Trade Wars Brewing In Economic Malaise
Ordered by Congress to "buy American" when spending money from the $787 billion stimulus package, the town of Peru, Ind., stunned its Canadian supplier by rejecting sewage pumps made outside of Toronto. After a Navy official spotted Canadian pipe fittings in a construction project at Camp Pendleton, Calif., they were hauled out of the ground and replaced with American versions. In recent weeks, other Canadian manufacturers doing business with U.S. state and local governments say they have been besieged with requests to sign affidavits pledging that they will only supply materials made in the USA.Dear Leader's "stimulus" bill and it's "Buy American" provisions are proving to be economic poison--American economic poison made in America for the American economy."You need to tell me how inhibiting business between two companies located one mile apart is going to save American jobs," said Bob Miller, Duferco Farrell's executive vice president. "I've got 600 United Steel Workers out there who are going to lose their jobs because of this. And you tell me this is good for America?"
Protectionism didn't work in 1930, and it's not likely to work now. As one steel mill is already finding out, this neither creates nor saves jobs, but destroys them.
Job destruction: what Dear Leader hath wrought.