Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

America's Tired Protectionism
IBD Editorials ^ | September 14, 2009

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.


Sec. 421 of the 1974 Trade Act, intended to control surges in imports.

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 ...


TOPICS: Business/Economy; Editorial
KEYWORDS: bhochina; bhotrade; bhounions; cho44; manufacturing; protectionism; tires; tradewar

1 posted on 09/14/2009 5:35:43 PM PDT by Kaslin
[ Post Reply | Private Reply | View Replies]

To: Kaslin

I think there is BUT one American tire manufacturer left.


2 posted on 09/14/2009 5:39:53 PM PDT by Cheetahcat (Zero the Wright kind of Racist! We are in a state of War with Democrats)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

Anyone for a replay of Smoot - Hawley?


3 posted on 09/14/2009 5:40:22 PM PDT by Mr. Jazzy ("I AM JIM THOMPSON!!!")
[ Post Reply | Private Reply | To 1 | View Replies]

To: bareford101; BerniesFriend; blaveda; Bookwoman; Celeste732; dsc; Faux_Pas; FrdmLvr; ...

4 posted on 09/14/2009 5:41:11 PM PDT by Kaslin (Acronym for 0bama: One Big Ass Mistake America)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mr. Jazzy

Who or what is Smoot-Hawley?


5 posted on 09/14/2009 5:43:13 PM PDT by Kaslin (Acronym for 0bama: One Big Ass Mistake America)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Kaslin

So are we trying to do exactly what we did during the Great Depression?


6 posted on 09/14/2009 5:43:25 PM PDT by djsherin (Government is essentially the negation of liberty.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Cheetahcat

That would not surprise me


7 posted on 09/14/2009 5:44:31 PM PDT by Kaslin (Acronym for 0bama: One Big Ass Mistake America)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Kaslin

A protectionist bill passed during the Hoover Administration that increased tariffs.


8 posted on 09/14/2009 5:47:18 PM PDT by djsherin (Government is essentially the negation of liberty.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Kaslin
Who or what is Smoot-Hawley?

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… Anyone? Anyone?… 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 gov’t. Did it work? Anyone? Anyone know the effects? It did not work, and the US sank deeper into the Great Depression.

9 posted on 09/14/2009 5:48:13 PM PDT by dfwgator
[ Post Reply | Private Reply | To 5 | View Replies]

To: Kaslin

Sounds to me like YOU need to brush up on your history!


10 posted on 09/14/2009 5:49:32 PM PDT by Mr. Jazzy ("I AM JIM THOMPSON!!!")
[ Post Reply | Private Reply | To 5 | View Replies]

To: dfwgator

Yes, I have watched the movie, but it’s been so long ago. I have forgotten about it. Thanks for answering me


11 posted on 09/14/2009 5:54:34 PM PDT by Kaslin (Acronym for 0bama: One Big Ass Mistake America)
[ Post Reply | Private Reply | To 9 | View Replies]

To: djsherin

Thanks


12 posted on 09/14/2009 5:55:32 PM PDT by Kaslin (Acronym for 0bama: One Big Ass Mistake America)
[ Post Reply | Private Reply | To 8 | View Replies]

To: djsherin

I hope not. But then the left always likes to repeat mistakes that were made


13 posted on 09/14/2009 5:57:13 PM PDT by Kaslin (Acronym for 0bama: One Big Ass Mistake America)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Kaslin

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.


14 posted on 09/14/2009 6:06:25 PM PDT by djsherin (Government is essentially the negation of liberty.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Kaslin
“That would not surprise me”

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.

15 posted on 09/14/2009 6:20:48 PM PDT by Cheetahcat (Zero the Wright kind of Racist! We are in a state of War with Democrats)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Kaslin

I’m surprised the protectionists haven’t chimed in yet. They like to call free market fellows like myself “Traders”.


16 posted on 09/14/2009 6:31:25 PM PDT by Nateman (If liberals aren't screaming you're doing it wrong.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: djsherin
Lack of money doesn't mean more people raise and sell produce, because few have the skills or the land. Of course, far fewer people have the skills to create a food glut as Depression Era farmers did, so that risk is greatly reduced. This government wants us to plant gardens and trees. ObamaCare Jokes Obama Jokes
17 posted on 09/14/2009 7:26:08 PM PDT by tbw2 (Freeper sci-fi - "Humanity's Edge" - on amazon.com)
[ Post Reply | Private Reply | To 14 | View Replies]

To: Kaslin

Tire tariffs, steel tariffs... What’s the difference.

Meet the new boss, same as the old boss.


18 posted on 09/14/2009 11:43:42 PM PDT by Tempest (I believe in the sanctity of life... As long as you can afford it.)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson