Protectionism

"All politics is local"

A popular phrase usually uttered to explain the short-sighted outlook of politicians, the reality of that simple saying has become blatantly clear in recent weeks and it scares me.

Globalization and balanced budgets be damned, protectionist issues and Keynesian economics have taken over the world. America's proposed Buy America clause along with Brazil's newly implemented tariffs and Europe's dairy subsidy seems to only be the beginning of new protectionist tactics to preserve jobs within nations. Of course, every economist in the world sees the harm in this, it is widely accepted that the tariffs implemented during the Great Depression helped in worsening the situation. Yet...what are we seeing here? It's like watching a car crash in front of you in slow motion and you can't apply the brakes, you know that this will end badly but you can't do a thing about it. It is incredibly narrow minded to believe that other nations won't retaliate with their own tariffs or clauses if a major importer/exporter does so first, at the same time it is ridiculous for other nations to retaliate, because that would only make it worse. All we're seeing is politicians trying to score points for their own constituents, they are trying to show that they are doing everything they can to save their jobs and guarantee them a future. All they are doing though is saving a select few jobs and risking a slew of others, but it's easier to blame others for the loss of those jobs right? How can you blame the guy who saved the steel making industry for the job loss of the farmer or software engineer?

I sincerely hope that the Americans revisit there steel and iron clause and especially back away from the proposed "manufactured goods" extension the senate is flogging. Globalization and free trade has built, sustained and helped millions attain wealth, to abandon it when the economy needs it the most is self-centered and ignorant of basic economic principles.