Enterprise Update: Trade and Prosperity in the 50 States: The Case of North Carolina

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Enterprise Update Eliminating barriers to enterprise and innovation The ECB's Buying Trouble Why Unions Want Higher Taxes DeMarco Warns of the Dangers of Large-Scale Forgiving of Mortgage Debt Obama Administration Discontinues Transparency Tool Tales of the Red Tape #30: Tales of the Red Tape #30: FTC Sticks It to Appliance Makers Trade and Prosperity in the 50 States: The Case of North Carolina By Bryan Riley Abstract: North Carolina has a long record of support for open markets, and recent trade agreements have benefited its citizens. Foreign trade—exports and imports—is responsible for more jobs in the state than the textile, apparel, and furniture industries combined. Despite these facts, North Carolina’s congressional delegation seems to be rejecting its free-trade heritage. (In 2011, all but one member of the state’s congressional delegation voted against the U.S.–South Korea Free Trade Agreement.) Primarily, this is due to the influence of the state’s large textile and apparel industry seeking protection from lower-cost imports. Every Member of Congress who is facing a vote on trade-related legislation should consider the impact of that legislation on every worker and family in his state, not just on a limited sector. Everyone benefits from less-expensive goods and more jobs. North Carolina can best represent the interests of its citizens by rejecting protectionist policies and returning to its free-trade roots. Economist Walter Williams once described the primary challenge facing free-traders: It is unreasonable to expect even principled politicians to vote for good economic policies if those votes amount to political suicide.[1] Opponents of increased trade have often successfully convinced politicians that votes for free trade are career killers. But even in states where opposition to free trade has been the strongest, the benefits of trade more than compensate for the costs. One such case is North Carolina. >> Read More For more information, visit Heritage's Enterprise and Free Markets webpage, which features research, commentary, blog posts, charts and additional policy resources. Red Tape Rising: Obama-Era Regulation at the Three-Year Mark The regulatory burden on Americans continued to increase throughout 2011, with 32 new major regulations that increase regulatory burdens imposed at a cost of almost $10 billion annually. This regulatory excess is evident in lackluster job creation and anemic economic growth. Click Here to Read the Full Report About The Heritage Foundation Founded in 1973, The Heritage Foundation is a research and educational institute -- a think tank -- whose mission is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense. The Heritage Foundation | 214 Massachusetts Ave NE, Washington, DC 20002 | 202.546.4400