If the USA STOPPED buying foreign products except for oil?
- Thread starter Whoson1st
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Re: If the USA STOPPED buying foreign products except for oil?
Yeah, they had the same idea back in the 30's. Countries engaging in protectionist economic policies was one of the nails in the coffin known as the Great Depression.
It's a global economy.
Yeah, they had the same idea back in the 30's. Countries engaging in protectionist economic policies was one of the nails in the coffin known as the Great Depression.
It's a global economy.
Re: If the USA STOPPED buying foreign products except for oil?
In the 30's, countries around the world adopted protectionist tariffs -- Smoot-Hawley here in the States -- in an effort to stimulate domestic jobs and pull their economies out of the Depression.
Had the opposite effect. Global trade seized up, economies tanked further, and more people lost jobs to join the soup lines.
Understand that some folks just can't see it any other way. In another thread, someone referred to "joke" degrees like history. Thing is, if people don't know at least some history, they'll just keep repeating the same mistakes as the same basic situations present themselves.
The recent crash following the big easy credit bubble and parabolic housing market was as predictable -- maybe not as to specific timing but certainly as to eventuality -- as night following day. Same thing happened in the 20's leading into the Great Depression. The trick is to not repeat the policy mistakes of the 30's that made the global economic contraction worse. Post-bubble pain is a given, but the policy decisions made in the 30's present a textbook example of how not to respond to such a crisis.
It's an interdependent global economy these days, even moreso than then, and U.S. exports are a substantial part of our domestic economy. If people around the world -- in response to a protectionist move in the United States -- start buying only domestically, it would punch the US economy in the gut as our own exports dried up.
In the 30's, countries around the world adopted protectionist tariffs -- Smoot-Hawley here in the States -- in an effort to stimulate domestic jobs and pull their economies out of the Depression.
Had the opposite effect. Global trade seized up, economies tanked further, and more people lost jobs to join the soup lines.
Understand that some folks just can't see it any other way. In another thread, someone referred to "joke" degrees like history. Thing is, if people don't know at least some history, they'll just keep repeating the same mistakes as the same basic situations present themselves.
The recent crash following the big easy credit bubble and parabolic housing market was as predictable -- maybe not as to specific timing but certainly as to eventuality -- as night following day. Same thing happened in the 20's leading into the Great Depression. The trick is to not repeat the policy mistakes of the 30's that made the global economic contraction worse. Post-bubble pain is a given, but the policy decisions made in the 30's present a textbook example of how not to respond to such a crisis.
It's an interdependent global economy these days, even moreso than then, and U.S. exports are a substantial part of our domestic economy. If people around the world -- in response to a protectionist move in the United States -- start buying only domestically, it would punch the US economy in the gut as our own exports dried up.
Re: If the USA STOPPED buying foreign products except for oil?
I agree with Squarepants. Gotta look at the big picture. Short term buying only US products might help but long term would be a disaster. As for the economy, obviously losing our AAA credit rating hurt. Obama overwhelmed as David Glisan suggested. No wonder he focused on healthcare when he took office--he had no clue regarding economic concerns. I voted for Obama. Not gonna happen again.
I agree with Squarepants. Gotta look at the big picture. Short term buying only US products might help but long term would be a disaster. As for the economy, obviously losing our AAA credit rating hurt. Obama overwhelmed as David Glisan suggested. No wonder he focused on healthcare when he took office--he had no clue regarding economic concerns. I voted for Obama. Not gonna happen again.
Re: If the USA STOPPED buying foreign products except for oil?
Also, regarding the economy, disasters abroad like losing 30 servicemen including 22 navy seals, will always hurt the economy. Why did this tragedy have to happen? When Bin Laden was killed it should have sent up a red flag to be wary of retaliation. To put 22 seals together on a slow moving air transport at a low altitude over taliban occupied territory was a huge mistake and a tragedy waiting to happen. The generals who approved this operation should be held accountable.
Also, regarding the economy, disasters abroad like losing 30 servicemen including 22 navy seals, will always hurt the economy. Why did this tragedy have to happen? When Bin Laden was killed it should have sent up a red flag to be wary of retaliation. To put 22 seals together on a slow moving air transport at a low altitude over taliban occupied territory was a huge mistake and a tragedy waiting to happen. The generals who approved this operation should be held accountable.
