March 30, 2005
Who is Lou Dobbs?

Lou Dobbs hosts Moneyline each night on CNN. He may be the most dangerous man on TV. Single handedly he is trying to undo the work of all mainstream economists since Adam Smith. He is a mercantilist who launches a nightly tirade against free trade, multinational firms and outsourcing.

His biography at CNN lists numerous awards and prominent positions in financial news operations. It also indicates he has an economics degree from Harvard. Something just don’t seem right here. Is it possible that this protectionist Neanderthal is really a product of Harvard? If so, Larry Summers is doing God’s work.

An interesting article examining Lou Dobbs can be found at the Columbia Journalism Review.

Posted by Ralph R. Frasca at 09:17 PM in Economics  ·  TrackBack (2)

Comments

Regarding Lou Dobbs,

I think you've got a point about Lou Dobbs. Something's is different about him. He tells the TRUTH, instead of creating some idiotic theory, like "comparative advantage," to justify the use of cheap slave labor from foreign countries. Dobbs believes in economic patriotism, unlike Bush's policies of economic treason. Dobbs' truth dissemination scares the daylights out of you, and the other corporate criminals that support the Bush plutocracy. Bush is an economic terrorist. We now have a Bush-Mankiw-Snow-Greenspan Economic Axis-of-Evil. They are far more dangerous than any other "terrorists." We should be afraid. Be very, very afraid.

Outsourcing is done exclusively so American corporations can use cheap foreign labor. The underlying motivation behind ALL free trade agreements is to enable American corporations to use the unskilled, impoverished, semi-slave labor of other countries. There has never been any real concern about "opening up markets." That is more than just a mistaken concept. It is an outright lie from Bush and the economists that espouse "opening up markets." The minuscule income of these 3rd world countries makes it impossible for them to buy American products. Bush knows this. Mankiw knows this. Snow knows this. The man on the moon knows this. Markets are created by aggregate consumer income, not people. Countries with little aggregate consumer income have minuscule-sized markets. Exporting countries that pay their 11-year old slave laborers $2/day will never, ever buy our products. China and Indian industries would collapse if they had to depend on their own populations to buy the goods and services they produce. They don't pay their workers enough to survive on their own domestic sales. They depend on the American consumer market, which is created by American wages (and borrowing).

When American industry outsources jobs, it outsources consumer income as well. This is the very income that purchases their products. If enough industries do this, no one will be able to buy their products. There won't be enough American consumer income.

The price reduction on foreign-produced goods does not make up for the income lost. It is simply illogical to think so. If it did compensate, there would be no benefit to outsourcing. American workers are the most highly educated, highly skilled, productive workers on the planet. The produce more goods per hour than any of the workers they are losing their jobs to. But they are not as productive measured in goods per dollar. American workers lack the "skills" to survive on $2/day. We need to begin retraining them to acquire this skill. Our educational system has completely failed us here. And the ability to survive on $2/day is THE most essential job skill in today's market. We need to markedly increase federal funding to teach this skill.

The solution to outsourcing is not increased worker training. It is not increased funding to job-displacement programs. It is not extension of unemployment benefits. The solution is to stop outsourcing. Period. Repeal ALL "free" trade agreements. We already had free trade before any of these agreements were ever created. NAFTA, FTAA, CAFTA and the others have only one real goal -- to reduce the labor costs by using the slave labor of impoverished countries. This makes American workers compete with the exploited labor of poor countries. American workers then become no more than slaves themselves. Is this the job retraining Bush has in mind?

Economists speak of "comparative advantage" with outsourcing. This outdated concept is nothing but economic fantasy. It's what Right-Wing, "alternate reality" economists hide behind when defending outsourcing. They should lose their economic degrees for even mentioning this in public. It's a long, twisted, completely non-applicable concoction, which is designed to disguise the real reasons for outsourcing. Mankiw and Snow know better. Bush may be too stupid to be held completely accountable for his policies. But Mankiw and Snow are nothing but taxpayer-paid liars. The Bush/Mankiw/Snow/Greenspan "economic axis-of-evil" may destroy our economy. They are economic traitors.

The public needs to be made aware of these lies. It's difficult to compete with the well-funded Neocon propaganda machine. It's not impossible, however. I hope I can reach some people. Only time will tell.

Posted by: Mike at April 3, 2005 11:54 PM

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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