Capital Commerce

Thanks, Globalization!

By James Pethokoukis

Posted: March 3, 2008

One more reason why protectionism is a bad idea (from Action Economics):

A more dour outlook for the U.S. and Europe was the driver behind the IMF recently cutting its projection for world growth this year, to 4.1% from 4.4%, which would mark a slowing from the 4.9% growth rate achieved in 2007. Indeed, the IMF is warning that economic activity could slow even further. But, keep in mind that even 4.1% growth is solid, as it exceeds the 3.7% average of the past quarter century. According to the IMF, emerging markets, including China, India and Brazil, will expand 6.9%, paced by China at 10% (matching the Action Economics growth forecast). This could still translate to sufficient global export demand to enable the U.S., Europe and Japan to avoid recession.

Airbus $40B Tanker Coontract

Let’s hear it for openness! Hurray for Globalism! The EADS’ air tanker contract win on Friday ensures that our USAF will soon be flying French Airbus. That’s a $35-100 Billion deal and a loss of ~9000 American jobs for Boeing. (Don’t try to say the EADS front, Northrup Grumman will get equal American jobs). What are we thinking? Why not Aeroflot? Or better yet - the Chinese — we might have gotten Boeing planes made with cheap Chinese labor and helped reduce their unemployment!

George of CO @ Mar 03, 2008 14:17:49 PM

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Capital Commerce

Capital Commerce

U.S. News business reporter Matthew Bandyk examines the issues, people, and debates that shape the nexus of political and economic life in the nation's capital.

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