer Electronics Association President & CEO Gary Shapiro told the Detroit Economic Club last Monday that free trade and innovation held the key to the economic resurgence of the city and its auto industry. (Video of the speech is here).
The Detroit Free Press reported that Shapiro said in the speech:
"It is true that free trade hurts some people in the short term -- but we must look at the big picture and what's best for our nation. An American worker who lost her manufacturing job may assume it was lost to someone overseas. Indeed, protectionists repeatedly talk about the 3 million manufacturing jobs our nation has lost in the last decade. But what about all the jobs open markets and free trade have created?...
"Detroit leading the opposition to this agreement only reinforces the perception that Detroit automakers cannot compete. Imagine if Detroit was to come out in favor of free trade. Say, 'Hit me with your best shot.' The world's perception of Detroit would change."
Shapiro’s message to Detroit was important for those in the community beaten down by union and political leaders blaming the city’s woes on globalization and free trade agreements. In a speech last month, UAW President Ron Gettelfinger deemed a free trade agreement with South Korea the “theft of American jobs.”
As Shapiro pointed in an accompanying Detroit Free Press op-ed:
“Detroit has all the ingredients for a successful turnaround: a highly skilled workforce, a modern international hub airport, and a surplus of reasonably priced housing, commercial and industrial space.”
America’s innovation boom, driven in large part by trade and globalization, has created 25 million U.S. jobs.
In recent weeks, trade – particularly NAFTA – has emerged as a hotly contested subject in the presidential debates, with most of the tension focusing on jobs. You might have heard a mention or two of NAFTA in Ohio (not so much in Texas, where trade is seen as a benefit to the economy).
This undercurrent of protectionism challenges America’s very place as a global superpower in a flatter world. Free traders say America should compete and win, while protectionists want to rescind free trade agreements and close our borders to imports and exports alike.
With the national debate seesawing on this conflict of global competitiveness versus isolationism, it’s particularly noteworthy that Detroit takes center stage. FDR, in a 1940 fireside chat coined Detroit “the great arsenal of democracy.” He was referring to the auto industry manufacturing weaponry for World War II soldiers. But historians have since adopted the phrase to explain America’s transition from an isolated nation to a global purveyor of democracy.
Trade in my mind is intrinsic to democracy. Economic mercantilism (essentially what Dobbsian protectionists want) historically has led to imperialism. It’s a lesson we should keep in mind as we forge our new economy.
Note: CEA is a 463 client.
(Flickr photo credit)