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To: LS
FIrst, you completely miss the "vicinities" effects. I don't care what the ACTUAL trade numbers were, trade affects everything. If prices on, say, zinc, went up dramatically, even if we only import .05 percent of our trade in zinc, it would DRAMATICALLY cause ALL auto and computer and other costs to rise.

Complete utter nonsense that ingores one of the most fundamental principles of market economics: price is determined by supply and demand in the marketplace. More often than not, a minor increase in the cost of one of many raw materials utilized is merely absorbed by the producer. It certainly isn't amplified to reverberate throughout the economy, that's absurd.

Amazing that you would cite Heinz, whose Harvard degree is no better than Bush's,

Actually, Heinz received his Harvad MBA in 1963, prior to the ascendency of liberalism in our nation's universities during the Vietnam War era of the late '60s and early '70s. Dubya received his Harvard MBA in 1975, when the corrupting liberal influence in academia was already established. Heinz's Harvad MBA IS more credible than Dubya's.

43 posted on 07/25/2002 10:51:41 AM PDT by Willie Green
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To: Willie Green
No it is not utter nonsense and it is PERFECT market economics, unlike your leftist protectionist gobbledygook. When you artificially raise prices of raw materials, which is what Hawley Smoot did, it not only affects all those things in the IMMEDIATE vicinity---cars built with tin that has a tariff slapped on it, for example---but it has spillover effects that are WELL documented. Fewer trucks haul cars, because fewer cars are made; the trucking industry dips; layoffs there cause electronics sales to fall; and so on. But of course, you really KNOW this and are just being argumentative because your STUPID TARIFF was a damnable disaster, and everybody except that idiot Heinz knows it (he's dead, so I guess he's beyond being informed.)
47 posted on 07/25/2002 5:24:33 PM PDT by LS
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