Free Trade, Low Taxes is Right Prescription to Grow Economy

El Paso Times
March 17, 2008

 

 

In recent weeks along the campaign trail, Democratic presidential candidates have filled the airwaves with their distaste for America's current free trade agreements, including NAFTA. But they have been conspicuously quiet on this issue in Texas. That is because these accords have proved a tremendous success for our state and a boost for our economy, particularly along the border. 

 

Texas leads the nation in many areas, and trade is no exception. Our state is arguably the leading exporter, and also led the nation last year in new jobs added to the payrolls. Free-markets and an open trade policy made an important contribution in this effort.

 

Since implementation of the North American Free Trade Agreement (NAFTA) in 1994, trade among participating nations has more than tripled, and Texans have been enjoying the business.

 

El Paso is a good example of the agreement's positive impact in Texas. In the past fifteen years, the city population has grown and unemployment is down, in part because of an increase on exporting goods and services. The trade agreements have helped, as have other economic policies implemented in recent years.

 

Texas has long benefitted from low taxes, responsible spending and open trading with our neighbors.  As a result, while many states face downturn, Texas generally continues to see low unemployment numbers and positive economic growth.

 

NAFTA has been a key part of Texas's recipe for success and growth, one that we cannot afford to lose.  

 

Freezing NAFTA and other trade agreements, as some Democratic Senators are advocating, is the wrong prescription to strengthen the economy. On the contrary, we need more free trade.  (It is ironic that Democrats say America should work more with other countries, yet their trade policies would shut us off to the rest of the world.)

 

In addition to free trade, low taxes and limited government help entrepreneurs create jobs. But during this year's budget process currently underway, Senate Democrats are seeking record tax hikes on working families and increased pork project spending. The majority's budget does nothing to return money to those who work hard to earn it-the taxpayers.

 

In addition, the current budget proposal does nothing to rein in wasteful spending. Instead, it pushes the burden of today's bills onto tomorrow's generation. Unfortunately, the tax and spend mentality continues to grow in Washington. It is a serious threat to economic growth not only in Texas, but throughout the country.

 

If we don't act now to rein in out of control spending, within the next thirty years America will only be able to afford four programs-Social Security, Medicare, Medicaid, and a fraction of the interest on the debt. We won't be able to effectively fight the war on terror or secure our borders. Our government is living on borrowed funds, which will one day have to be paid back, not by us, but by our children and grandchildren.

 

As Congress continues work on the budget, we need to keep in mind the impact of our actions today. We need to cultivate an environment across the country that favors a strong economy and job creation.

 

As the dust settles after the primary and the last national cameras leave Texas, it is important that we remember the essential traits that have made Texas so prosperous. Let's continue to push for low taxes, less government regulation and increased free trade.

 

 

U.S. Sen. John Cornyn is a member of the President's Export Council and the Senate Budget Committee