The argument against free trade with nations that "unfairly" subsidize their industries is a cogent one.

Does "countering the currency interventions and financial investment incentives of the export led economies of Asia and Europe" equate to trade restrictions or does it aim to level the playing field while not affecting trade?

If it is trade restrictions, would it precipitate a global recession/depression of the 1920 kind?

Would (1) reducing regulatory and social welfare (Obamacare) costs/burdens on industry, (2) encouraging energy exploration (gas, oil, and renewable sources if economically viable) (3) reducing deficits in the near term, and (4) the debt in the long term, spur economic activity?

Except for (1), these are long term fixes. Would "help being on the way" guarantees be sufficient to turn the tide?

These are two fundamentals that free trade agreements modify for the US. FTAs tend to outsource US production because of a large US population and much stronger consumer spending power of an American citizen. Increased US consumerism then results through lower product prices because of the average American's inability to save money due to seeking an unaffordable standard of living.

On the topic of US middle class wage stagnation over the past 40 years...I haven't seen enough info on how the increased labor supply has affected US wages. There are two major events that have affected labor supply: one is the US feminism or "Mary Kay" movement that started opening up the labor market to millions of women. The second expansion of the labor pool involves FTAs, which were used as a political tool to draw countries away from the Soviet Union. This expanded foreign labor pool has had a direct effect on US job culture. Less unskilled or low skilled US jobs is one factor of the boom in young Americans seeking college degrees for jobs. This has diluted their labor pool and now you see many college grads without jobs...or competing against one another for unskilled jobs.

So what's my take on this? The foreign labor pool must be reduced. US industrial policy, sensible trade agreements, and ways of maintaining competitive advantage such as limiting technology transfer outside the US are places to start. This creates demand for products that are no longer being imported (or competitively imported) that the US will have to make itself. Since these products are being made in the US now, prices will go up. Rampant consumerism will partially decline along with the corresponding "standard of living". In exchange for this living adjustment, we'd have more US jobs. If this creates enough US jobs, we'll have higher wages from increased labor demand and decreased available labor supply.

Free trade s great when everybody is playing by the same rules, but nobody really practices free trade. Every country protects certain industries such as American farm subsidies. Politically, free trade is hard to implement its hard to convince workers that it is OK to see present jobs move abroad with the promise that America will gain more jobs in industries in which it has a comparative advantage in the future. A country such as China who's political legitimacy is based on the tacit agreement of economic growth and jobs in exchange for a hold on political reform. China has every incentive to use beggar thy neighbor policies that might be short sighted, but keeps people off the streets. As long as countries can use policies to bolster their economy even at the expense of others they will do it. The US seems to be the only country that still pushes for free trade even though the rest of the world has no intention of playing by the rules. Its like in baseball when everyone was using steroids. The players who didn't use were left behind. Yes it was cheating but you have to do what you have to do to get ahead.

The whole POINT of "GREEN" is "saving the planet", not "jobs" in any particular location.

If "save the planet" technology comes from China at as low cost for international consumers as possible, that is the best news possible for "saving the planet".

Lawson will be in Sydney in six weeks to expound his views at a public debate on the proposition: "We need a carbon tax to help stop global warming."

The combatants themselves should raise temperatures. The former British chancellor of the exchequer and energy secretary will lead a negative team comprising former Keating government minister Gary Johns and University of Adelaide geologist and author of the sceptic's bible Heaven and Earth, Ian Plimer.

The affirmative will be put by two former opposition leaders, John Hewson and Mark Latham, backed by University of NSW climatologist Benjamin McNeil.

Lawson says it is scientifically established that increased carbon dioxide emissions will warm the planet, but adds, "it is uncertain how great any such warming would be and how much harm, if any, it would do". He urges governments "to consider the damaging economic impact of blindly following the climate change agenda".
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Here are the actual estimated effects of the Korea FTA, according to the USITC. They seem to indicate a net *reduction* in trade deficit.

• U.S. GDP would likely increase by $10.1–11.9 billion as a result of tariff and tariff-rate quota (TRQ) provisions related to goods market access.
• Merchandise exports to Korea would likely increase by an estimated $9.7–10.9 billion as a result of tariff and TRQ provisions.
• Merchandise imports from Korea would likely increase by an estimated $6.4–6.9 billion as a result of tariff and TRQ provisions.
• U.S. services exports would likely increase as a result of the FTA, given the increase in levels of market access, national treatment, and regulatory
transparency that would be afforded by the FTA in excess of the current General Agreement on Trade in Services (GATS) regime.
• Aggregate U.S. output and employment changes would likely be negligible, primarily because of the size of the U.S. economy relative to that of the Korean economy.

For the full text, visit http://www.usitc.gov/publications/docs/pubs/2104F/pub3949.pdf

As you have alluded to in other articles part of the problem we face as a country is that while Chinese subsidies of their corporations grows we are cutting the jobs at the US Department of Commerce that are focused both on promoting US exports and on keeping check on competitors such as China that are breaking trade agreements and international trade rules. To protect American jobs we need the professional diplomats that are stationed in places like China and are trying to protect US business (job) interests. But instead of strengthening these efforts we are instead cutting these positions, closing trade offices, and giving up.

Congress and the President need to reverse this insanity.

who one believe that Evergreen Solar -face bankrupcy previous years ago
. now they face it because can not compete with china (santafedehumidifier), (soleusdehumidifier, rubbermaidtrashcans), one of the cause is the goverment of china give subsidy to its company to face other competitor in others country. Chinese government is also providing low cost utilities, free land, and subsidized capital to its manufacturers.(rubbermaidtrashcans, simplehumantrashcan), beside that USA now face economy crisis from 2008. so it is hard when USA give sbsidy to its company simplehumantrashcan)
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Clyde, thanks for your mention of the Booz & Company report, which is called Manufacturing's Wake-up Call - by Arvind Kaushal, Tom Mayor, and Patricia Riedl. For those who are interested in seeing it, we've just posted it at the website of our magazine strategy+business:

It's at: http://www.strategy-business.com/article/11306.

We also have an interview with you (Clyde) up on the same site, called The Case for Intelligent Industrial Policy:

http://www.strategy-business.com/article/11306

Both links require free registration.

With much regard, Art

Nice job so far.
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A country such as China who's political legitimacy is based on the tacit agreement of economic growth and jobs in exchange for a hold on political reform. China has every incentive to use beggar thy home_renovations neighbor policies that might be short sighted, but keeps people off the streets.