By ERNEST F. HOLLINGS, former U. S. senator
2010 -- Talking to an in-the-beltway friend in Washington, we both lamented
that the Obama administration was so inept. My friend called "in-the-beltway"
the "logic free zone." The Obamas continue to bail the sinking
economy boat as fast as they can with stimulation and tax credits and
are totally oblivious to the off-shoring hole in the bottom. As Paul Craig
Roberts, former Assistant Secretary of the Treasury for Ronald Reagan,
states: "The only way the United States will again have an economy
is by bringing back the off-shored jobs."
jobs commenced fifty years ago and hemorrhaged under President George
W. Bush, losing almost one-third of our manufacture and manufacturing
jobs. But it's so easy to fix. All we need to do is start enforcing our
trade laws to rebuild the economy. First, we need to give the economy
a traumatic shock to reverse its direction: stop off-shoring by removing
the tax incentive to off-shore, create jobs, boost exports, and pay down
the debt by replacing the corporate income tax with a 5% VAT. A 5% VAT
raises $600 billion. The corporate tax of 2010 is estimated at $156.7
billion, leaving $443.3 billion to stop borrowing from China and pay down
the national debt. This approach would be difficult for members of Congress
to vote against.
Tom Harken recently emphasized: "Of any free time you have, I would
say 50%, maybe even more," is spent on fund-raising. Our hope is
that the voters would see through this dilemma and pressure the President
and Congress to give the priority to governing rather than fund-raising.
But the free press fails to alert the voters. The trade war and off-shoring
our economy is "top secret" with the free press. The free press
psychoanalyzes President Obama from every angle, continuing to ignore
the trade war and the off-shoring of our economy.
can't rebound and we'll continue to act like a "bunch of spoiled
brats" so long as the free press treats the trade war and off-shoring
of the economy "top secret."
Senator Hollings of South Carolina served 38 years in the United States Senate, and for many years was Chairman of the Commerce, Space, Science & Transportation Committee. He is the author of the recently published book, Making Government Work (University of South Carolina Press, 2008).
© 2010, Ernest F. Hollings. All rights reserved. Contact us for republication permission.
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