1,028 Economists and 105 CEOs
In August, the Club released a petition signed by 1,028 economists urging Congress not to pass any protectionist legislation against China. Now comes word that 105 CEOs from some of the largest companies in the country are doing the same thing. Signers include Steve Ballmer of Microsoft, Jeffrey Immelt of GE, and Lee Scott of Wal-Mart. Here's their letter (PDF file):
Dear Speaker Pelosi and Leaders Reid, Boehner, and McConnell:
As Chief Executives of some of our country's largest companies, we know you share our view that American leadership in the global economy has produced enormous benefits for our country in terms of job creation and economic growth. It is essential to sustain this record of success in the years ahead. However, we wish to express serious concerns about legislation under consideration in Congress that we believe will jeopardize this progress.
Of particular concern are the legislative proposals targeting the U.S.-China trading relationship. We recognize that China's rise as a major international economic player has presented important challenges that the United States and other nations must continue to address. From currency valuation, product safety, and intellectual property protection to other key matters, we share the view that more action needs to be taken. Where we differ is how to achieve the results we all want.
We, for example, are opposed to bills and amendments that establish unilateral trade penalties that will likely be found to violate our international obligations and invite reciprocal actions. We believe a more effective and prudent course of action is to continue to engage directly with the Chinese Government on issues of mutual concern.
America can prosper in the global economy if we are strategic about the policies and objectives we as a nationa pursue. We urge you as leaders of Congress, not to take action that could undermine U.S. competitiveness and jeopardize national interests and goals, particularly with respect to a nation as important as China.
I had trouble digging up the financial statements for all of the companies represented by these CEOs, but here are some conservative numbers. Combined, these companies have:
A market cap of at least $3 trillion
Revenue of at least $2 trillion
At least 6.9 million employees
You can't shake a stick at those kinds of numbers. Also, note that the letter mentioned intellectual property concerns. One of the companies most affect by IP abuse is Microsoft. Yet Steve Ballmer still signed the letter. That shows you just how destructive protectionist policies would be if enacted into law.
Let's keep putting this into perspective. Over a thousand economists from every state in the Union along with over 100 CEOs representing a large swath of commerce in this country is pleading with Congress not to pass protectionist policies. That's one heckuva lobby if I ever saw one.
