Will Democrats Embrace Protectionism?

The health of democracy relates to the health of the economy. And for the economy to be healthy, government should nurture and protect its free market system. The opposing viewpoint begins with the breakdown of U.S. capitalism in 1929-33, and the role FDR’s New Deal played in saving democracy. When capitalism failed, New Deal heroes used government power to put industry and agriculture back on their feet, create jobs, and build a working welfare state.

America remains divided today over the question of who creates wealth and jobs—business or government? Those who say “government” believe the state should control markets. They point to the losers in free-market competition, such as American automobile companies, to justify state control.

George Will’s column today looks at the 2006 battle for governor in Michigan, America's auto state, as forecasting what lies ahead for our nation. Will says GOP gubernatorial candidate DeVos is under attack because:

[as] the chairman of the Michigan Democratic Party says, “[DeVos] supports free trade which has devastated the Michigan economy." So this race will preview what might be the highest stake in the 2008 presidential race -- repudiation of the basis of America's post-1945 prosperity. That basis was a bipartisan consensus in favor of free trade. That consensus has frayed, and by 2008 the Democratic Party probably will fully and formally embrace protectionism.

“Embracing protectionism” is as much a prescription for economic disaster today as it was in 1929-33.