A $42 Billion Stimulus That’s Almost Free

by John Murphy

Last February, Congress approved a $168 billion stimulus package to help the flagging U.S. economy.  Today, some members of Congress are proposing an additional stimulus package with a price tag that could reach $50 billion.  But awaiting Congressional action are three bills that together would provide a comparable stimulus for the U.S. economy at a very modest cost to the American taxpayer.

A new analysis by the U.S. Chamber of Commerce shows the pending trade agreements with Colombia, Panama, and South Korea would provide an immediate boost for American workers, farmers in companies worth tens of billions of dollars.  In fact, the Chamber estimates that enacting the three agreements would boost U.S. exports by more than $42 billion within five years.

This estimate is conservative because it assumes exports won’t grow as quickly as they have under new trade agreements.  In fact, U.S. merchandise exports to Chile, Morocco, and Bahrain — to name three of our new trade agreement partners — have been growing at a blistering pace (U.S. exports have seen annual growth rates to these countries of 75%, 74%, and 41%, respectively).  The Chamber analysis is based on conservative assumptions, and it probably "lowballs" the likely benefits.

We supported last February’s stimulus package as an effort to boost the economy, and we strongly support the additional stimulus provided by these trade agreements.  And even better, the cost for this "stimulus package" would be modest — foregone tariff revenue that is measured in millions, not billions, of dollars.

Few Americans know that exports have already been generating an impressive two-thirds of U.S. economic growth over the past year (67% in Q3 2007 – Q2 2008).  Opening up foreign markets with new trade agreements will allow American workers, farmers and companies to accelerate that growth and compete on a level playing field. 

This unique stimulus package adds up to jobs and growth at a time when Americans need both.  Congress simply needs to approve the trade agreements with Colombia, Panama, and South Korea.  Click on a country to do your part.

Comments

[Robert Miller]

The Chamber program sounds better, but it needs to provide money NOW to people. We are suffering with increased energy costs, increased food costs, increased taxes. Everything has gone up, except incomes.

[W.R.Birchall]

Get of my back! Go get the trade agreements and while about it, completely forget your God forsaken stimulus package. Spend the money to have someone who can add two and two come into congress on one of your many holidays and teach you a bit about economics