John McCain: Globalization

DLeon p. 3

Republican John McCain wants to reduce barriers to trade. He “believes that globalization is an opportunity for American workers today and in the future” (John McCain 2008). He is against a protectionist-minded economy because he believes that globalization is an important issue and that the U.S. should be able, “to be at the table when the rules for access to those markets are written” (John McCain 2008).

McCain is pro-globalization; he states that, “‘I would negotiate a free trade agreement with almost any country willing to negotiate fairly with us. Only risks to the security of our vital interests or egregious offenses to our most cherished political values should disqualify a nation from entering into a free trade agreement with us’” (Campaign Issues 2008). He is extremely opposing protectionism. A women at a convention asked if he would “cut off all imports from China following the arrival of unsafe toys from the country,” to which he responded, “‘All I can tell you is I'm a free-trader, so I'm not your candidate. I'm sorry, but I'm not. I'm sure there are a lot of protectionists running for president on the Democrat ticket’” (McCain’s message on free trade).

McCain is also a supporter of NAFTA, the Gatt agreement and U.S. membership in WTO. United States involvement in the World Trade Organization would give them an edge in the global market. Also, a greater involvement in NAFTA would promote free trade in America. Lastly, his support in the Gatt agreement is because it would allow America to participate in free trade with other countries at lower trade rates in order to maximize efficiency.

Although McCain supports globalization, he knows that it will not lead to the immediate benefit of all Americans. He knows that globalization will cause many American citizens to lose their jobs or receive wage cuts. To this he has created a new solution: the New Square Deal. This new program would provide assistance to any person who has lost their job due to globalization. He says, “‘If someone has to work at McDonald's, I will compensate them for the loss of income for some period of time,’” (McCain’s New Square Deal). For example, if someone had a job at $60, 000 a year, loses their job, and gets another job at $30,000 a year, the government would give them about $15,000 a year for a couple of years after the lay-off. “This is a response by McCain—an ardent free trader—to globalization or, more accurately, his response to middle-class concerns about globalization so Americans won't turn protectionist” (McCain’s New Square Deal). This is just one of the few policies that John McCain has turned to in order to prevent American’s from turning protectionist.

This new plan would greatly relieve a large amount of pressure off of the many people who are laid off due to the outsourcing of labor. However, there is some opposition to McCain’s New Square Deal. For one, the New Square Deal would cost the government an estimated, “$400 billion to $500 billion a year” (McCain’s Big Economic Idea). This plan would be extremely costly and it would become a hassle if the unemployment rates rise and more and more people get laid off. Others, like Terry Miller, oppose the idea because they argue that, “that most job churn is caused by rising productivity and innovation, not outsourcing” (McCain’s Big Economic Idea). Overall, McCain’s New Square Deal is a program whose objective is to eliminate the fear of globalization. Workers would become less worried about being laid off which would create greater support for free trade with other nations.

Another way McCain will support globalization will be through banning internet taxes and other such taxes that prevent American innovation. According to McCain, “fervent commitment to innovation and new technologies sustain our global competitiveness” (Clinton and McCain on Globalization). He wants to provide a stable environment for entrepreneurs so as to keep the United States on a level field in the global market. “U.S. should engage in multilateral, regional, and bilateral efforts to reduce barriers to trade, level the global playing field, and build effective enforcement of global trading rules” (Clinton and McCain on Globalization).

McCain is met with strong opposition on his globalization policies due to its heavy costs and because of American fear of, “losing tech jobs to other countries and their citizens” (Clinton and McCain on Globalization). Democrats have been advocating the strengthening of the American economy through internal improvements. Both Barack Obama and Hilary Clinton oppose his globalization policies and both are supporting internal improvements and supporting H-1B visas. This employment of “smart” foreigners, according to Clinton, would greatly enhance the innovation of the American country which would in effect keep America from having to outsource jobs and other policies taken under globalization.

Watch McCain video on Globalization:






Works Cited:

· “Globalization.” On Globalization. 2001. The World Bank Group. 5 Feb. 2008 <http://www1.worldbank.org/economicpolicy/globalization/>

· Mary Hayes Weier. “Clinton and McCain on Globalization, Technology.” Information Weeks. 2008. Information Week. 5 Feb. 2008 <http://www.informationweek.com/blog/main/archives/2008/01/clinton_and_mcc.html>

· “McCain on Trade and Globalization”. 2008. Campaign Issues 2008. 4 Feb. 2008 <http://www.issue2008.com/mccain-on-trade-globalization/>

· “John McCain 2008”. 2008. On the Issues. 6 Feb. 2008. <http://www.johnmccain.com/Informing/Issues/0B8E4DB8-5B0C-459F-97EA-D7B542A78235.htm>

· “McCain’s message on free trade.” 2008. The Boston Globe. 7 Feb. 2008 <http://boston.com/news/nation/articles/2007/11/09/mccains_message_a_hard_sell_in_the_heartland/>
“McCain’s New Square Deal.” 2008. U.S. and World Report News. 7 Feb. 2008 <http://www.usnews.com/blogs/capital-commerce/2008/1/11/mccains-new-square-deal.html>