Wednesday, January 25, 2012

Gingrich in 1986: Reagan Trade Policies a "Gimmick"

Newt Gingrich has been playing to the Reagan model quite heavily during his run for the Presidency. In 1995 Nancy Reagan said that her husband's torch had been passed to the House Speaker.

But what did Gingrich say about Reagan during his term. Many articles have come out with both Gingrich supporting and opposing various Reagan initiatives. By looking back through the news of the Reagan Administration what Newt believed about various aspects of his presidency.

In 1986, a Republican economist, James Clipton, urged tariffs to diminish the United States' trade deficit. This flew directly in the face of Reagan's free trade policies. While the United States has knocked down many tariffs since then, Congressman Newt Gingrich was clear about Reagan's position, as quoted in the Orlando Sun Sentinel.

Citing writings by 17th century economist Adam Smith, often called the father of free trade theory, Gingrich said the United States must retaliate when faced with unfair competition from foreign competitors.

"Free trade is a gimmick," Gingrich said. "Free trade is a slogan, and the majority of the people who will tell you that we must have it have never read Adam Smith and don`t know that he considered it an ideal model only, a theory."

Hmmmm. President Reagan's economic policies garnered the United States 25 years of growth. Doesn't sound like a gimmick to me.

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1 comment:

  1. Horse feathers.

    Reagan imposed huge tariffs on Japan for just the reasons Gingrich cited including 100% tariffs on Japanese electronics. Balanced trade with new markets makes sense, trade surpluses make sense. Being bent over by socialist governments intent on dumping their products on American markets in order to destroy critical industries on the other hand is foolishness bordering on treason.