A post by Maynard
Perhaps you saw this news item, “President Obama to water down ‘Buy American’ plan after EU trade war threat”.
This is standard economic wisdom: Broadly speaking, free trade brings prosperity, and trade restrictions dampen it. We also have trade treaties we’re expected to honor, and which a “Buy American” provision might violate. So there are a number of reasons why it’s unwise to distort the natural flow of trade.
However, the “stimulus” has nothing to do with natural economic activity. It’s an artificial orgy of spending, using borrowed money to churn the economy, and it’s shaping up to be stupid and wasteful.
If there’s anything more stupid and wasteful than borrowing a trillion dollars from China so unemployed Americans can wash rocks at the beach, it’s borrowing a trillion dollars from China so unemployed Europeans can undercut the locals and win those lucrative rock-washing contracts. If we’re going to burden our grandkids with debt so Congress can bring home the pork one more time, we might as well eat that pork ourselves instead of throwing a block party for the gluttons next door.
Are the Europeans going to reciprocate and invite us to their party? As Tammy posted the other day, they’re not that stupid.
Maybe this turn of events will help convince some in Congress that the stimulus in its current form is a horrible idea.
Protectionism is ALWAYS a bad idea. But it’s not nearly as bad an idea as this obscene bill. Regardless, the “stimulus” is on its way to defeat, and after less than two weeks, Obama is thankfully well on his way to being a one-term president.
Maynard,
I agree with the characterization of the “stimulus”. When did Keynesian policy ever prove itself, and, conversely, when did supply-side economics ever fail us?
Pelosi, Reid, and apparently Obama want to nationalize our banking systems and socialize every American. That is now clear. But what is not clear is the approach to free trade in an environment where the dollar has been, and will continue to be, devalued. To the point where the EU and even Russia are calling for a new monetary system. Personally, I understand the idea that free trade should promote joint prosperity, but the plain fact is that NAFTA has had the exact opposite impact on America. When does the American interest count?
My God, what happened to our country in the last year?
This underscores how Obama is incapable of making difficult decisions; how basically insecure he is about formulating strategies, be they domestic or international, without the blessing of others. Thank God he was only a burgeoning grassroots organizer in the September of 2001.
Although I have absolutely no doubt in my mind that our economy is gradually coming back, yes I said it is on the rebound, this alleged stimulus if passed by some miracle or some act of marxism will only prolong the negative economic impact. We need to establish a more productive, hard working, dirty, sweaty and strong American. I could care less about Europe or Russia. Maybe I am bitter because I was born and raised in Pittsburgh. Maybe I feel like the smoke billowing from the stacks in Homestead Pa. when i was a child simply could not be good for humans to breathe. Why if not for the soot, perhaps my Grandfather who died at eh age of 86 would have lived to be 100. It is a shame, Perhaps my 95 year old grandmother might not make it to 100 because of all that steel production. I remember we used to clean our windows twice aday and they were still dirty. Maybe that is why every obituary you read here are people in their 80′s and 90′s. We used to call that soot billowing from the stacks ‘PROSPERITY’. Where is now? I guess we have to feel complacent since we all breathe clean air and we can get a good bargain at Wal mart. Damn all of you who have no idea what it like to have blisters on your fingers. Damn all of you who do not understand that what is real is what you can touch and smell. We have great ‘Green’ areas for bycyclist and runners where Steel mills once stood. Every year I see more and vagrants begging for food or maybe a dollar. All I know is you cannot it scenery. Maybe we have a choice like get dirty, sweat and stink or die.
NAFTA is not necessarily the catalyst . In fact NAFTA may produce more positive results as a means of stabilizing especially the nation to our south. I actually advocate more of a cordial and positive relations with Cananda and Mexico. Mexico has so much untapped resources that could be tapped and turned into something real.
Some times, and believe me not very often, I actually have a sense of pride when I see an immigrant, any immigrant walk freely among us. We know what we have in spite of our problems. We do not know what the immigrant gave up or who the immigrant left behind to be here. This is America and I love it. This is America and we welcome. We will survive. And BARKEY will be gone in four years.
Let me adjust my Barky “Rose Colored Glasses” a sec. Ah, here’s how we get to buy the steel here:
Just put in the requirement that the workers that make the steel (no matter where it is made) are union members. That lets out Mexico, India and China, because it is illegal to organize labor in those countries.
Next, require that any steel produced for these projects must be made pursuant to U.S. clean air standards.
Final blow: require that any steel purchased for these projects must not have a carbon foot print, larger than that made in a basic oxygen electric furnace (the cleanest available technology mostly used here to comply with the clean air act).
Now we get to use our steel and make it to. Let Sarkozy eat cake.