In an attempt to explain his position regarding trade, Democratic presidential front-runner Barack Obama said that he did not oppose free trade, despite making increasingly critical comments about multilateral deals such as NAFTA.

Asked how other countries should interpret his position, Obama responded that he supported free trade but wanted it to be fair.

"What the world should interpret is my consistent position, which is I believe in trade," he said after meeting with workers at a manufacturing plant in Ohio.

"I just want to make sure that the rules of the road apply to everybody and they are fair and that they reflect the interests of workers and not just corporate profits."

Well why, Senator Obama, do companies want to engage in trade? The answer is because both sides feel that they can gain from the deal. Corporations engage in trade to profit. Period. Entrepreneurs start companies because they think they can make a buck. On the other side, poorer countries want to trade to help create wealth.

I was speechless when I saw this story in The Wall Street Journal (subscription required):

By a nearly two-to-one margin, Republican voters believe free trade is bad for the U.S. economy, a shift in opinion that mirrors Democratic views and suggests trade deals could face high hurdles under a new president.

What is interesting is that economists are, with few exceptions, unanimous in their belief that free trade is, in aggregate, a good thing. One of the overriding principles of economics is that "voluntary trade creates wealth".

While there's some obvious headline shock that can partly explain this shift, I have to wonder: Is part of the problem that most Americans are just poorly-versed in economics, and lack the tools to form rational opinions about issues like free trade?

Having discussed issues like this with a number of college students, I suspect that is the case. One organization is looking to change that. The Foundation for Teaching Economics holds training programs for students and teachers, and provides resources for schools looking to offer instruction in economics.

If you're a parent or teacher, bring up the meeting with your local high school (or junior high school's administration). The lack of financial literacy could lead to some seriously bad policy decisions brought about by ignorance.

Monday February 12

• Broadcom Corporation (NASDAQ: BRCM) to hold a 10:30am press conference from Barcelona on 3GSM.
• US and South Korea to hold Free-Trade Agreement talks from 2/11 to 2/14.

Tuesday February 13

• Extreme entertainment earnings:
• World Wrestling Entertainment (NYSE: WWE), conference call at 11am.
• Playboy Enterprises (NYSE: PLA), conference call at 11am. Note that Playboy was recently downgraded by RBC Capital Markets and Sanders Morris Harris. Sanders Morris said the company will either issue guidance below consensus expectations or none at all on the call.
• PDUFA date for Pfizer, Inc's (NYSE: PFE) Fesoterodine, a new drug candidate for the treatment of an overactive bladder.

Wednesday February 14

• Garmin Limited (NASDAQ: GRMN) to report Q4 earnings, conference call at 11am.
• MGM Mirage (NYSE: MGM) to report Q4 earnings, conference call at 11am.
• PDUFA date for Acambis plc's (OTC: ACAMY) ACAM-2000, a smallpox vaccine derived from Dryvax, a first-generation vaccine used during the global eradication program.
• PDUFA date for MedImmune Inc's (NASDAQ: MEDI) CAIV-T, an investigational intranasal, cold-adapted trivalent influenza vaccine.

Thursday February 15

• Biogen Idec Inc (NASDAQ: BIIB) to report Q4 earnings, conference call at 8:30am. On February 2, JP Morgan recommended buying Biogen before its quarterly report, saying the Tysbari uptake should be better than current expectations.

Friday February 16

• Jack in the Box Inc (NYSE: JBX) to hold annual shareholder meeting at 3pm.