The New Protectionism?

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Writes Herman:

I would look for U.S auto manufacturers, particularly GM ,to push for protective tariffs to "save American jobs." It won't work, of course. The only question is, will Congress be taken in? My guess is, yes.

"Suppose I were a member of Congress. And suppose I were an idiot. But I repeat myself." - Sam Clemens (possibly paraphrased)

The Smoot-Hawley tariff is, of course ,widely cited, even by so-called “mainstream” economists & historians, as an exacerbating factor to the 1930s depression.

Look for overseas auto manufacturers to increase their U.S. footprint and continue engineering innovation while U.S. manufacturers continue to live in the past, and attempt to peddle overpriced, obsolete pickup trucks repackaged as “SUVs.”

BTW, I love my 1989 Ford F150 (bought new for cash – recently repainted, 237,000 miles on original engine) , and also my 2006 BMW 325i. :)

Wir fahren auf der Autobahn…

Mass transit is for sheep (on their way to slaughter).

8:41 pm on November 21, 2008

The New Protectionism

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According to Pat Buchanan, not bailing out the entire Americna auto industry is “terminally stupid.”

Buchanan, being the Keynesian that he is, really believes that China’s latest redistribution scheme will catapult it to limitless propserity.

And Buchanan, being the nationalist that he is, thinks it is a legitimate, and indeed laudable, prerogative of the state to prop up industries in the name of economic warfare.

He’s wrong on both counts, of course. See Lew Rockwell on “The Myth of Good Government.”

Thinking back to the 1990’s and the ’91 recession, I won’t be shocked if protectionism once again becomes popular among the right-wing populist types who still refer to “Red China.”

(Thanks to CD)

10:29 pm on November 24, 2008