I think Obama understands that this is terrible economic policy. I think he also understands how a politician must compete in Presidential primary season if he/she wants to win the nomination. He needs to move to the left on many issues, including trade, to take votes from Clinton's base (especially in Ohio, which coincidently is one of the next states to vote) and that is what he is doing. I don't think you can take any of these ideas at face value until at least the general election competition is underway. Just watch, as soon as he gets the nomination, he will start moving way back to the center to compete with McCain for independents, which is the group that will decide this election. There is no way he would ever attempt to actually implement this policy.
Don't blame Obama, he is just playing the game.
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