The List: Obama’s 10 Worst Ideas

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Both John McCain and Barack Obama have many smart policy proposals, but not all of them are ready for prime time. This week, FP looks at 10 Obama ideas that should have never seen the light of day. Next week? McCain on the hot seat.

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Renegotiating the North American Free Trade Agreement

What he said: “I will make sure that we renegotiate. … I think we should use the hammer of a potential opt-out as leverage to ensure that we actually get labor and environmental standards that are enforced.” —Democratic primary debate in Cleveland, Feb. 26, 2008

Why it’s a bad idea: Trade agreements take years to negotiate, and Mexico and Canada would almost certainly seek new concessions of their own in a new round. Obama is right to argue that more economic development in Mexico will lower illegal immigration; he’s wrong to think that bashing NAFTA is the right way to address the Rust Belt’s economic woes. Happily, since the Ohio primary, Obama has backed off his harshest criticisms of the agreement.

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Opposing the U.S.-Colombia Free Trade Agreement

What he said: “And I’ll also oppose the Colombia Free Trade Agreement if President Bush insists on sending it to Congress because the violence against unions in Colombia would make a mockery of the very labor protections that we have insisted be included in these kinds of agreements.” —Speech to Philadelphia AFL-CIO, April 2, 2008

Why it’s a bad idea: Although Obama citied antilabor violence, the murder rate for union members in Colombia last year was 4 per 100,000, well below the rate for the general population. The deal carries little to no cost for the United States; economists actually predict modest increases in U.S. exports. The upshot for an important ally in the war on drugs, however, is high, and consolidating Colombia’s commitment to open trade with the United States is a worthy goal.

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Talking Openly About Bombing Pakistan

What he said: “If we have actionable intelligence about high-value terrorist targets and President Musharraf won’t act, we will.” —Speech at the Woodrow Wilson International Center, Washington, D.C., Aug. 1, 2007

Why it’s a bad idea: Engaging in military strikes in Pakistan happens to be established policy. But, as none other than Joe Biden pointed out last August, “It’s not something you talk about. … The last thing you want to do is telegraph to the folks in Pakistan that we are about to violate their sovereignty.”

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Sitting Down with Mahmoud Ahmadinejad

What he said: Asked if he’d be “willing to meet separately, without precondition, during the first year of your administration, in Washington or anywhere else, with the leaders of Iran, Syria, Venezuela, Cuba, and North Korea,” Obama replied: “I would.” —Democratic primary debate, Charleston, S.C., July 23, 2007

Why it’s a bad idea: Engaging rogue states can be a savvy move, and even the Bush administration has negotiated with Pyongyang and sent envoys to meetings with Iran. But sitting down with heads of state without precondition? That’s another thing entirely, especially when it comes to Iranian President Mahmoud Ahmadinejad. As Carnegie Endowment expert Karim Sadjadpour told the Wall Street Journal, “Only two things can rehabilitate Ahmadinejad politically: bombing Iran or major efforts to engage.” No wonder Obama’s foreign-policy team has walked back its candidate’s off-the-cuff remarks.

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Pushing the Patriot Employer Act

What he said: “When I am president … I’ll pass the Patriot Employer Act that I’ve been fighting for ever since I ran for the Senate—we will end the tax breaks for companies who ship our jobs overseas, and we will give those breaks to companies who create good jobs with decent wages right here in America.” —Speech in Janesville, Wis., Feb. 13, 2008

Why it’s a bad idea: British economists Willem Buiter and Anne Sibert slam the bill as, “reactionary, populist, xenophobic and just plain silly.” That’s a bit much. A little populist pandering is hardly a threat to the global economic order—the bill offers employers a small tax credit if they meet six conditions, including the probably unworkable provision that they keep their headquarters in the United States. It’s never smart economic policy to reward companies for placing limitations on their own profitable activities, but as The Economist put it, “Obama deserves a slap on the wrist” for this one, not a full-throated indictment.

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Promoting Coal-to-Liquid Fuels

What he said: “The people I meet in town hall meetings back home would rather fill their cars with fuel made from coal reserves in Southern Illinois than with fuel made from crude reserves in Saudi Arabia. We already have the technology to do this in a way that’s both clean and efficient. What we’ve been lacking is the political will.” —Statement introducing the Coal-to-Liquid Fuel Promotion Act of 2006, June 7, 2006

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Why it’s a bad idea: Obama’s energy policy has much to commend it. But borrowing an idea from World War II Germany and apartheid South Africa? Bad move. Coal-to-liquid fuels produce nearly twice the greenhouse gases of ordinary petroleum, experts say, and it’s foolish to subsidize an industry that easily could go under if oil prices fall. Under withering fire from environmentalists, the Obama camp clarified his position in June 2007 as, “[U]nless and until this technology is perfected, Senator Obama will not support the development of any coal-to-liquid fuels unless they emit at least 20% less life-cycle carbon than conventional fuels.” It’s since been dropped from campaign materials.

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Eliminating Income Taxes for Seniors Making Under $50,000

What he said: “I’ll make retirement more secure for America’s seniors by eliminating income taxes for any retiree making less than $50,000 per year.” —Speech on Nov. 7, 2007, in Bettendorf, Iowa

Why it’s a bad idea: Most seniors already pay no income taxes. That’s because they already get preferential treatment in the tax code. Plus, why are seniors more deserving of tax relief than struggling young families? The Tax Policy Center—run by the Brookings Institution and the Urban Institute—criticized the idea in a recent report, saying that because government spending on seniors is already set to balloon due to retiring baby boomers, “it seems inappropriate to target special income tax breaks to this group.”

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Boosting Ethanol Subsidies

What he said: “[Ethanol] ultimately helps our national security, because right now we’re sending billions of dollars to some of the most hostile nations on earth.” —Statement at the opening of a VeraSun Energy ethanol processing plant in Charles City, Iowa, August 2007

Why it’s a bad idea: As economist Paul Krugman has written, corn-based ethanol is “bad for the economy, bad for consumers, bad for the planet—what’s not to love?” World Bank economist Daniel Mitchell blames biofuels, including ethanol, for a 75 percent increase in global food prices since 2002 that has led to economic distress and rioting in such countries as Haiti, Egypt, and Somalia. There’s also little evidence that they do much to prevent global warming. A recent study published in Science demonstrated that the farmland needed to grow corn for ethanol results in deforestation on a massive scale, negating any benefit the reduction in carbon emissions might have. So why does the senator support such a wasteful and damaging subsidy, even voting for the recent farm bill’s billions in pork for ethanol producers? “[B]ecause Illinois … is a major corn producer,” he said in April. At least he’s honest.