Hot Air’s Ed Morrissey jumped on this story last night, and this morning I am going to take a swing at it.
Four years ago, President George W. Bush came to Canada to smooth over relations. His visit to Alberta was specifically planned to help reopen the border for Canadian Beef, a product which his presidential opponent, John Kerry, helped ban in 2003. It was because of Bush’s desire to better relations with Canada that this came to be. The former Canada Prime Minister Jean Chretien had done his best to sour relations with the USA, and while Prime Minister Paul Martin had promised to work closer with our southern neighbour, his lack of support for the Iraq War, as well as other American endeavors, hadn’t sent the right message to Washington. I am thankful that President Bush was willing to shake off the criticism and do what was best for both countries. The problem is, this isn’t what we are seeing now…
The very idea of “Buy American” offends me. For someone always claiming to be a “world citizen”, Barack Obama has told the international community that America doesn’t care about their problems. This is just another stupid economic decision from a man who obviously doesn’t understand what damage he is doing, that or he enjoys running the American economy into the ground. With “Buy American”, one really has to wonder about the latter. As the Washington Post reported, the “Buy American” Plan is nearly an outright ban Steel and Iron imports…
The stimulus bill passed by the House last night contains a controversial provision that would mostly bar foreign steel and iron from the infrastructure projects laid out by the $819 billion economic package.
A Senate version, yet to be acted upon, goes further, requiring, with few exceptions, that all stimulus-funded projects use only American-made equipment and goods.
Proponents of expanding the “Buy American” provisions enacted during the Great Depression, including steel and iron manufacturers and labor unions, argue that it is the only way to ensure that the stimulus creates jobs at home and not overseas.
Opponents, including some of the biggest blue-chip names in American industry, say it amounts to a declaration of war against free trade. That, they say, could spark retaliation from abroad against U.S. companies and exacerbate the global financial crisis.
After bailing out the auto industry, after giving them a helping hand to get them back on their feet, he shoots them in the foot. You drive up the price of materials Obama, you drive up their costs, forcing them back into bankruptcy. Have you lost your mind? Morrissey was right to point out that this reeks of Smoot-Hawley, something even Bill Lane, the government affairs director for Caterpillar in Washington, pointed at…
“Any student of history will tell you that one of the most significant mistakes of the 1930s is when the U.S. embraced protectionism,” Lane said. “It had a cascading effect that ground world trade almost to a halt, and turned a one-year recession into the Great Depression.”
I don’t care what White House spokeswoman Jen Psaki says, this WILL kill jobs. The dependence of many American companies, like Caterpillar, on foreign buyers will bite back once other countries start enacting protectionist policy. This is basic second year economics, that running a trade deficit during time like this, to allow for the continued movement of traded goods, is important to sustain even low levels of economic growth. By telling your trading partners that you refuse to help them through this troubling time, you will in turn have them close their borders to a variety of goods you are hoping to export. The trade deficit then expands, companies can’t maintain high levels of production if their goods can’t be sold overseas, and then you have MASSIVE LAY OFFS. Explain to me how any of this helps America?
I guess it is no surprise to see this being slipped into the “stimulus” package. First we had funds for ACORN, passed off as a “Community Development Fund” (how stupid do you think we are?), and now this. One only has to glance at Michelle Malkin’s website to see what conservative bloggers and commentators have dug up on this nearly a trillion dollars in federal spending. Explain to me how hundreds of millions of tax payer dollars for “STD prevention” and abortions here and overseas are going to generate economic growth Obama? I must have skipped that class, especially since Nancy Pelosi was doing her best to explain how fiscally sound that plan was just the other day on CBS. My head is starting to hurt listening to this lunacy…
It is obvious that we can forget NAFTA if this “Buy American” plan kicks in. No use of having a free trade pack if their will be no free trade (there goes Clinton’s legacy). This isn’t about “being fair” Byron L. Dorgan, this is about being smart. By crippling trade, you expand the trade deficit. Instead of fixing a situation which America was forced into through the protectionist policies of a few other countries, mainly China and Japan (at least in the 1990s), you have made it worse. For people who have claimed that they are the ones who will fix the country’s economic problems, it is only the second week of “the Age of Obama” and you are threatening to bring us into complete market failure. Doesn’t it worry you that these plans were tried before with horrific consequences? Do you even care?
Of course not… While Americans struggle to put food on the table, you eat wagyu steak… Something that would never have happened under President Bush… Pathetic…
UPDATE: Prime Minister Harper gets ready to bully Barack Obama into dropping this “Buy American” plan when he visits February 19th. Seems it wasn’t just this Canadian who realized how stupid the “The One” was being when he proposed this idea of rabid protectionism. This isn’t all though…
Ed Morrissey at Hot Air also found that while Obama wants to throw world economies into turmoil through this “tried and failed” stupidity, he also wants to cut back on military spending… You know, as he intends to step up the War in Afghanistan? It is no surprise that this twit confused a window for a door at the White House… Where are all these people defending how brilliant he is? These are all acts of extreme stupidity…
The second week just ended and it looks like America is bracing itself for a financial “train wreck” with “Conductor” Obama confused at the controls… Jimmy Carter would be proud…
UPDATE: My friend Kirk took a swing at this on his new blog, give it a look. I will have to say, even the idiot who commented on this page could understand this explanation… Don’t need to fake your knowledge with both Kirk and I explain it to you now…
UPDATE: More for Kirk, this time a quote from Richard Fisher…
“Protectionism is the crack cocaine of economics… It provides an immediate high that leads to economic death. We cannot afford to go down that route”
Good catch Kirk! I don’t think I could find anything wrong with that statement.

