The NewsHour last night covered the topic of free trade and how the 2006 election results tie in with how most Americans feel about international trade deals in general. Now frankly, I love how every time the media wants to talk about politics, they mention Iowa voters. It is almost trendy now to associate political debates with states like Iowa and Missouri. However, in the case of trade, NewsHour had it right. People here in Iowa, in general, do not like free trade. They see it as hurting their jobs and leading to anxiety over how their children will prosper in a diverse world economy. Speaking as someone who lost his job this last Spring and who had to hunt down a new job, I can tell you that it is not just the poor that have this notion that international trade is bad for their own individual economies, but the middle class who is deeply concerned about the economic situation. The continuing trends of rising healthcare costs, job insecurity, and minimized educational opportunities are causing the middle class to panic. We pay more in insurance premiums, prescription drugs, student loans, while at the same time working more dynamic and less secure jobs. Tax cuts do nothing to minimize these stresses, in fact they make the situation worse. As government removes more social programs and raises interest rates, the middle class sees how bad the poor are doing, and know that they are exactly three paychecks away from becoming poor themselves. It is in this climate that politicians who talk about NAFTA and other such international trade deals, will find little support for such policies.
Perhaps we as a nation have brought this economic stress upon ourselves by not saving enough, by choosing to use our homes as barter for taking on more debt, and by being more interested in individual excesses, but the reality is that the middle class does not see free trade as fair trade any longer. Politicians will have to learn to speak about trade in a more convincing manner. But if people continue to see climbing credit card interest rates, higher student loan rates, and rising prescription costs, I doubt middle class voters will be willing to listen to any debate on free trade.