We Can Only "Hope" for "Change" in 2012,....
President Hu Jintao visits the United States as leader of an industrial juggernaut and heir apparent to American global economic leadership.
China is growing at a breakneck pace, its exporters capturing a lion’s share of global markets in strategic industries, and its citizens enjoy rising prosperity and economic security. The United States, meanwhile, endures mediocre growth, its businesses fleeing for Asia and Russia, and its citizens live with falling wages and uncertain futures.
This is not how the historic struggle between socialism and capitalism was to end, but it is how President Obama willed it. Abroad, the President refuses to defend American capitalism, and at home, he recklessly abuses private enterprise.
International competition between China and the United States is governed by rules — spelled out by the World Trade Organization and other agreements. President Obama has stood idle while China violates the letter and spirit of those rules to boost exports, restricts imports and enjoy steroidal growth that handicaps U.S.-based businesses and destroys American jobs.
Krugman, Bergsten and I have suggested strategies — an import tax, counter invention in currency markets by the Treasury and a tax conversion of dollars into yuan.
Last fall at the UN, President Obama exclaimed if China does not move the United States can act unilaterally. Hu called Obama’s bluff, and the President flinched.
No surprise — China won’t let markets determine the value of the yuan anytime soon.
The President could impose procurement requirements on turbines, solar panels and other products purchased with government money, and impose countervailing duties on Chinese subsidies, but he has been too busy handicapping U.S. private enterprise to be bothered.
The President obsesses endlessly about increasing social spending and federal taxes, and imposing regulations that raise the cost of doing business — for example, new health-care taxes and reforms, new ineffective but burdensome bank regulations, and new permitting rules shutting down U.S. oil and gas development.
At least the Romans could take solace — they did not elect Nero. Americans chose Barack Obama to heap kerosene on anyone seeking a profit.
Missing Bush yet???