Help President Bush Revive the Economy - Go Easy on Talk of Boycotting EU Nations (Important!)

Comte De Maistre

[ComtedeMaistre]

As an economist working at a mid-size food processing corporation in the South, I want to offer a suggestion to Freepers that may help Bush's tax cut plan intended to revive the economy to succeed. Our firm does a lot of business with European Union (EU) nations such as Germany, France, Belgium, Holland, etc. But next month, we are giving pink slips to 17 workers, because orders from EU nations have reduced sharply.

America is the leading exporting nation in the world. The European Union is America's largest trading partner. America exports more to the EU nations, than it does to Japan, Mexico, China, or Canada (or numerous combinations of those nations).

Conservatives have to be careful with this boycott talk, because it may unintentionally damage the economy, reducing chances for Bush's re-election in 2004. If there is a counter-boycott in Germany, France and Belgium, in response to attempts by Americans to Boycott those nations, what the hell do you think will happen to the US economy? President Bush has a brilliant plan to revive the economy through tax cuts for industry, which will stimulate more production and job growth. But for that great plan to succeed, EU member nations will need to buy more American goods.

If EU nations were to stage a counter-boycott against America, the greatest losers would be American farmers - those who live in the Red-colored states on the electoral map for 2000. When Belgians and Frenchmen eat their croissants at breakfast, there is a very high chance that the wheat used in the bread was grown by an American farmer. The poultry and canned foods industry cannot survive without EU markets. Even the beef served in the finest European restaurants, is largely produced by American farmers. It is true that the EU rejects hormone-injected beef. But there are thousands of Americans making a living from speciality exports of American-produced non-hormone beef, which fetches a higher price in European markets. If Europeans were to hit back economically, they would buy more wheat from Brazil and Australia instead, and import more of their beef from Argentina.

Perhaps the only American industries that may effectively weather a potential EU boycott are some high-tech firms which have a virtual monopoly in their product, such as Microsoft.

Yes, I agree with you that most EU politicians are scum, such as Jacques Chirac and Schroeder. We should denounce them, and freep their UN missions. But we should also work to ensure that the American economy will be roaring in 2004, helping Bush to a landslide victory similar to that of Reagan in 1984, or Nixon in 1972.

[ComtedeMaistre]

Lets declare that the war is over, and we won. We should focus on increasing our exports to the EU, and elsewhere. It isn't worth it to maintain a hostile political stance to the EU and Canada, because it is worth a couple of million jobs. Nobody wants an economy like that of 1992, which injected Slick Willie, and stained our nation (the pun is intended). No one here want to see a President John Kerry, President Howard Dean or (God Forbid!) a President Dick Gephardt (If Gerphadt gets elected, I will leave the country, and unlike Alex Baldwin, I keep my promises).

[pacpam]

Excuse me, but from what I read, the people being let go are because the EU has already started a boycott of American goods.

[sick1]

I'm not all that gung-ho on the boycott Europe thing, though I have a ban on French wine and Compari. But what I don't think you take into account is that for every pink slip you may have at one American company there may be others that are hiring because of increased business.

If we take away 100m of business from French companies and hand it to American companies it's likely to help not hurt considering that an America focused company might employ 60-80% of its people in America while a French one might employ 20-30%. Now I'm proposing that the above numbers are right but the general idea seems reasonable and suggests that a little boycott might not be so bad.

[Texas Eagle]

As an economist working at a mid-size food processing corporation in the South.....

What the? Seems to me they should be handing out an 18th pink slip.

[ProudGOP]

Last I knew, we import more than we export. If we stop buying their stuff and they stop buying our stuff, they lose more sales because of the trade imbalance.

[ETERNAL WARMING]

ComtedeMaistre
Since Mar 14, 2003

How convenient.

[templar]

If we stop importing stuff from Europe, China as well, and they stop buying from us, we have a net gain in employment since the pig people of Europe and China will be out of work and Americans will go back to work making all that stuff we used to import. In case you were unaware, we have a balance of trade deficit; that means we import more than we export.

