Democrats Should Embrace an Open Economy
President Trumps decision to announce tariffs on steel and aluminum is his latest effort to close America off from the world in a counterproductive movement to turn back the global economy 40 years. The decision serves as a moment for Democrats to stand up for an open America that confidently competes globally.
The immediate impact of Mr. Trumps policy will be price increases for the middle class and loss of automotive-related jobs, which Democrats should campaign against in 2018. But for the longer term, these tariffs also represent a pessimistic and backward-looking view of the world that Democrats must reject. The future of the American economy is jobs in high-skill fields like cybersecurity, advanced manufacturing and energy technology, not in trying to reopen mills that closed down in the 1980s. Our policy must evolve to position America for technological changes and globalization, instead of pretending those trends will not continue.
The political opportunity for Democrats is even stronger because congressional Republicans under Mr. Trump have given up on defending an American economy that competes globally. The relatively sheepish response from supposed free-trade advocates in the congressional Republican leadership shows they are more fearful of offending Mr. Trump than they are concerned with preventing price increases that working families in Kentucky and Wisconsin will face on everything from beer to baby strollers.
For Democrats, the message is simple: After congressional Republicans passed a tax cut to benefit Wall Street and their wealthiest donors, they are now allowing significant price increases that will affect middle-class families, seniors and small businesses.
The geopolitical implications of Mr. Trumps trade decisions should also alarm Democrats. His decision to withdraw from the Trans-Pacific Partnership (which President Barack Obama negotiated) weakened Americas economic standing in the world and was a gift to China. If the United States is not involved in setting the rules for international trade, China and Russia will now drive these decisions. Our strong allies will be pushed into trade deals dictated by China. The alternative to TPPs negotiated labor and environmental standards will be Chinas lack of standards on labor and the environment. The same applies to technology, where either the United States will set rules with a focus on innovation or China will set rules with a focus on government control of information.
When Democrats focus on building a modern economy that competes globally, as we did particularly in 1992 and 2012, we appeal to the majority of voters who believe that trade benefits America. When we do not lean in on a positive case for competitive jobs of the future or are perceived as indecisive on Americas role in the global economy, as we were in 2004 and 2016, it can come across as hypocritical to the recent history of our party and limits our ability to win over swing voters.
Electorally, Democrats can win over small-business owners and moderate Republicans with a platform of investing in education and research to build an American economy that competes with the rest of the world. We proved this in Virginia, where the state has gone from being solidly Republican just 10 years ago to having a Democratic winning streak in statewide contests. That shift occurred both because Republicans focused on an extreme anti-woman, anti-gay, anti-immigrant agenda and because Democrats made the case directly to moderate Republicans and business owners that we were the only party focused on building a modern, vibrant Virginia economy.
In my 2013 campaign for governor, I won endorsements from many moderate Republicans because I campaigned on a welcoming Virginia economy, while my opponent was known for crusading on social issues that scared global companies away from Virginia.
As governor, I worked across party lines to help build a new Virginia economy that traded with the world. That work included 35 trade missions to five continents, which brought substantial foreign investment to Virginia and helped create over 200,000 jobs. The states economy was driven in part by exports, and agriculture and forestry increased 31 percent, to $91 billion. That growth in trade meant more jobs, with Virginias unemployment rate falling to 3.7 percent from 5.4 percent during my term.
There are some leaders in my party who believe as President Trump does that populist appeals against trade will benefit them politically, even if they actually believe in the benefits of trade. Putting aside the cynicism of this position, Democrats will never defeat Mr. Trump by attempting to sound more protectionist and isolationist than he is.
Instead, Democrats will win with an optimistic vision of an America that is confidently able to compete around the world because of new investments in education for our workers, research in cutting-edge industries and modernized infrastructure. It is a pro-jobs message that we should enthusiastically embrace.
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Democrats Should Embrace an Open Economy
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