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Protectionism Promotion

There are already so many good reasons Congress should deny the Big Three a bailout, but the cost it will inflict on America’s free trade leadership could be the most dire. The Wall Street Journal’s Matt Slaughter writes:

Will a U.S.-government bailout go ignored by policy makers abroad?

No. A bailout will likely entrench and expand protectionist practices across the globe, and thus erode the foreign sales and competitiveness of U.S. multinationals. And that would reduce these companies’ U.S. employment, R&D and related activities. That would be bad for America.

Rising trade barriers would also hurt the Big Three, all of which are multinational corporations that depend on foreign markets. In 2007, GM produced more motor vehicles outside North America than in — 5.02 million, or 54% of its world-wide total. That year in China, the world’s second-largest and fastest-growing automobile market by volume, GM continued to lead in market share and became the first global auto maker to surpass the one-million mark in single-year unit sales in China.

  • Author: Conn Carroll
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November 20, 2008 » Blog Archive » Protectionism Promotion » The Foundry writes:

[…] A bailout will likely entrench and expand protectionist practices across the globe, and thus erode the foreign sales and competitiveness of U.S. multinationals. And that would reduce these companies’ U.S Read more […]

November 20, 2008 Jeremiah Films writes:

US Protectionism Promotion…

… Wall Street Journal’s Matt Slaughter writes ……

November 20, 2008 Patrick O'lone Cadiz Ky. writes:

Why is it That the Democrats in Congress are able to stop domestic drilling without an uproar from the public greater than what we hear. I have mentioned in the past in blogs of Hannity,limbaugh and other conservatives that sending a big portion of our wealth out of our economy is not the only thing detrimental to our well being.We are exposing ourselves to the danger of piracy ( which is now happening to Saudi Arabia) Greater shipping costs and in the event of full blown war, enemy submarines. I understand that China is currently buliding submarines at a fast pace. Why any one in their right mind would want to keep a major source of energy across an ocean is beyond me. The determination of the Democrats to do so raises suspicions in my mind.

November 20, 2008 Mark, New Mexico writes:

Almost all countries except the US have trade barriers. To sell there you must manufacture there.

November 21, 2008 Wayne Dougan writes:

News flash. China and India are not buying any of our stuff. Instead they are just putting us into debt. Yeah, they may buy our businesses, but our workers aren’t getting a piece of that action either. In the end, our workers lose their jobs but our multi-nationals get rich. Let’s face it, until our workers real wage gets close to those in the 3rd world, jobs will be outsourced. You can’t dispute this.

November 21, 2008 Spiritof76, New Hampshire writes:

Mr.Wayne Dougan says that China and India are putting us into debt! That is like saying that Colombia drug cartel is making us drug addicts.
This is part of the problem. Until we recognize that we are living beyond our means and borrowing from countries such as China (they hold about $500Billion of our treasury notes)to finance it and our government is printing money at a rate that is approaching the speed of light, we will not get ahead of our current financial mess. Our overall unfunded liability is close to $50Trillion!!! We have a hard debt of over $10Trillion. We just added $1Trillion of it just in 2008.
We have an energy policy that is bankrupt. We have shut down coal, nuclear, oil and gas even though by judicious employment of all those resources that we have we can virtually phase out the energy outsourcing. Think of all the American capital that can be put to use creating high paying industrial jobs with energy independence alone. The alternative energy is not a viable option as we need to invent a very large scale energy storage mechanism.
Man-made global warming hoax that is going to usher in the cap and trade will rob a lot more American jobs. The surface temperature has been cooling since 2000 and has wiped out all the increase which was used to buttress the warming argument. Some of the scientists are now saying that we are facing a severe global cooling! It is only mid-November and many areas of the northern latitudes of the US have already mid-winter like below freezing high temperatures. London had experienced snow fall in late October. They say it hasn’t happened in hundred years.
Government must get out of our way so that we can solve our own problems.

November 30, 2008 Wayne Dougan writes:

Spirit of 76… the American public does not have a say in the matter. It is nearly impossible to buy American products these days. The consumer does not have visibility to whether we have a trade surpluss or trade deficit with another country. This is where the government needs to step in and establish a trade policy that doesn’t bankrupt America.

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