trade agreement implemented by Congressrnrequires higher domestic taxes tornstay within the budget plan.rnThe new mobility of capital has nullifiedrnthe argument that “protectionism”rnreduces competition. Companies canrnset up factories nearly anywhere.rnBuchanan’s program would not discriminaternbetween competing firms: “Toyotasrnmade here would compete withrnFords made here, and Toyotas made inrnMexico would compete with Fordsrnmade in Mexico.” Buchanan is in accordrnwith Daniel Webster who said, “Irnam looking not for a law such as will benefitrncapitalists —they can take care ofrnthemselves—but for a law that shall inducerncapitalists to invest their capital inrnsuch a manner as to occupy and employrnAmerican labor.”rnForeign firms which develop a betterrnproduct or process can still gain a competitivernedge —thereby goading theirrnAmerican rivals to greater efforts of theirrnown. Persuading foreign firms to locaternin the United States will actually speedrnthe dissemination of new technologyrnfaster than importing goods will—an insightrnother nations incorporated in theirrntrade policies years ago. By contrast,rncompetition based on cheap foreign laborrnmay retard technological progress byrndiscouraging necessary investment in researchrnand development.rnJohn O’Sullivan, former editor of NationalrnReview, has branded “post-nationalism”rnas “a religion of the New Classrnelites.” According to this creed, multiculturalism,rntransnational institutions,rnand the global economy have made nationsrnand patriotism obsolete. “Republicansrnare tempted toward post-nationalism,”rnwarns O’Sullivan, “because theyrnfeel dimly that it is implied by the logic ofrnfree trade.” O’Sullivan would like tornbreak this tie, but “free trade,” embodyingrnevery flaw in the liberal doctrine, hasrnbeen a central tenet of liberalism fromrnthe time of Voltaire and Kant to that ofrnWilson and Clinton. Buchanan addressesrneach of these flaws in turn and exposesrnthem. His book is necessary reading forrnall those who want to conserve ourrnsovereign United States.