Posted on 09/21/2009 9:57:06 PM PDT by rabscuttle385
Two weeks ago, both the administration and the Fed announced with straight faces that the recession was over and the signs of economic recovery were clear. Then last week, the president made a stunning decision that signals the administration’s determination to repeat the mistakes of the Great Depression. Much like the Smoot-Hawley Tariffs that set off a global trade war and effectively doomed us to ten more years of economic misery, Obama’s decision to enact steep tariffs on Chinese imported tires could spark a trade war with the single most important trading partner we have. Not only does China manufacture a whole host of products that end up on American store shelves, they are also still buying our Treasury debt.
One has to wonder why this course of action is being undertaken if the administration really believes its own statements about economic recovery. Why are they still trying to fix something they have supposedly already fixed? The most troubling thing is the rhetoric about free trade given to justify this. The administration claims it is merely enforcing trade policies and that this is necessary for free trade. This sort of double speak demonstrates a gross misunderstanding of free trade, economics and world history. Yet these are the same people the country trusts to solve our problems. This sort of thing should remove all doubt about the credibility of the decision makers in Washington.
The truth is this will hurt American consumers by driving up prices of tires and cars. This will also complicate matters for our already crippled manufacturing and agricultural industries, if and when China retaliates against US made products. Whatever jobs might be saved in the tire and steel industries here as a result of this protectionist measure will likely be lost in other American industries. It is even doubtful that those jobs will be saved, as cheap tires can be obtained from other places like Mexico instead. It is difficult to see any real winners among all the losers where trade wars are concerned. If Unions think this is beneficial to them, they are being penny-wise and pound foolish.
Free trade with all and entangling alliances with none has always been the best policy in dealing with other countries on the world stage. This is the policy of friendship, freedom and non-interventionism and yet people wrongly attack this philosophy as isolationist. Nothing could be further from the truth. Isolationism is putting up protectionist trade barriers, starting trade wars imposing provocative sanctions and one day finding out we have no one left to buy our products. Isolationism is arming both sides of a conflict, only to discover that you’ve made two enemies instead of keeping two friends. Isolationism is trying to police the world but creating more resentment than gratitude. Isolationism is not understanding economics, or other cultures, but clumsily intervening anyway and creating major disasters out of minor problems.
The government should not be in the business of giving out favors to special interests or picking winners and losers in the market, yet this has been most of what has consumed politicians’ attention in Washington. It has reached a fevered pitch lately and it needs to end if we are ever to regain a functional and prosperous economy.
The Globalist, Free-Trading approach, while in many ways has driven the economy, it has also destroyed the manufacturing sector (or the whole middle) of our economy, leaving high-end jobs and service sector jobs.
Free trade is great, if you hold your trading partners accountable, otherwise, it’s just another word for economic suicide.
DON’T STEAL the government hates competition hahahha lol
So you imagine if I can get some foreigner to take green piece of paper that they never plan to turn back into US goods for say a car, it is a bad deal for me or the US? Ha!
SHRIMP
Manufacturing still exists in the United States.
The last Toyota I drove was assembled in Georgetown, Kentucky.
The Mitsubishi I drive today was built in Diamond, Illinois.
BMW has a manufacturing plant in upstate South Carolina.
Rolls Royce just entered into agreements with the Commonwealth of Virginia to locate manufacturing facilities here.
I'm sure I could find other examples, if you would like.
Free trade is great, if you hold your trading partners accountable
Or, you compete with them.
Free trade is dangerous only if coupled with excessive and overbearing regulation and taxes that stifle the ability to compete.
Sorry, that should have read "Normal, Illinois."
NAFTA, CAFTA, GATT, ect have done nothing but screw the majority of Americans for a tiny fraction (or faction) to get even richer and have even more control.
True. But those are not free trade agreements, even though that is what they are called. Those are sweetheart deals between two presidents on behalf of their favored supporters in industry and agriculture.
True free trade is always unilateral. Just remove the tariffs and other trade barriers. Whenever two governments get together you can be certain the result won't be anything like free .
Aye. Commerce with all nations, entangling alliances with none. Including Cuba, Iran, ect IMO. Embargoes never work and only hurt the citizenry, leading to more anti-Americanism that usually keeps the enemy regime in power. Russell Kirk said it best: “If you want to spread capitalism, take the chains off and let it work. A good product sells itself.”
Is there that much interest in a RR anymore? I live in NYC/Long Island area and I hardly ever see one on the road, and the ones I do are OLD ones, driven by elderly men in nautical captain's hats.
Maybe Sean-Puffy-Puff-Daddy-Diddy-Diddily-Squat-Homey-Combs needs a BLING fleet for him & his POSSE. Other than that, in this economy, that plant is doomed before it starts, IMO
Ping
Trade Wars and Protectionism are the rules by which our competitors have been playing. Only we seem to be dumb enough to operate under Free Trade rules.
Rolls Royce mainly sell engines these days, including for aircraft
The greatest expansion of the middle class came in the 20 years following World War II. An average blue-collar worker could own a home, raise a family with a stay-at-home Mom, put his kids through college, and retire comfortably. And what we that lead to? Activist citizens. People engaged in the political process. Our rulers took note, and have been taking steps to make sure that we’re more worried about food on our plate and a roof over our head rather than getting in their way.
FREE trade also includes NOT trading with someone who cheats. But then FREE trade does not need government, which is what pisses off the big government types so much.
You can’t build a new world order without destroying the World’s solo superpower.
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