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]

"Sounds like some spineless schill if you ask me."

Do you live in a farm state? I hope you would challenge the economic logic of my arhument, instead of making snide remarks.

Do some research on the web, and find out how much trade the US does with the EU. Compare that to trade with Canada, Japan and China.

After you do that, then we can debate facts based on economic logic, not ad hominem.

[FairOpinion]

US GDP is $11 trillion, out of which our export to France are $19B, which is 0.2%.

France is INSIGNIFICANT to us.

The GDP of France is $1.5 trillion, and we have been buying almost $30B from them, which is 2%, a factor of 10 larger percentage, than their significance to us.

Since France's GDP grew an anemic 0.9%, that means, that if we take away OUR 2%, their GDP will be SHRINKING by 1%.

The French should have thought of that, BEFORE they decided to veto the UN resolution, before they went around and tried to blackmail other countries, like Turkey into refusing to support us.

It was FRANCE's choice.

Now they have to live with their choices.

BOYCOTT EVERYTHING MADE or OWNED by France or the French.

[pacpam]

Where did you get the info that said we were the largest exporting nation in the world? That statement doesn't mean diddly when we owe more that we get paid when the world is considered and I'd guess your company exports more than it sells within US boundaries.

[ComtedeMaistre]

"Where were you, say, while Bush was being stonewalled at the UNSC by France?"

With the Bush team, of course. But now that the war is over, it is time to help people get jobs. That is the general idea behind Bush's proposed tax cuts.

I posted this to ensure that Bush's tax cuts realize maximum benefit, by boosting exports to America's largest export market, the EU.

[ComtedeMaistre]

>>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.<<

Thank you sir. You are a rare voice of economic logic.

Some people here believe that, if they boycott the EU - America's largest foreign market, and they incite a European economic backlash that puts millions of Americans out of work, they are merely being "patriotic". What kind of "patriotism" is that? Did they learn their concepts of patriotism from the cartoon character, Yosemitie Sam?

I am shocked at the level of economic illiteracy I am seeing from supposed "conservatives" who are supposed to be on the side of free enterprise. Their illogical economic reasoning is what one would expect from Dummy-crats like Gephardt and Sharpton.

[FairOpinion]

[ComtedeMaistre]

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

That is mostly benefits high-tech sectors in Seattle and Silicon Valley. Do you have statistics on:

1. The two-way trade in agriculture, which mainly benefits the farmers in the red electoral states - the ones I am constantly referring to?

2. The two-way trade in financial services, which benefits America's less regulated financial industry, which results in many of those French exporters investing their trade surpluses in American financial markets?

[winner3000]

Your economic argument is correct if we were boycotting the entire EU and if the entire EU was boycotting us. We're talking only France and much more weakly Germany and Canada.

I don't agree with anyone in this post that says that a mutual boycott actually helps us economically (even though we import from France more than we export). The whole theory (proven over and over) of free trade is based on comparative advantage of different nations, which allows all the nations involved to be better off.

With that said, it is high time that We, the People kick some French a**. The boycott is already bearing fruit as French industry is already whispering sweet nothings in Chirac's ear. I'd say that in the short run, it would be tremendously useful if more people would join in the boycott on France. I keep reading in the French media how Chirac & co. think that the boycott will be only temporary. We need to hit France hard so they'll think twice before they perform actions designed to put our soldiers in danger (effectively what they did with the delay tactics at the UN). French people already hate us for God's sake (1/3 of them wanted Saddam to win!).

The advantage with this boycott is that it is not state sponsored (through tariffs, etc.). France therefore cannot officially retalliate except through their own people's actions. I'm just afraid that if we don't do anything, countries around the world will think there is never any economic price to protecting America's enemies.

I regret any harm that will befall our exporters during this period of time. We must defend our principles now or pay a much heavier price in the long run.

[ComtedeMaistre]

>>>>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.<<<<

Do you really believe that unionised American workers making a wage that is much higher than $5.15 an hour, will produce goods at the same exact price you pay today at Walmart? Get real.

Pat Buchanan and his supporters are right about immigration. But they do not understand trade.

[ComtedeMaistre]

>>>$$$$$$$ or principle.<<<

During the war on Iraq, I was sympathetic to the calls to boycott the EU.

