During the general election, Obama's anti-free trade and protectionist rhetoric disappeared and seemed to approach a sense of rationality that has evaded most politicians in my memory. I still disagreed with much of what he said, but he didn't sound like an idiot while saying so. I became less concerned as his advisers seemed to be free traders as often happens from Chicago-school economists. I worried even less when I heard that his economic advisers told Canadian leaders that his anti-NAFTA talk was just election rhetoric and would not actually represent policy changes. (I worried more about his honesty, but that's a different matter).
But now, push comes to shove and with the soon to come stimulus bill, key lobbies and politicians are pushing their own agendas and many are adding patently stupid failed policies that have been tried in the past and have been met with failure. Policies that any respectable academic economist would tell you is a ticket for higher costs, fewer jobs, and disaster abroad. (Why is it that the left in this country loves to be the party of science in reference to evolution, religion & personhood, but with economics, they would rather listen to "Joe the Auto-worker" than nobel prize winners?)
The timesonline.uk reports... Link here
Now, prodded by America's mighty steel lobby, a key congressional committee has voted, 55-0, to attach a still more rigorous “Buy America” clause to President Obama's stimulus package. It bars federal funding of any public projects “unless all of the iron and steel used is produced in the United States”. The clause could be extended to asphalt, cement, heavy machinery, you name it. US dollars, the committee intones, must be used to create “American jobs in America, not Chinese jobs in China”.I believe that it is time for our president to live up to his general election promises (and break his primary promises) about supporting free trade and avoiding protectionist policies. It is in the midst of economic hardship that we will see what he truly believes about economic policy. I fear that the "Buy America" (and therefore "screw everybody else") policy is what he truly believes and past mistakes will be repeated.
