Newt Gingrich on Free Trade

Former Republican Representative (GA-6) and Speaker of the House

Protectionism helps China & India challenge US supremacy

In the US, there exists a coalition of union leaders who prefer protection over competition. This liberal coalition complains about companies' outsourcing jobs while insisting on corporate taxes that encourage companies to go overseas. They prefer that government impose on business obsolete, absurd work rules, even though these raise costs, lower productivity, and make America less competitive in the world market.

The challenge to American economic supremacy from 1.3 billion Chinese and more than 1.1 billion Indians is vastly greater than anything we have previously seen. India's embrace of capitalism and China's bizarre combination of Marxist-Leninist government and free market initiatives will create a future where one-fourth of the world's markets will be controlled by these countries. Those who advocate economic isolationism and protectionism are advocating a policy that could help China and India surpass the US in economic power in our children's or grandchildren's lifetime.

Source: Gingrich Communications website, www.newt.org Dec 1, 2006

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