| The title may make the reader shake head | | | | utter words like these, it's the equivalent of John |
| immediately because a kind word is not often found | | | | McCain saying that perhaps United States naval |
| with "protectionism" in the same sentence these | | | | forces should be cut down in size. It's the equivalent |
| days. Although United States industry was essentially | | | | of the Pope saying that perhaps some birth control |
| built on protectionist tariffs (until 16th amendment of | | | | should be introduced into church doctrine to save |
| 1913 allowed federal government to start functioning | | | | lives. Some of American elites (mostly in the |
| via income tax instead of high tariffs on imports) the | | | | nationalist democratic wing of the American oligarchy) |
| last 30 years involved continuous top down push of | | | | have taken notice of this. |
| free trade propaganda. It is thus understandable that | | | | At this point, rapid and badly needed protectionist |
| protectionism brings a negative psychological reaction | | | | measures may shock United States into falling further |
| even if there aren't ready made arguments to explain | | | | into the economic abyss. Chinese retaliation and |
| why. | | | | corresponding rise in cost of imports will not help |
| If one looks at how world's key societies rapidly | | | | United States get further away from risk of a |
| became wealthy and powerful (in the last 300 years), | | | | hyperinflationary scenario. It would thus make sense |
| protectionism was always the dominating factor to | | | | for Barack Obama to sneak in defensive nationalist |
| help out native industry. France and England in | | | | measures gradually. His recent decision to to impose |
| 18th-19th century, United States, Japan, and | | | | a tariff on Chinese tires may be beginning of such an |
| Germany in 19th-20th century, and China in 20th are | | | | attempt. Tariffs on foreign made car batteries and |
| just some of the success stories. | | | | materials/parts connected to industries decided to |
| In fairness, we can't overlook a number of small | | | | be"strategic" ( like green energy ) may follow. The |
| (population and physical size) states that are | | | | way protectionism is introduced by the current |
| positioned to thrive in free trade by their geography | | | | administration will be vital for any chances of |
| (ocean reliant ports of Singapore, Hong Kong, | | | | American rebirth within a generation. |
| Netherlands and Switzerland with its base in ancient | | | | When pound sterling began declining as reserve |
| Alps trading routes) which often also function as | | | | currency in the 50s and 60s along with British |
| financial hubs. As far as large historically active players | | | | industry, London decided to cut off its foreign |
| on the world stage, all became what they are due to | | | | colonies for purposes of national regeneration and |
| basics like tariffs. | | | | survival. United States needs to begin a similar |
| One may begin to argue that protectionism of old | | | | process of disengagement from the world to match |
| was different in that it was an ideological pillar of now | | | | decline of the dollar as reserve. Since British Empire |
| "discredited" mercantilism. However, mercantilism | | | | and United States were both in strong imperial |
| never went away and still works wonderfully in more | | | | position at the time of their full commitment to |
| advanced forms in China and Japan (and even in | | | | pushing free trade on the world, they found it easy |
| Western Europe to a certain degree). Certainly we | | | | to combine lack of protectionism with parasitic |
| can understand the desire of a state to lower | | | | existence of unproductive consumption through the |
| protectionist measures once its industries have | | | | use of reserve currencies. In that sense, free trade |
| sufficiently grown and benefited from them. We | | | | "worked" for them for a while even as it |
| have seen England begin to push free trade | | | | impoverished small countries that were pushed to |
| propaganda in 19th century after its factories | | | | engage in it. This period is now coming to an end and |
| became the best in the world. Same pattern | | | | a new model has to be formulated. |
| continued with United States (which had some of the | | | | Some Europeans, like Emmanuel Todd, propose |
| most advanced and some of the only factories left | | | | "protectionism on a continental scale" (the article is in |
| standing) after World War 2. | | | | French but is very readable with google translate). It |
| One would think that United States would learn a | | | | may be argued that China already practices that to a |
| lesson from slow decline of British Empire (late 19th | | | | degree in that it has the population and economy |
| century to 1960s) due to transition from mercantile | | | | large enough for import restrictions without being |
| protectionism to free trade and reserve currency | | | | crushed and impoverished. European Union definitely |
| imperialism. Surely it would have affirmed that lesson | | | | has what it takes for such an action especially if it |
| from the rapid rebirth (after the initial breathtaking | | | | coordinates with some nearby states like Russia. |
| success of their mercantile industrial expansion in late | | | | North American Union and South American Union may |
| 19th century) of Japanese and German societies in | | | | one day be such entities to effectively fight off |
| the 1950s ad 1960s. It was crystal clear what works | | | | Asian and European imports. Trade cannot be |
| for national enrichment, job creation, national self | | | | decoupled from production and effective production |
| respect, technological progress, and higher quality of | | | | needs to be able to compete between itself rather |
| life for the average citizen. | | | | than just exist in one part of the world where it's |
| It can be summarized as follows: | | | | cheapest. |
| 1) tariffs work, keeping out foreign competition and | | | | Let's hope some common sense prevails and more |
| their advanced imports such as cars works, trade | | | | people question official orthodoxy of global unification |
| barriers work, high import duties work, allowing | | | | by only one narrow "inevitable" route (the optimism |
| foreign companies to set up shop only in partnership | | | | of Thomas Friedman is now laughable in hindsight). |
| with native companies/unions works | | | | Real globalization seems a lot more within reach when |
| 2) free trade doesn't work as well as trade barriers | | | | self enriching, wealth producing, continent wide |
| historically when it comes to rapid national | | | | economic unions do business with one another in a |
| development and can even fatally drain a nation | | | | more equal way. |
| For a number of years before the current economic | | | | Lets remember what the 25th president of the |
| depression hit, many old time free trade warriors like | | | | United States William McKinley said about free trade |
| Nobel prize winning neoclassical economist Paul | | | | at the end of 19th century when he affirmed a |
| Samuelson began to realize that the global reallocation | | | | commonly held belief among American elites and |
| of industry can produce a domestic win-loss scenario | | | | citizens, |
| for United States (especially in its trade contact with | | | | "Under free trade the trader is the master and the |
| protectionist China) where the loss is so great as to | | | | producer the slave. Protection is but the law of |
| be socially catastrophic. Samuelson used to have | | | | nature, the law of self-preservation, of |
| absolute faith in comparative advantage but his most | | | | self-development, of securing the highest and best |
| recent major paper argues that free trade theory | | | | destiny of the race of man. [It is said] that protection |
| needs to be reformed for the modern world if it is | | | | is immoral.... Why, if protection builds up and elevates |
| to survive. Samuelson is too old (94) to meaningfully | | | | 63,000,000 [the U.S. population] of people, the |
| contribute at this point but major reallocation of his | | | | influence of those 63,000,000 of people elevates the |
| thought at this age shows the seriousness of free | | | | rest of the world. We cannot take a step in the |
| trade problems. One translated Der Spiegel interview | | | | pathway of progress without benefitting mankind |
| has him mouth the thoughts familiar to anti-WTO | | | | everywhere. Well, they say, 'Buy where you can buy |
| protesters: that rising economic inequality within | | | | the cheapest'.... Of course, that applies to labor as to |
| "globalizing" nation is a type of win-loss scenario that | | | | everything else. Let me give you a maxim that is a |
| is unacceptable and stupid to be allowed to happen. | | | | thousand times better than that, and it is the |
| Another crusty dinosaur, Alan Greenspan, has | | | | protection maxim: 'Buy where you can pay the |
| mentioned a few years ago how rising inequality can | | | | easiest.' And that spot of earth is where labor wins |
| threaten democratic functioning of United States. | | | | its highest rewards. |
| When free marketeers and capitalist internationalists | | | | |