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Protectionism Could Engender Chinese Retaliation

Imposing a tariff on imports will adversely affect the American economy

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Smoot-Hawley. Smoot-Hawley. Anyone? Anyone?

Didn't that set off a tariff war that ultimately made things worse for the US economy 80 years ago? Didn't it increase our unemployment rate by a couple of percentage points? Didn't we learn anything? Businesses fleeing overseas are probably reacting as much to government regulation and high tax rates as they are to lower production cost. We should start addressing those issues before contemplating tariffs.

Lon Williams of CA 6:07PM October 14, 2011

I do hereby warn you, protectionists, that if President Roosevelt insists on tariffs, Germany will not be able to recover enough to pay back its debts from the Great War. Now this new chancellor is precisely the motivated and industrious leadership a modern economy needs and our exports of manufactures like IBM's census systems means good American jobs. What they do with their purchases is none of our business...oh wait a sec...wrong century

Shawn of NY 2:46PM October 14, 2011

Ah warn ye Yankee protectionist interlopers, do not dare interfere with the affairs of Cotton power and Britain, or ye shall suffer the wrath of Dixie....oh wait...wrong century.

Shawn of NY 2:32PM October 14, 2011

Imposing tariffs intensified the depth and breadth of the Great Depression. We don't need such short-term thinking in 2011; we need long-term solutions for the 21st century. I worked on Chinese Affairs at the State Department during the Reagan Administration. I fully expect there will be unintended consequences unfavorable to the United States, if we continue down this path. The difference now is that our economy is in a more weakened state, it is not as dominant among the global economic powers as it once was, and we have a lack of leadership in the White House and Washington that portends a dire economic outlook should we attempt to follow this course of action. There are more effective ways to resolve our trade issues, but it requires real leadership. It may have to wait until after 2012!

Daria Novak, (Candidate US Congress, CT-2) of CT 12:37PM October 14, 2011

It is not irrelevant that the bill would suppress something (Chinese currency manipulation) that is helping America.

What if China so manupulated its currency or subsidized its manufactures that Chinese companies could sell anything to Americans for a penny each. Does anyone think America would really be poorer as those free, but valuable goods started pouring into the country?

Yes, some Americans would have to go into different lines of work, but that cost would pail in comparison to the benefit of all those essentially free goods flowing into the country.

The more China manipulates and subsidies, the better for countries who trade with her.

Hobson of TX 9:27AM October 14, 2011

Why didn't Chris Chocola, President of the Club for Growth, write a defense of the communist Chinese government and its protectionist economic policies?

Oh that's right, he sponsored a bill called the CHINA Act in 2005 when he was a member of Congress to impose tariffs on China for its currency manipulation. I guess that wouldn't look too good for your organization, huh?

Or maybe he's off filling the coffers with donations from companies that operate in China and want to see nothing done on currency manipulation.

Shame on the Club for Growth. And shame on members of Congress for being their puppet.

Scott of PA 4:10PM October 13, 2011

China's currency peg is a massive, protectionist tax on U.S. exports. The result has been a serious hit to our manufacturing base, with millions of lost jobs. The ripple effect from that is why we're in such a bad mess now.

China desperately needs to sell to to the U.S. market, and you ignore the leverage we have.

You also conveniently overlook how massively protectionist China is. It's inexcusable to defend them.

Steven Capozzola of NY 2:34PM October 13, 2011

The article is correct in that the US economy could contract if we start taxing goods from China. HOWEVER, taxing goods from China would change the economics of business and make it more advantageous to put manufacturing facilities in the USA.

Therefore we could end up in a situation where the economy shrinks but we increase jobs in the USA!!!

Politicians and Wall Street executives don't like to talk about that because a smaller economy would mean less tax revenue and less corporate profits.

lobna hoarst of PA 12:17PM October 13, 2011