Smoot Hawley Act

[Postul8]

It is almost a reflex of the Left that economic prosperity and growth does not come from hard work and economic production but rather from government spending or manipulation of markets (they always have the government cart before the economic horse) but there is no way to tax your way out of a global downturn.

Horse Patooties!

[Postul8]

But raising tariffs in a global economic down turn is a very bad idea for everyone.

and it took you two full pages to recognise the blindingly obvious? Thank the powers you have no input to economic management Frogwart

[Leftofcentresalterego]

But raising tariffs during an economic downturn is a very bad idea for everyone

Logically then, slashing protections too far and in the wrong places during the good times is also a bad idea since vital industries and jobs which may need some measure of protection to survive a downturn cannot recieve it without some backtracking of what has already been done.

We should (a) accept that the economic cycle will probably never be escaped from and (b) we should be looking a minimum of a full cycle down the track, probably longer in deciding whether or not something can survive unaided and if not, can we get by without it in the long term?

[JW Frogen]

But raising tariffs during an economic downturn is a very bad idea for everyone

Logically then, slashing protections too far and in the wrong places during the good times is also a bad idea since vital industries and jobs .

Yes, as I have stated, OH I don't know, about ONE BILLION TIMES NOW! *Said in Adam Sandler accent.*

[Leftofcentresalterego]

Oh thank God you agree Frogen, I was starting to worry when you just kept repeating that tariff rises in a downturn are a bad idea

[JW Frogen]

Now let me hear you say it, or better yet learn it. Tarrifs in downturns are bad.

Speaking of which the historian Nial Fergeson makes an interesting case the US should just default on it's foreign debt, that in reality a debter this large has more power than the creditors, just the threat can get China and the oil exporters dancing to Yankee dollar dandie.

I don't have the time to elaberate, but he states Obama is trying to cure a debt problem with more debt.

[Jovial Monk]

But non-tariff barriers "Buy American" enshrined in contracts are proliferating.

[Leftofcentresalterego]

Now let me hear you say it or better yet learn it - they were rolled back so far in protracted good times that protectionism in one form or another is probably inevitable. Unless everything takes a sudden turn for the better in the near future.

The argument that foreign competitors must not be disadvantaged through the protection of local industries and jobs will not cut any ice with the public as unemployment swells and families lose their homes

Just thought that bore repeating since the motivation behind it seems to elude you. The US is heamorraging jobs and the welfare bill is blowing out, even for a country with such a poor social safety net for a modern country. I am not the least bit surprised by the trend that JM is talking about.

Perhaps you could give me your home address Frogen and I will foward it on to the Pacific brands workers, so they can all come round to your place so you can tell them all about "letting the cycle work itself out"

[JW Frogen]

Anyone who reads what I write will know that I think tarffifs in an economic down turn are a bad idea, as is Obama.

So don't blame me for his policy.

[Leftofcentresalterego]

Yeah, I kinda suspected that might be the case when you said "tariffs during an economic downturn are a very bad idea" at the end of every post. Just wondered if you realized that there were reasons for arriving at that situation and bloody good reasons for national governments often feeling compelled to do something about it.

Would the market sort all this out if it were left to it's own devices with no stimulus packages, gaurantees, partial or full nationalizations and no protections of any kind? Yes it would - in a sense. The market has no social conscience. It might find equalibrium at a level of unemployment so high as to cause mass poverty, hardship and shithouse economic conditions that could take many years to escape from. There are no automatic forces gauranteeing a swift return to full employment. Hence, governments must step into the breach in times such as these.