Now the Trans-Pacific Partnership (TPP) is a done deal for all intents and purposes, it bears looking at again. The argument for it is that it is going to be great for the economy. That’s what President Obama keeps saying anyway. Of course, it’s bunk. Dean Baker made a good comparison recently, Donald Trump Says His Tax Cut Will Lead to 6% GDP Growth and President Obama Says TPP Will Boost Growth. That’s right: he’s saying that Trump’s widely mocked claim that his policies will lead to 6% growth are as ridiculous as Obama’s claims about the TPP.
It turns out that even people who are in favor of TPP don’t make much in terms of claims for it. The Peterson Institute claims that it will increase economic growth by 0.03% per year. This is literally at the level of noise. And in fact, that’s what others say. The United States Department of Agriculture said that the effect would be “too small to measure.” So we are getting a treaty that will weaken local laws, harm workers all over the world, and increase the prices of patented and copyrighted goods. But on the plus side… Well, there is no plus side.
For a while, a lot of people like me thought that maybe the crazy Republicans would step up and make this an issue. After all, isn’t this treaty exactly what they are always claiming liberals are trying to do: create a one world government that will tell the good God fearing people of Texas or Arkansas or Mississippi what to do? But they aren’t concerned about this treaty because they know that the down side will only affect the poor people and the up side will help the rich people. Thus it is everything that Republicans want in a law or treaty: something to screw the poor and help the rich.
But you might wonder: if the TPP is going to produce basically no economic growth, why do the rich care? Well, it is the same reason that drilling for oil in the Arctic National Wildlife Refuge has been such a big deal for such a long time. There is not enough oil there to make any difference to us on a national level, much less a world level. But it did mean billions of dollars for people who were already hugely wealthy. So it is a big deal to do. And it is the same thing here. This treaty is huge for the pharmaceutical industry. It is huge for Hollywood. But are we going to get better drugs or movies? Don’t be silly. This is about them being able to collect more rents on things they’ve already made.
So it is sad that Obama has pushed this through. In the end, I suspect people will remember him for Obamacare. But they will mention TPP in the same way that people mention NAFTA and Bill Clinton. “Oh yeah, well that was a mistake.” Not that Obama will ever suffer because of it. After he’s out of office, I’m sure that Pfizer and Roche will be eager to give him a million bucks to drop by and give a speech on something like volunteerism.