[RLK]

Last I knew, we import more than we export. If we stop buying their stuff and they stop buying our stuff, they lose more sales because of the trade imbalance.

---------------------

This is true. There might be selected dislocations in our economy, but the overall effect would be beneficial here.

[ComtedeMaistre]

"If we take away 100m of business from French companies and hand it to American companies it's likely to help not hurt considering that an America focused company might employ 60-80% of its people in America while a French one might employ 20-30%."

True. But American agricultural exports to France, are worth far much more than French wine and cheese exports to the US. Frenchmen eat bread (grown by American farmers) daily. But Americans do not drink French wines daily - only on special ocassions. In an agricultural war, America would suffer more than France.

[Dolphy]

What the? Seems to me they should be handing out an 18th pink slip.

Thanks for making me laugh.

[marsh2]

The numbers and types of European made ordnance and technologies found to have been supplied to the Iraquis in direct violation of International agreement by these same countries leads one to believe that some leading European nations speak with forked tongue. From the oil agreements already negotiated with Iraq and these same European countries, it is apparent that Europeans are motivated more by money than by principle.

What of our sons and daughters in harmns way? How much did the actions of these trade "partners" contribute to the deaths and injuries our folks suffered in this war?

If nothing else, this war should have taught us that these countries are not our friends and are not to be trusted. I choose not to support their economy by refusing to purchase their products. I will buy products made in the countries of coalition members.

We have a trade deficit. Better we buy at home anyway.

[ComtedeMaistre]

"Last I knew, we import more than we export. If we stop buying their stuff and they stop buying our stuff, they lose more sales because of the trade imbalance"

That may be true. But economic prosperity is more essential to the re-election of an American President, than a European leader.

In France, they are used to double-digit unemployment, in their over-regulated economy. In Germany, Schroeder got re-elected in a nation suffering a recession, but the used America-bashing to get re-elected - a most despicable act.

If both America and the EU are in recession in 2004 as a result of boycotts, the Dummy-crats will wage class warfare to dislodge Bush in the elction.

[gcruse]

As an economist working at a mid-size food processing corporation in the South...

Heh.  Nah, it's too easy.

Boycott those nations, what the hell do you think will happen to the US economy?

What we don't buy there, we'll buy here, juicing up the economy?

But we should also work to ensure that the American economy will be roaring in 2004

By sending money overseas?  What kind of economics is that?

[ComtedeMaistre]

"There might be selected dislocations in our economy, but the overall effect would be beneficial here."

I agree. But the beneficial dislocations that you describe will happen in the long term - which is much later than the 2004 election cycle.

[Willie Green]

World Trade Organization dumps on country's farmers

Export Illusions: Most International Trade Agreements are about Investment, Not Exports

The heck with the Euroweenies.
Let them eat their own food.

[ComtedeMaistre]

"If nothing else, this war should have taught us that these countries are not our friends and are not to be trusted."

Trade just not just happen between friends. Do you remember that Ronald Reagan supported grain exports to the USSR during the Cold War? America also does plenty of business with the butchers in Beijing, who murdered their own people in 1989.

[TLBSHOW]

no thanks! Just support the Bush tax cut.

[ComtedeMaistre]

"How convenient"

What is convenient? Calling for better trade relations with the EU, now that America has won the war? Supporting more American exports to Europe, now that Bush is trying to pass a tax cut, to help American businesses?

Do you have the slightest understanding of economics?

[gcruse]

No, I think what he meant by convenient was the timing of your enrolling at FreeRepublic to push this agenda. Where were you, say, while Bush was being stonewalled at the UNSC by France?

[ComtedeMaistre]

"Americans will go back to work making all that stuff we used to import"

Pat Buchanan uses the same rhetoric in promoting protectionism. The American economy has changed and restructured significantly. It is no longer what it was when Teddy Roosevelt or Abraham Lincoln were in office.

Want to pay $2,000 for Nike shoes that now cost $150?