More Evidence That Protectionists Are All Wet
By Pejman Yousefzadeh Posted in Economic Ignorance | Economy | Free Trade | Protectionism — Comments (1) / Email this page » / Leave a comment »
Think that the current economic conditions are bad? Just remember that they could have been worse and that there are plenty of people who appear to be bound and determined to make them worse.
In other words, read this and note the following passage:
. . . Over the past two quarters, the US has recorded positive growth at an annual rate of 0.8 per cent (in spite of the pronouncements of many observers that recession had already set in). Its "net exports of goods and services", the gross domestic product equivalent of the current account balance, have strengthened at an annual rate of almost 1 per cent of GDP during that period. Hence the totality of recent US expansion has been provided by the strengthening of its trade balance. Domestic demand has been falling but the US has been saved from recession by the rest of the world.
And despite this, there are people who have no problem making noises about wanting to curtail free trade. One of them happens to be running for President of the United States.