Sunday, September 13, 2009
Is A Trade War With China Wise?
President Barack Hussein Obama ignited a trade war with China this past week after his administration decided to impose heavy tariffs on tires manufactured in China to assuage the union representing U.S. steelworkers. None of the U.S. tire companies publicly supported the steelworkers' complaint. The Chinese are angry and contemplating retaliatory acts against the U.S. Is it wise to start a trade war with the country the American government relies upon to purchase our government-issued bonds that allow the U.S. government to spend more than it takes in from the American people in taxes? Some are already beginning to suggest this has shades of Smoot-Hawley written all over it, referring to the 1930 protectionist law that some historians blame for causing the Great Depression.