“The European Union warned the U.S. yesterday against plunging the world into depression by adopting a planned “Buy American” policy, intensifying fears of a trade war, the Times of London reported.”
This from a recent article on Fox News.
I’m a little concerned that the Democrat led Congress even considered this, since it’s one of the major causes for the Great Depression of the 1930′s!
Back then, it took the form of The Smoot – Hawley Tariff Act, but the idea is the same: protectionism.
“The plan generally prohibits the purchase of foreign iron and steel for any stimulus-funded infrastructure project with the goal being to boost the U.S. iron and steel industries, which have been pummeled by the current recession.”
Protectionism sounds great. I mean, who doesn’t want to create and protect American jobs by having Americans buy goods and services from other Americans? The problem is that it excludes the rest of the world, and they tend to stop buying American products in return. The result is a net loss of consumers, which translates into a loss of profits and ultimately, a loss of American Jobs.
Protectionism is a lousy idea in the best of times, but in the current recession it would be nightmarish.
I may have to revise my beliefs on the chances of another Great Depression, if our leaders don’t start getting a clue about things…
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