Posted on 02/01/2009 3:12:01 AM PST by TigerLikesRooster
In Davos, protectionism is a dirty word
The beggar-thy-neighbour phase has begun in earnest. "Buy American" legislation has advanced from a barely credible threat to imminent reality on Capitol Hill in just weeks.
By Ambrose Evans-Pritchard Last Updated: 11:31PM GMT 31 Jan 2009
The House has voted for a bill that prohibits the use of foreign steel in most infrastructure projects funded by Barack Obama's $820bn (£563bn) rescue package. The Senate is drawing up plans to widen that to all manufactured goods.
This is what happens when a country loses half a million jobs a month, and when the state becomes spender-of-last-resort. Taxpayers are tribal. They do not want precious stimulus to feed the foreigner.
Even so, this Dutch auction has the disorderly feel of the Smoot-Hawley Tariff debacle in 1930, though this time the collapse of commerce – if allowed to happen – will have very different consequences for the global balance of power.
Mr Obama can veto the law, should he wish to pick a fight with Capitol Hill from day one. The world watches and waits in horror, especially in Davos.
"Everybody here is talking about protectionism. There's not a prime minister present not talking about protectionism," said Peter Sutherland, former (GATT) trade chief and now chair of BP.
Days earlier, US Treasury chief Tim Geithner called China a "currency manipulator" – meaning that Beijing holds down the yuan to boost exports. The term is turbo-charged. It implies mandatory trade sanctions under US law.
(Excerpt) Read more at telegraph.co.uk ...
When times get tough, the average worker always runs to protectionism. Its just human nature. The fact that it hurts them in the long term is forgotten.
People that realize that have to stand up and remind them.
Wake up, there is a reason the high tech companies(IBM, HP, etc.) are shifting attention, assets (read research, manufacturing, technology centers, etc.) to the Middle East, Asia and parts of South America. The executives in Davos see power and money moving south and east. They go where the MONEY is...those attending Davos don’t give a fig about the US recovery except to the extent it allows them to suck out more $$$.
So you are saying you want the government to control what goods can and cannot be sold?.........
As far as imports, yes
Slap tariffs on them
I don’t like 700 billion dollar trade deficits
I agree. Just look how Haliburton relocated to Dubai with nary a thought
Then buy less. Tariffs are artificial bandaids to favor special interests.
More government interference with trade, for the children!!!
Pretty funny coming from Tim "TurboTax" Geithner.
I’m warming to the idea of buying american and hiring american workers.
In the end it will be the USA that brings the world out of the current mess.
the way this will happen will be consistantly low energy prices and american workers working more productively and making more money.
Oh and one other thing. the technology is coming that will collapse the cost of water desalination and transport—making it economically feasable to turn the world’s deserts green and double the size of the habitable planet.
At present time the number of Americans with college degrees is something under 25%.
To be perfectly frank on the subject, that means 75% of the population can’t be a computer or communications engineer, biotech guy or researcher.
Your comments are all apropos and your view is accurate.
Perhaps you might start up a geopolitics - geoeconomics web site - blog. I expect such a blog would develop quite a following. I am impressed with your insights.
Certainly I believe there is room for a counter balance to Asia Times.
You’re gonna love this little stunt. After taking hundreds of billions of dollars, Citigroup and pals use it to stockpile cheap oil to sell back to us when the prices go up. Bailout supporters will claim it was a loan that will be paid back. (last I recalled a loan required that the loaner give permission). In reality it’s like being mugged and the mugger buying goods to sell them back to his victim at a higher price.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aZSSMtC6ynNY
Darn that bank, they should lose money instead. That'll help them pay back the bailout loans.
Right on, brother!
Just preachin' and teachin', that's what we need now.
God, gold, guns, and guts will see us through. We may need temporary use of a few lampposts, though.
I would say that the single greatest job-killer in Michigan is the SBT. Funny how only free-traders ever bring up taxes.
> To be perfectly frank on the subject, that means 75% of the population can’t be a computer or communications engineer, biotech guy or researcher.
I’ve met more than one (each) computer and biotech engineer without a college degree. BTW, last I checked being a mortgage broker did not require a college degree either. In fact, you can (and multiple people have) become a very wealthy stock broker and salesman without a college degree.
that was my point. you can be a real estate sales guy or broker without a degree. those types of industries gave a lot of folks work.
the type of job options they now have are extremely limited. 30 years ago they would be in factories. today they’re in wal-mart or some similar situation.
> the type of job options they now have are extremely limited. 30 years ago they would be in factories. today they’re in wal-mart or some similar situation.
Plumbers, Carpenters, Car mechanics, Electricians, Handy men/General contractors, Builders, Heavy machinery operators, etc.
All of these are “not in manufacturing”, all of these are capable of “6-figure incomes”, all of these are harmed by protectionism, none of these benefit from overpaying for goods.
And, lest I forget, none of these require a college degree.
All of those have taken a major hit during the current recession.
And when is a “handy man” a six figure income. C’mon, you just threw that in there to fill out the list, didn’t ya?
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.