Posted on 01/29/2009 7:22:27 PM PST by Crazieman
I buy American every place I can.
The prospect of a trade war between the US and Europe is looming after "Buy American" provisions were added to President Barack Obama's $820 billion (£573 billion) stimulus package.
The Telegraph (UK)
By Alex Spillius in Washington
Last Updated: 12:27AM GMT 30 Jan 2009
President Barack Obama's $820 billion stimulus package was passed by the House of Representatives Photo: AP The EU trade commissioner vowed to fight back after the bill passed in the House of Representatives late on Wednesday included a ban on most purchases of foreign steel and iron used in infrastructure projects.
The Senate's version of the legislation, which will be debated early next week, goes even further, requiring that any projects related to the stimulus use only American-made equipment and goods.
The inclusion of protectionist measures has quickly raised hackles in Europe.
[snip]
There is no universal agreement about the effect of the tariff. According to the U.S. Statistical Abstract, the effective tariff rate was 13.5% in 1929 and 19.8% in 1933 with 63% of all imports being duty-free. From 1821 through 1900 the United States averaged 29.7% effective tariff rates and peaked in 1830 at 57.3% with only 8% of all imports being duty-free, dwarfing the Smoot-Hawley rate. In addition, imports in 1929 were only 4.2% of the United States’ GNP and exports were only 5.0%. Smoot-Hawley’s effect on the entire U.S. economy may have been small, compared to the monetary policy of the Federal Reserve System. By 1937 the effective tariff rate was reduced to 15.6% when the reaction of 1937-1938 occurred, demonstrating no statistical correlation between this economic downturn and tariff levels. Senator Robert L. Owen testified at the hearings on HR 7230, the bill to make the Federal Reserve banks a national property, that; “In 1937, when the Federal Reserve Board called upon the banks to raise their reserves to twice what they had been before, there was a contraction of credit of two billion dollars.[10]
You make a great point.
I think you're correct.
Warning Over Collapse In Capital Flows
The world economy will shrink this year for the first time since the Second World War, warns the gloomiest forecast yet delivered by a major international institutional.
The Telegraph (UK)
By Edmund Conway in Davos
Last Updated: 12:00PM GMT 28 Jan 2009
The Institute of International Finance, the global organisation of major banks, predicted an almost unprecedented collapse in world economic growth and capital flows.
It became the first major global institution to forecast a full-scale global contraction in 2009, predicting that the economy would shrink by 1.1pc.
IIF chief economist Philip Suttle said: "This is the worst period since the interwar years. The global growth backdrop is very difficult. We foresee a contraction in 2009 in the global economy of over 1pc."
[snip]
No fair injecting facts into this discussion.
Free trade and open borders brought us here.
People we do not have a shortage of goods to buy, the general population is so deep in debt they cannot afford to buy.
The average American household’s credit card debt in 1990 was $2,966. In 2007 it was $9,840.
America has become more a debt 'junkie' - - than ever before with total debt of $53 Trillion - - and the highest debt ratio in history.
That's $175,154 per man, woman and child - - or $700,616 per family of 4, $33,781 more debt per family than last year.
Last year total debt increased $4.3 Trillion, 5.5 times more than GDP.
External debt owed foreign interests increased $2.2 Trillion;
Household, business and financial sector debt soared 7-11%. 80% ($42 trillion) of total debt was created since 1990, a period primarily driven by debt instead of by productive activity.
http://mwhodges.home.att.net/nat-debt/debt-nat.htm
At one point, this was a free country where "buying American" was not forced. I'm ok living in a country where people are encouraged to eat broccoli, but I would not want to live in a country where it is forced.
Exactly what I thot. These are supposedly the “brightest minds” that Barry surrounded himself with??? At least the Republicans showed some backbone and voted no—for now.
Still looking for that safe place on the planet to move to :(
I think the difference here is, this is the first time TheDems have written specific ‘buy american’ verbage into a bill in such a sloppy way that the Brits, EU and Chinese obviously picked right up on it, and, as would be expected, are about to throw a kinipshen fit. Normally, the verbage is left out, and the process is more of a quiet one. Very bad manners and diplomacy by TheDems, especially at a time when, were it not for China propping up our economic spending with loans, we’d be in a lot deeper kimshee than we are right now. Trade wars start real wars. imo jmo moo
I pay extra to buy American when I can. Usually the quality is better, of course there are exceptions. Although I detest employee unions mostly because they hold corporations hostage to ridiculous demands and thereby drive up prices, I still want to support American jobs and products. Don’t get me wrong, I like having the choice to buy something less expensive and foreign-made, but I also prefer that my neighbor (who wants to work) has a job so I don’t have to support him. I’m all for upgrading the lives of foreigners I will never see/meet and reducing my costs ... after my American neighbor has food on his table and clothes on his back.
Trade with the world is a more important part of our economy now than when Smoot Hawley was passed. A trade war would depress the economy further than it is now.
dominant China is as a holder of starch stocks when compared to total world stocks. The facts are at present China holds 35% of the world corn end stocks, 50% of the world rice stocks and 30% of the world wheat end stocks. China’s starch holdings clearly dwarf those of any other country.
Since 2005, China has been incrementally building stocks in all three starch grains. When compared to recent lows for the three starch crop, China’s share of world stocks have risen from 28% in 2005 to 35% in 2008/09, rice from 48% to 50% and wheat from 23% to 30%
The Smoot - Hawley bill did nothing to exacerbate the depression. If anything, it helped Americans.
Those are interesting numbers and could be troubling to some I would expect.
You got that right about Smoot-Hawley....the first people who invoke it are the ones who know little about it (or deliberately lie about it)
Sounds like Morrissey is upset that his Free Trader Globalist Socialism may be usurped by Obama Socialism. Its the Mensheviks crying about the Bolsheviks.
The Obama Stimulus plan is bad...and so is the reguritation of failed Free Trader Globalist Socialism from Morrissey
What hole have you been hiding in? The Great Looting of America has been occuring for at least 30 years.
Now that’s a good name. :)
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.