Skip to comments.America's Tired Protectionism
Posted on 09/14/2009 5:35:42 PM PDT by Kaslin
Trade: President Obama has fired the opening salvo in a trade war with China by slapping 35% tariffs on its tires. But besides giving China a kick, this protectionism will harm Americans across the economy.
But the markets paid attention. Global stock futures tumbled over the weekend. Asian markets dropped sharply Monday, fearing a wave of U.S. protectionism.
China called the U.S. move "rampant protectionism" and vowed to investigate dumping charges against U.S. auto parts and chicken, two industries that have made inroads into the China market. The Asian giant also vowed to challenge the U.S. at the World Trade Organization.
Why should we care? This protectionist move, meant to please a single labor union, takes a big bite out of our global trade credibility, making us look like a country that can't compete in global markets.
Earlier this year, Obama seemed to agree when the leaders of the Group of 20 declared they wouldn't worsen the global financial crisis by enacting protectionist measures.
But by mid-year, that strong free-trade declaration was already fraying badly from indirect protectionism in Europe, along with the U.S.' "Buy-American" provisions in the $787 billion stimulus package. Even so, the tire tariffs this week mark a new low.
"Economically, the idea is ominous," said Thomas Pruse, an economist at Rutgers University and an expert on trade protectionism. "Not a single tire company thinks it will change the dynamics of the tire industry." And none supported the tariffs.
(Excerpt) Read more at ibdeditorials.com ...
I think there is BUT one American tire manufacturer left.
Anyone for a replay of Smoot - Hawley?
Who or what is Smoot-Hawley?
So are we trying to do exactly what we did during the Great Depression?
That would not surprise me
A protectionist bill passed during the Hoover Administration that increased tariffs.
You obviously never saw Ferris Bueller's Day Off:
In 1930, the Republican controlled House of Rep, in an effort to alleviate the effects of the
the Great Depression, passed the
Anyone? Anyone? The tariff bill? The Hawley-Smoot Tariff Act which, anyone? anyone? Raised or lowered?
Raised tariffs, in an effort to collect more revenue for the federal govt. Did it work? Anyone? Anyone know the effects? It did not work, and the US sank deeper into the Great Depression.
Sounds to me like YOU need to brush up on your history!
Yes, I have watched the movie, but it’s been so long ago. I have forgotten about it. Thanks for answering me
I hope not. But then the left always likes to repeat mistakes that were made
The government hasn’t created a bunch of cartels to impose minimum prices like they did during the depression. The idea was that competition was too “ruinous” and that falling prices were the sign of an unhealthy economy. Unless of course a free market monopoly was emerging then of course anti-trust had to be applied to “protect” the consumer and ensure competition.
We also don’t have a top marginal tax rate of above 50%. FDR was in favor of 100% at one point, but was dissuaded by advisers. And so far we haven’t slaughtered 6 million pigs or burned 10 million acres of cotton.
On the other hand we spent nearly a trillion on “stimulus”, the Fed has been ramping up the proverbial printing press like nothing seen before, and we’re on the road to nationalization. Good times.
Yes Clinton and Bush W among other things presided over the great American Rummage sale which is continuing and will snowball under the Kenyan version of the Jerk we have a lot of money out.
I’m surprised the protectionists haven’t chimed in yet. They like to call free market fellows like myself “Traders”.
Tire tariffs, steel tariffs... What’s the difference.
Meet the new boss, same as the old boss.
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