Barack Obama's op-ed in newspapers today--running in 30 papers around the world, and only a handful in the US--doesn't say much that is new. But what is significant is what he doesn't say. Namely, there is little indication that Obama will embrace a protectionist stance in reaction to the recession. A Smoot-Hawley 2.0 seems highly unlikely (many economists believe that the Smoot-Hawley tariff turned a great recession into the Great Depression.)
While people in his party are talking about the importance of "buying American" only, Obama in this op-ed is actually emphasizing the benefits of exports:
A crisis in credit and confidence has swept across borders, with consequences for every corner of the world. We have learned that the success of the American economy is inextricably linked to the global economy. If people in other countries cannot spend, markets dry up—already we've seen the biggest drop in American exports in nearly four decades, which has led directly to American job losses. And if we continue to let financial institutions around the world act recklessly and irresponsibly, we will remain trapped in a cycle of bubble and bust. That is why the upcoming London Summit is directly relevant to our recovery at home.
For more on how exports can help small businesses specifically, click here and here.
Luther of IL @ Mar 25, 2009 03:28:49 AM