Economics and the mid-life crisis have much in common: Both dwell on foregone opportunities

C'est la vie; c'est la guerre; c'est la pomme de terre . . . . . . . . . . . . . email: jpalmer at uwo dot ca

. . . . . . . . . . .Richard Posner should be awarded the next Nobel Prize in Economics . . . . . . . . . . . .

Wednesday, April 06, 2005

Growing U.S. Protectionism

Not only has the US refused to abide by WTO decisions that the US is in violation of its trade agreements with its anti-dumping shinanigans, but now the US is imposing protective tariffs against Chinese textiles. This is beginning to border on the alarming.

The US declared a Trade War on Chinese textiles today. By initiating the safeguard action itself, instead of waiting for the US textile industry to file a complaint, punitive tariffs could be applied in as soon as five weeks, after a 30-day comment period.

China promptly responded by downgrading its delegation to the mid-April IMF and G7 meetings, substituting more junior ministers. In the understated world of diplomacy, this gesture is equivalent to an upraised middle finger, accompanied by dropped trou and bare butt.

The article goes on to warn about a recurrence of the problems engendered by the Smoot-Hawley Tariff that contributed to the contractions during the Great Depression. To see my similar concerns, click here.
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