But now that the war is over, I support giving jobless Americans jobs, so they can earn $$$$$$, and be able to put food on the table.

If that reflects a lack of principle - so be it.

[Publius6961]

Do you have the slightest understanding of economics?

Just enought to know that if you lined up all economists end to end, they'll all be pointing in different directions.

[Andrewksu]

I think you are missing the point, we are giving the French a little poke in the ribs and making them aware of how much they need our support. The economic influence is minimal, but the message is clear and powerful. the American people will no longer tolerate the smug French and their attitude twords us. How about more trade with Australia, U.K., Denmark, Spain, etc. Give the benefit of our business with countries that are friends.

We also ought to look at protecting our intrests first, such as the h1-b work visas that are allowing cheap foreign labor to undercut our high tech jobs. We have been turing our cheek and opening our doors for too long, it's time to correct the situation.

[FairOpinion]

"I think you are missing the point, we are giving the French a little poke in the ribs and making them aware of how much they need our support"

Note this article, where they want us to "forgive and forget" while they want to continue undermining us and working against us.

Say "NON" to France!

http://www.freerepublic.com/focus/f-news/899903/posts

[411 freedom fighter]

STFU!!! When we're done with Korea I say take the WMD away from Russia. Let's just see how commie europe responds then. You are either with us or with these terrorist bastards.

Freedom Fighter

[ComtedeMaistre]

>>>France is INSIGNIFICANT to us<<<

But not the EU. France and Germany are joined at the hip, and they are the two biggest players in the EU. They run the EU. If both countries were to hit back at the French boycott, many smaller anti-Americans European nations like Greece will jump on board.

Did you get the statistics on agriculture?

And you missed my larger point. Bush needs to get the economy booming by fall of 2004. Do you think that inviting a European trade backlash will help him?

[ComtedeMaistre]

>>>I hate to break this to you, but our economic recover does NOT depend on our export to France.<<<

You obviously understand economics. But my concern is that talk of boycott will reach EU member states, where 90 percent of their populations are anti-American, even where the governments are pro-American like Spain and Italy.

Many here have pointed out that the US imports more than it exports. That is true. But if all foreigners who hate American policy were to organize anti-American economic boycotts, to retaliate against US boycotts, what do you think would happen to Bush in 2004?

[FairOpinion]

You don't seem to get it.

The vast majority of the Americans are sick and tired of pipsqueak countries, like France working against us.

It's the American people who started to boycott France.

The American people will love Bush for standing up to the EU.

The US has been protecting Western Europe against the Soviet Union, otherwise Western Europe would have become as poverty stricken as Eastern Europe under the same regimes.

The "gratitude" of Western Europe, with the exception of the UK, Spain and Italy, is underwhelming, to say the least.

A bunch of ingrates. Why should we keep feeding snakes, who can't wait to strike at us?

THAT is how most American people feel.

Since we have a trade deficit, if trade with certain countries stops, we have a net gain, more "Made in the US".

Let France go find Saddam's Swiss bank account and borrow money from him.

[MissAmericanPie]

Good point. We have let alot of industry go the way of the loon in order to prop up the E.U. economy. After all they have nothing anyone needs really, and certainly no natural resourses. Without the USofA they are in serious trubs.

[ComtedeMaistre]

>>>French people already hate us for God's sake<<<

If opinion polls are to be believed, so do Germans, Canadians, and, despite the fact that their governments are pro-American, 90 percent majorities in Italy and Spain are openly anti-American. Even the pro-Western Turks have turned against America.

My fear is that, if Frenchmen were to declare economic retaliation against America and call on fellow Europeans to join them, there is a very high probability that Europe will follow suit. The American economy could end up much worse than under Bush '41 in 1992.

[ComtedeMaistre]

>>>We're talking only France and much more weakly Germany and Canada.<<<

If only those 3 nations were to boycott America economically, Bush could lose in 2004. Just check out statistics on the trade volume between America and those three nations.

And if those three were to boycott America, I am sure that many America-hating Europeans will follow suit, and doom out economy.

I posted this because I don't want GWB to face the same fate as his Daddy.