One thing that economist stress is the fact that trade is good. Most economists would agree with the assertion that protectionist policies deepened the Great Depression. This is in part excusable as politicians catered to the initial drop in industry by ‘protecting’ them with tariffs. We fast forward to today and assume that our politicians take the important lessons we learned from the Great Depression and abandon ‘protectionist’ policy for short political gains. It does not always work out that way.
The latest example of this is in the tire industry. Obama decides to place tariffs on tires imported from China. Political opinions are that he is paying back some union support during the election (not to pick on Obama, as I recall an extremely similar action by Bush when he got into the office by placing tariffs on steal). The next step will be China’s retaliatory tariffs. The end result: reduced trade… which to an economists is a sad event.
Subscribe to:
Post Comments (Atom)
considering that almost everything we have has been made in china. i think that if trade with china did decrease there would be more jobs here and there would be more production. it could make the price rise of the products tho because it was so cheep to have them made in china.
ReplyDeleteAlthough the tariffs may be bad in the long run, maybe right now Obama is trying to get the economy going in some way and temporarily this will help.I think the price of tariffs going up in China is a steep price to pay, so i do not know the right answer. Keeping money moving and trade going is the most important thing at the moment, and hopefully people will keep spending and buying until everyone gains more confidence in the economy.
ReplyDeleteasia
ReplyDeleteScared as hell of working the same job for thirty years, its as if you stole the words right from my mouth. I read in Time magazine that our generation gauges success based on accomplishing our goals rather than landing that job with the cushy office chair and 401 K plan.
ReplyDeleteThere would be jobs created for the American people, during a time when the economy is suffering and there are so many people unemployed.I feel that decreasing trade with China would lead to more products being produced in the US.
ReplyDeleteSince China is said to have a reputation for an intelligent people, I wouldn't burn those bridges. It's well known that international trade is in some way a vertebrae of the US economy's spine. (As well as the political and social spine.) Therefore, Obama didn't make an advantageous move for our country.
ReplyDeleteBest idea that I've heard in a while! Although it is a lot cheaper to trade with China for many of our products, it would be a better idea to produce these items here in America. These new markets will increase job opportunities and also increase the flow of of our own economy. Lets make sure that the American people are taken care of before we go on to deal with other countries. Great idea Obama, lets create our own products to increasde our wealth.
ReplyDeleteRobert Fitzsimmons