Archive for October 15th, 2008

Is the media finally catching on to the Bush administration’s campaign to weaken the rights of consumers to seek compensation for injuries from faulty products? Maybe. A few outlets picked up on Alicia Mundy’s Wall Street Journal piece about the administration’s attempts to do an end around Congress and the Courts in its effort to undermine consumer protections in state courts.

Bush administration officials, in their last weeks in office, are pushing to rewrite a wide array of federal rules with changes or additions that could block product-safety lawsuits by consumers and states.

The administration has written language aimed at pre-empting product-liability litigation into 50 rules governing everything from motorcycle brakes to pain medicine. The latest changes cap a multiyear effort that could be one of the administration’s lasting legacies, depending in part on how the underlying principle of pre-emption fares in a case the Supreme Court will hear next month.

Coincidently, the National Highway Traffic Safety Administration issued a new regulation today that seeks to immunize school bus manufacturers who comply with federal standards from liability for personal injury caused by faulty products.

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Cross-posted at Eyes on Trade

By Todd Tucker

Today is Blog Action Day on Poverty, and it seems like a good opportunity to remember the impact that our failed trade policies have had on the world’s poor.

  • The worldwide gulf between rich and poor has widened under current trade policies. In the early 1990s, proponents of the WTO and NAFTA touted these pacts as keys to poverty reduction in developing nations and a more equitable global economic system. That same argument is being raised again today to promote the Doha Round WTO expansion.
  • Long-standing economic theory predicts that trade increases inequality in developed countries, but not in developing countries. However, during the era when the corporate globalization policies were implemented worldwide, income inequality between developed and developing nations, and between rich and poor within developing nations has increased. Research by 2007 Nobel Laureate Eric Maskin recently confirmed this trend. In 1960, the 20 richest nations earned per capita incomes 16 times greater than non-oil-producing, less-developed nations. And by 1999, this gap had more than doubled. The richest 1 percent of the world’s population is 2,000 times richer than the poorest 50 percent.
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