Protectionism ‘Bad Politics’--Reagan : Public Won’t Buy What Democrats Are Selling, He Says

President Reagan said today that Democratic candidates who espouse trade restrictions and retaliation have a message the public will not buy and are out of touch with economic reality.

“Protectionism isn’t just bad economics--it’s bad politics,” Reagan said.

Reagan, in an address to workers at the Reynolds Metals Co., issued a back-handed slap at critics of his free-trade philosophies. Although Reagan did not name him, Rep. Richard Gephardt (D-Mo.) had made finding new solutions to the nation’s trade woes the centerpiece of his campaign.

“I think the American people have decided that one Great Depression is enough, and they aren’t going to give the trade demagogues a second chance,” Reagan said.

“I would note that on Super Tuesday, those who had predicted that protectionism would be embraced in the South were proven wrong,” Reagan said.

Gephardt did poorly in the March 8 delegate selection contests throughout the South and today ended his bid for the Democratic nomination.

The President attacked the international trade bill under consideration by a House-Senate conference committee. The House version contains a Gephardt proposal requiring presidential action against nations such as Japan running excess trade surpluses.

“I’ll veto it if I must,” Reagan warned.

Called ‘Seriously Harmful’

He derided the bill’s mandatory retaliation and automatic protection provisions as “seriously harmful to the national interest. If enacted, they could weaken the international trading system and could require the president to start trade wars.”

“It’s a bad proposal under any circumstance,” Reagan charged, contending that it is particularly harmful now that exports are increasing.

In remarks apparently directed at Democrats faulting his trade plans, Reagan said: “Too many talk about making America more competitive, but support provisions in the trade bill that would bench some of the best competitors on our team. They talk about saving jobs, but they want provisions that have the potential to destroy thousands if not millions of American jobs.”

Reagan accused his critics of being “myth-makers” who accuse his Administration of overseeing “the de-industrialization of America, the decline of the middle class and the loss of American jobs.”

The President contended that “the reality” is the growth of new jobs and five years of steadily rising real income.

Reagan highlighted his free-trade message today with the visit to Reynolds Metals, the world’s top producer of aluminum foil and foil packaging. The company also has experimented in new products, such as a resealable can that retains carbonation.