U.S. and China urge against protectionism

The Congressional bailout of the American auto industry may be at odds with longstanding U.S. foreign policy. The U.S. has urged the world to resist protectionism. But now that the U.S. is engaging in protectionism of its own, foreign policy may be influenced.

Bruce Kogut, a professor at Columbia Universitys Graduate School of Business, discusses whether or not protectionism will ultimately hurt the American automotive industry if foreign auto makers tax imported American cars.

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News & Politics

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• automotive industry
• Bruce Kogut
• economic crisis
• protectionism
• news
• Worldfocus
• World
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[stonescourt3]

@lindsey2021 i'd prefer the trade off and eat spaghetti-o's.

[cougher989]

no.

[lindsey2021]

protectionism solves except create hostile blood between countries. We can expect higher prices if jobs are kept in the US as Americans require higher wages. A big reason why we are afforded cheaper prices is because of the cheap labor from China.

[SavageJim01]

I cannot agree more, and unfortunately, it is up to we, the American consumers, to correct Aritrage, trade deficits with China, and jobs being exported to China.

We Americans must put aside the immediate cheap chinese and actually save to buy the more worthwhile made in the US.

Also, as citizens, we can excersise our rights to lobby or legislators to help do something & we need to exercise our duty to vote, & vote for legislators who will help us.

[bestwayusa1]

The great depression was cause by a loss of USA jobs to cheap labor. In the 90s people were buying more American products, causing are economy to do much better . But than many sheep type people were fooled into buying cheap foreign products. Making owners of these companies richer and the middle class poorer. Than offering less wages or else. Threating to leave the Usa. Dont be threaten , support American owned companies whenever you can at stores and on line Fair trade not dishonest free trade

[SavageJim01]

I am for protectionism in that we, the US do not trade with protectionist countries. And what China is doing is nothing short of protectionism. We can still trade with them, BUT china shoule be made to realize we will not be fully open inless they quit their games to screw Americans with a trade deficit. As a matter of fact, the US needs to also renegotiate with Japan; it is lame that Japan too is protectionist but the US is not.

But US protection needs to be done in a smart manner.

[SavageJim01]

But there in lies the fault. Smoot-Hawley was a horribly executed act. BUT Smoot-Hawley WAS NOT the reason for the depression. It only made it worse.

A certain limited but controlled form of protectionism that is executed well while STILL trading internationally is what is needed. Protectionism does not equal Smoot-Hawley.

[FlamingTide]

The fact of the matter is, Protectionism was the main reason the US slipped from a rescession into a depression back in the 1930s. You have to remember that once you protect your own business other countries start to do the same. Exports drop along with imports. Then all your stuck with are countries doing things inefficiently which is bad for everyone. Protectionism is a bit like communism- looks great on the outside- gets real dirty when you actually impliment it

[SavageJim01]

I have no earthly idea why the US is urging against protectionism. If anything, the US shouldnt be two faced & admit that its doing so to some extent to FIX its own econome before it can participate in the world again.

Sad, the biggest entity to cry about US protectionism is China. But China themselves have doe stuff thats protectionist such as manipulating their money, HEAVILY subsidizing their companies in their country, & doing other things to keep AMERICAN goods form being sold in China.

[sapins68]

every countries should build their own products