Re: If the USA STOPPED buying foreign products except for oil?
Obama should be held accountable for "spiking the football". Prior to the Kenyan's nationwide victory tour, "Team Seal 6" didn't even officially exist.
How do you think Robert Gates feels right about now?
Obama should be held accountable for "spiking the football". Prior to the Kenyan's nationwide victory tour, "Team Seal 6" didn't even officially exist.
How do you think Robert Gates feels right about now?
Re: If the USA STOPPED buying foreign products except for oil?
If the US is ever to regain a strong manufacturing base, it needs to abolish the welfare state since entitlements are a drain on economic output. Radical Big Labor policies as well as draconian regulations and taxes (redistribution of wealth) have driven almost every manufactured product offshore. America didn't become the world's superpower because of "universal this" and universal that". Indeed, America's decline can be traced back to the "progressive era" and its Keynesian economic swindles revolving around the Fed.
If the US is ever to regain a strong manufacturing base, it needs to abolish the welfare state since entitlements are a drain on economic output. Radical Big Labor policies as well as draconian regulations and taxes (redistribution of wealth) have driven almost every manufactured product offshore. America didn't become the world's superpower because of "universal this" and universal that". Indeed, America's decline can be traced back to the "progressive era" and its Keynesian economic swindles revolving around the Fed.
Re: If the USA STOPPED buying foreign products except for oil?
Who, the answer to your question -- in your first post and your most recent one in ALL CAPS -- is laid out above, a couple of times.
I'm used to people not listening to what I'm saying. Basically no one listened on the way up when I was pointing out what happens when massive credit bubbles are created. They eventually collapse and you get what we have now.
Your original question was what would happen if "the USA stopped buying foreign products except for oil?" The answer -- again -- is that if "the USA" took such a protectionist tack, the other countries around the world would follow suit, global trade would collapse, and the substantial export portion of the UNITED STATES economy would tank and drag us into an economic contraction that would make the Great Depression seem like a walk in the park.
You might also want to consider what would happen if our foreign creditors -- including especially the Chinese parking proceeds from their trade surplus -- stopped buying Treasuries. Reduced demand for our debt with an associated spike in interest rates would not be a good thing.
When I wrote an undergrad paper on the Depression at LSU, I studied the contemporaneous economic records from the 20's and 30's as well as contemporaneous news accounts and op eds. Reading through the periodicals of the day, you see the same sentiment that you are voicing now, you then see it acted upon, and you then see global trade collapse and the UNITED STATES economy tank even further -- putting UNITED STATES workers out of work.
Some of the biggest lessons that I learned back then are that (a) people and governments do really, really dumb things; and (b) consensus is the poorest validator of truth or correctness that there is. Consensus is just group opinion, and human opinion is the most fallible thing in the universe.
Especially when the lessons of the past are ignored.
Who, the answer to your question -- in your first post and your most recent one in ALL CAPS -- is laid out above, a couple of times.
I'm used to people not listening to what I'm saying. Basically no one listened on the way up when I was pointing out what happens when massive credit bubbles are created. They eventually collapse and you get what we have now.
Your original question was what would happen if "the USA stopped buying foreign products except for oil?" The answer -- again -- is that if "the USA" took such a protectionist tack, the other countries around the world would follow suit, global trade would collapse, and the substantial export portion of the UNITED STATES economy would tank and drag us into an economic contraction that would make the Great Depression seem like a walk in the park.
You might also want to consider what would happen if our foreign creditors -- including especially the Chinese parking proceeds from their trade surplus -- stopped buying Treasuries. Reduced demand for our debt with an associated spike in interest rates would not be a good thing.
When I wrote an undergrad paper on the Depression at LSU, I studied the contemporaneous economic records from the 20's and 30's as well as contemporaneous news accounts and op eds. Reading through the periodicals of the day, you see the same sentiment that you are voicing now, you then see it acted upon, and you then see global trade collapse and the UNITED STATES economy tank even further -- putting UNITED STATES workers out of work.
Some of the biggest lessons that I learned back then are that (a) people and governments do really, really dumb things; and (b) consensus is the poorest validator of truth or correctness that there is. Consensus is just group opinion, and human opinion is the most fallible thing in the universe.
Especially when the lessons of the past are ignored.