Posted on 02/26/2009 9:37:08 PM PST by TigerLikesRooster
Can Smoot-Hawley only happen in the US?
February 26th, 2009 by Michael
Yesterday in a meeting I was asked by an investor why, even while I have been writing maniacally about the crucial importance of global cooperation, I was so consistently pessimistic about the possibility of the major economies arriving at a “grand bargain” that will minimize over the long term the cost of the current crisis. I think, in fact, that a nasty fight over trade is very probable and I worry that not only will trade conflict come as a huge shock to China’s economy, but also that Chinese actions and public statements are actually contributing more to that probability than all the buy-America, buy-Europe talk filling the air.
Let me pluck one reason from the headlines of today’s People‘s Daily, the official mouthpiece of the country’s ruling party. The article, titled “Buy American can’t save the US economy”, is based on interviews with a number of Chinese commentators. One question:
Why does the US, which has always advocated trade liberalization, put forward such a clause? Can the “Buy American” provision offer effective solutions to the US’ economic problems? What impacts will the implementation of this economic plan produce?
/snip
The US cannot give us another Smoot-Hawley. In 2009 only China and Germany are really in a position to enact the current version of Smoot-Hawley – to engineer polices that expand their massive export of overcapacity or, what amounts to the same thing, their massive import of demand – and if you want to figure out who might be doing it, you need only to look at the direction of trade surpluses.
(Excerpt) Read more at mpettis.com ...
Ping!
It’s time to move all manufacturing back on our own shores...
AND throw out the foreign workers
Yeah, no more of those special work visas to easily replace American workers. It’s time to concentrate on American workers...
It’s a rather pathetic read.
But don't let simple economics stop you from suggesting a course of action that is so inefficient and wasteful. It certainly doesn't stop our elected representatives!
I don’t think it’s in the best interests of the U.S. to have manufacturing in other countries and especially in some countries like China, the Communists, who want to go to war with us.
In 1930, the Republican-controlled House of Representatives, in an effort to alleviate the effects of the... Anyone? ...the Great Depression, passed the... Anyone? ...the Hawley-Smoot Tariff Act, which... raised or lowered...anyone? raised tariffs, in an effort to collect more revenue for the federal government. Did it work? Anyone? It did not work, and the United States sank deeper into the Great Depression.
What American company can afford the taxes and regulations to manufacture in this corporate wasteland. Ohbummer is only going to make it far worse.
Pray for America
The 2007 Piaggio BV500 out the door price is about $6600 right now. Double that. Now you're in the price range of a low end Harley or mid range Japanese cruiser. The dealers of European motorcycles will be put out of business over an agricultural conflict. Totally stupid. No surprise when politicians are involved.
The way to return the US to the glory days of manufacturing is to have a new Hitler take over germany, start a war that destroys europe, england and russia and have the same happen in japan which destroys japan, china, and the rest of east asia.
Then presto, the US becomes the economic superpower of days gone by.
Gross Domestic Product (ref. 1929 dollars in millions) Year GDP 1929 101,444 1930 91,513 1931 84,300 1932 70,682 1933 68,337 1934 74,609 1935 85,806 1936 95,798 1937 103,917 1938 96,670 1939 103,736 1940 112,961 1941 126,237 Source: National Bureau of Economic Research, NBER Series 08166.
The BV500 is pretty sweet. I went to the vespa center and checked them all out. Too dangerous here though.
The BV500 engine probably sounds better after it’s warmed up. Because I thought it sounded a bit on the chattery side. But hey it has a top speed of 110mph, not bad for a 500cc single cylinder engine. IT’s way too expensive.
| Year | Unemployment rate |
|---|---|
|
1923-29 |
3.3 |
|
1930 |
8.9 |
|
1931 |
15.9 |
|
1932 |
23.6 |
|
1933 |
24.9 |
|
1934 |
21.7 |
|
1935 |
20.1 |
|
1936 |
17.0 |
|
1937 |
14.3 |
|
1938 |
19.0 |
|
1939 |
17.2 |
|
1940 |
14.6 |
|
1941 |
9.9 |
|
1942 |
4.7 |
I would love to see that happen! I could use a job.
I don’t think it will tho, as I think they left for a reason... Over regulation and over taxation. Well, that’s two reasons, sorry.
Even if they did come back, they would only be hiring illegals to keep the costs down and stay competitive.
Pat Buchanan was right about this years ago and I supported him for years. He is very bad on Israel and the Jihad.... But right on most else
This is very simple and is called economic nationalism.
American do their own work instead of running up ruinous trade deficits ....And importing foreigners to do work
But there are/was tremendous profits in doing the exact opposite and selling out American workers and entrepreneurs. We are reaching the end game on this
“Hawley-Smoot Tariff Act” = die hard myth!
Perpetrated by free traitors like the loony libertarian Cato(mite) Institute. Which gets huge corporate contributions
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