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.

[whadizit]

Even GW is boycotting the French! When G-7 meets, he is staying across the border in Switzerland, refusing to stay in France! LOL!! I love it!

[ComtedeMaistre]

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

It is known as free trade.

America has the most efficient and productive workers on the face of the earth, that is why it exports more than any nation on earth.

[FairOpinion]

"Important".

I bet it's important, to the French, who acted as an enemy, not as a friend. Now they can reap, what they sowed.

Your arguments are transparent. WE will not suffer if we don't trade with the French, THEY will, and well they should. Maybe next time, if there is a next time, they won't line up with our enemies against us.

Keep the French boycott! If they French don't like it, they can put the blame where it belongs, on the shoulder of Chirac, who was conspiring with Saddam against the US.

[ComtedeMaistre]

"Let them eat their own food."

And let our farmers living in the red-colored electoral states, to go bust?

I don't think so.

[gcruse]

Sending money overseas isn't known as exporting. Where did you get you Econ degree?

[ComtedeMaistre]

"Just support the Bush tax cut"

I do! I do! I never met a tax cut I did not like.

[gcruse]

When G-7 meets, he is staying across the border in Switzerland, refusing to stay in France! LOL!! I love it!

No, he isn't.  But don't let that get in the way of your celebration.  ;)

[Tempest]

"ComtedeMaistre
Since Mar 14, 2003

How convenient."

So true, so true. Sounds like some spineless schill if you ask me.

[Carthago delenda est]

I've been wondering for a while if this boycott stuff was all it was cracked up to be. If free trade is good, what sense does it make to stop taking part in economic arrangements that benefit both parties to the agreement? Since trade is free and not coerced, it would seem to me like this is counterproductive and probably doesn't make much economic sense. Thanks for the input.

[FairOpinion]

And here are the facts. As I said, we will not suffer, for us, as well they should. We better start treating our enemies as enemies, not friends. France went out of its way to demonstrate that they are our enemy. Keep the boycott going!

U.S.-France Bilateral Trade-reached US $47.4 billion during 2002, a 5.7 percent decrease over2001. During this period,

U.S.exports to France totaled $19.0 billion, a decrease of 4.3 percentover 2001,
and U.S. imports were $28.4 billion, a decrease of 6.6percent.

The United States had a trade deficit of $9.4 billion in 2002. (with France)

This compares to a $10.5 billiondeficit in 2001.

Developments in EconomicGrowth - France's real gross domestic productin the fourth quarter 2002 was only 0.9 percent (annual rate) and was1.7 percent above a year ago.

http://216.239.37.100/search?q=cache:Hv5-gMTSU0sC:www.ita.doc.gov/td/industry/otea/trade_perspective/current.pdf+US+exports+FRance&hl=en&ie=UTF-8

[templar]

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

That's absurd. I'm just going to consider you a lunatic if you can't support those figures.

Now ... be realistic!! Go down to a Red Wing store and check out prices on high quality American made (at American working and living wage labor) shoes and boots. Better quality and at about the same price. Competition, what the market will bear, determines the prices of goods. Sellers will sell shoes for the amount buyers are willing to pay and adjust their profits up or down accordingly. In the case of foreign made Nikes, they have adjusted upwards considerably since that is what people are willing to pay and what American workers can produce an equivalent product for. They are made overseas because companies can make a greater profit at the same price with the cheaper foreign labor. You claim to be an economist, but if you can't figure that simple fact out, I suggest you consider a different line of work.

[ComtedeMaistre]

"Sending money overseas isn't known as exporting."

I know. But much of that money that Asians and Europeans make when they sell to America, comes back to the American capital markets (stocks, bonds, etc.), because America is a safe haven for investors. That money in turn generates more jobs in the financial sector.

America's financial markets work better than those in Europe or Asia (with the possible exception of Hong Kong). America has a huge surplus in financial services (a surplus that has the same economic impact as exports).

[Publius6961]

Welcome to Free Republic.
Let's see now... your first contribution is to preach to us dummies and force us to make a choice:

$$$$$$$ or principle.

Where you stand is crystal clear.
As for me? Better send some armed goons to make me stop resenting the euroweenies and to start buying European stuff.
Lots of luck.

Maybe the Dixie chicks and hollywood can help you out.

[FairOpinion]

I hate to break this to you, but our economic recover does NOT depend on our export to France. I know the French have delusions of grandeur, but it seems to be getting worse every day, if they think it makes a difference to us.

[grapeape]

Are you kidding? I still don't buy Toshiba because of what they did to the Navy. There is no way I'm going to buy anything from France. I have now had enough.

[gcruse]

But much of that money that Asians and Europeans make when they sell to America, comes back to the American capital markets (stocks, bonds, etc.), because America is a safe haven for investors

Not necessarily, as any economist would know.  What also happens is that gold reserves for the
foreign country are increased and they give us back our dollars, especially during times when our
interest rates are so low that  the loss of returns outweigh the security.
And where did you get your econ degree, again?

[ComtedeMaistre]

"Even GW is boycotting the French! When G-7 meets, he is staying across the border in Switzerland, refusing to stay in France!"

Not true. That was mere speculation by the media, that was denied by the White House. Bush simply told Tom Brokaw that he will not invite Chirac to his ranch.

But while Bush said diplomatic relations with French politicians will remain cold, he does not want to anger the French by refusing to overnight in France.

I support Bush's snub to French politicians. But Bush is also aware that he needs to maintain good terms with EU citizens, so they may buy more American goods, and make his economic revival plan succeed.
http://www.swissinfo.org/sen/Swissinfo.html?siteSect=143&sid=1784892

[ComtedeMaistre]

"WE will not suffer if we don't trade with the French"

Tell that to American wheat, beef, and pork farmers, who live in the Red-colored electoral states.

High-tech firms in liberal regions such as Seattle and Silicon Valley will not suffer much, because they have a virtual monopoly in some technology products in the world market.

But there are many other nations besides America that are agricultural producers on the world market.

[poet]

I'll support his tax cut when he stops the obscene spending spree he's been on, and quits bailing companies out with our tax money.

FReegards

[tbird1]

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

NOPE! I won't even pay $150 for them