Scott Bruun: Passing Marks for Political Courage in Support of Free Trade

Wednesday, May 13, 2015

Scott Bruun, GoLocalPDX MINDSETTER™

Every elected leader will at some point have to deal with fringe or radical elements within their own party or political support network. Elected leaders will have to choose how to deal with influential supporters and usual-allies who are flat-out wrong on a given issue. For Oregon’s congressional Democrats, that issue is international trade.

The current buzz, and buzz-saw for some Democrats, is the Trans-Pacific Partnership (or “TPP”). As I wrote several months ago, the TPP is a trade and investment deal currently being negotiated by 12 Pacific Rim nations. Discussions for the treaty began under the George W. Bush Administration and have now included some twenty rounds of negotiations.

If authorized by congress, the TPP would link the U.S. with other nations generating more than $28 trillion in combined annual economic output. The TPP is important for America and vitally important for Oregon. Important enough, in fact, to generate a Portland visit last week by President Obama.

As most business, government and labor leaders in Oregon know, free trade is a critical factor in the growth and success of our local economy. Trade is a job-creator for Oregon. Yet despite the many benefits of free trade and agreements like the TPP, there remains a large and vocal faction opposed.

This faction, comprised of small segments within certain labor and environmental groups, sees international trade as a zero-sum game. They seem to believe that if some people, some region, or some country is prospering, then it must be coming at the expense of some other people, region or country. By this logic, if a TPP were to help manufacturers in Taiwan or Australia, then it must hurt manufacturers everywhere else – including America.

In a growing world economy, this anti-trade ideology is demonstrably false. Nevertheless, the anti-trade ideologues who preach it are powerful. They are a loud, aggressive and influential block within the Democrat Party. The tone and tenor of their protests, including picketing of private homes like Senator Ron Wyden’s, can be outright thuggish. It’s certainly meant to intimidate.

That’s why credit must be given where credit is due.

Most of Oregon’s congressional Democrats (with the notable exception of Jeff Merkley) deserve praise for their embrace of trade and the TPP. They deserve our congratulations for standing athwart pressures brought by Oregon’s anti-trade cabal. Congresswoman Suzanne Bonamici, congressmen Earl Blumenauer and Kurt Schrader, and Senator Wyden all deserve credit for their political courage on the issue of international trade.

Courageous, and correct. After all, any understanding of Oregon and its economy whatsoever should lead to support for free trade.

Oregon is almost perfectly situated to benefit from the TPP. As noted before in these pages, we have major port capacity in Portland, Astoria and Coos Bay. We have road and rail access across our state, making Oregon a logical distribution hub for American exports. And PDX has more than just a photogenic carpet going for it. Our airport, critical for international commerce, is considered one of the world’s best.

A half-million Oregon jobs are already tied directly or indirectly to international trade. A TPP may double the amount of trade jobs in Oregon, while also providing support for our tech, manufacturing, agricultural, fisheries and forest product industries. Nike alone suggests that the TPP may lead to tens-of-thousands of new jobs in Oregon.

Which brings us back to Oregon’s congressional Democrats.

It may be too much to compare their support for trade to the stories John F. Kennedy described in “Profiles in Courage.” Kennedy made the point that the highest level of political courage requires standing up to wrong opinion, especially when that wrong opinion is held by the majority. Those opposed to trade are not the majority, just a loud minority. As such, Oregon’s Democrats may not quite rise to the level of Kennedy’s “profiles.” Nevertheless, on the issue of trade, they’ve at least earned “passing marks” for courage.

This is no small thing. By supporting trade, Reps Bonamici, Blumenauer, Schrader and Senator Wyden are helping Oregon. And yes, they are facing a little political heat for it.

Compare that to their compatriot, Senator Jeff Merkley. Despite the clear benefits for Oregon, he opposes free trade and the TPP. Yet for his opposition to trade, Merkley faces no political heat and no political consequence. Facts that once again demonstrate just how politically inconsequential our junior senator has become.

Scott Bruun is a fifth-generation Oregonian and recovering politician. He lives with his family in the 'burbs', yet dutifully commutes to Portland every day where he earns his living in public affairs with Hubbell Communications.

Related Slideshow: Oregon Leaders React to PERS Ruling

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Oregon School Boards Association

"Clearly the court’s decision is going to have enormous impacts on school budgets from 2017 and beyond, unless the Legislature addresses the situation," said OSBA communications specialist Alex Pulaski. "We have all seen the Legislative Fiscal Office’s estimates that school districts will face an additional PERS bill of about $358 million total in 2017-19. If districts have to cut their budgets as a result, as they have done repeatedly over the last 10 years, that would likely lead to teacher layoffs, larger class sizes and lost teaching days.

After talking with our legislative team, it appears we are not in a position to predict what path legislators might take to resolve the situation. First, we all need more time for PERS to determine precisely how much rates will go up and whether any other changes will be taking place as a result of the decision. Although we expect to be working with legislators on a solution to mitigate the effects of this ruling, it’s unclear at this point what forms that might take."

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House Republicans

"It’s clear that we need to focus on growing and strengthening our economy to cover the costs of these ballooning pension liabilities since the Supreme Court reversed much of the work the Legislature undertook to address this fiscal crisis facing Oregon. Local governments and school districts across the state again face massive uncertainty and risk as they struggle to adequately fund schools and critical public safety services, said House Republicans communications director Kara Walker.

"Given the Supreme Court decision’s implications for any future attempts at PERS reforms, the Legislature must take steps to foster growth in Oregon’s private sector and also enact legislation that protects and promotes Oregon employers. Creating permanent, family-wage jobs and increasing incomes and wages across the state will help to stabilize local governments and also work to address the PERS costs that we and future generations now face because of decisions made in the past."

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Representative Tobias Read, (D-Beaverton)

“This bill would help earn money to fill the gap by cutting Wall Street fees instead of cutting public services. It upgrades and modernizes our investment programs and practices while improving oversight.”

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Senator Tim Knopp (R-District 27)

“As far as what the Supreme Court ruled in regards to the Public Employee Retirement System I believe that we have to focus on three things: Redirecting the 6% IAP member contribution, setting the amortization rates for money match at a level that will reflect the private sector rates, and placing new employees in contribution plans similar to those in the private sector.”

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Governor Kate Brown

“I will be reviewing the ruling and assessing next steps, including the short and long term fiscal needs of PERS, and I will be working with the PERS Board to determine what next steps they will take.”

Melissa Navas, Press Secretary for Governor Brown:

"The opinion leaves a lot of questions about implementation. Governor Brown has asked PERS and DOJ to analyze the opinion and provide advice for implementing it."

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Senator Chris Edwards (D-District 7)

"I'm not aware of any immediate solution to the PERS issue. Oregonians have a choice to either continue underfunding public services, or to get real about revising the tax system. It's not going to be easy. This was devastating to Oregon's budget."