The original stimulus bill drawn up by congressional Democrats contained, in addition to many frivolous wastes of taxpayer money, a particularly offensive section entitled “Buy America.” This was a wolf in sheep’s clothing—or more specifically, protectionism dressed up as patriotism, with little attempt at disguise. After facing international criticism for exhibiting the kind of stupidity that caused a recession in 1929 and led to the Great Depression, Obama wisely reassured trading partners that America would not break any of its existing free trade pacts. He was hailed as the second coming by the global media for yanking his party back from the brink of an economic abyss. This may seem like a lower standard of leadership than we usually apply to politicians, but maybe that’s just me.
Observers feared that American protectionism would encourage other countries to follow suit, marking the beginning of a global trade war. The only response offered by protectionist and socialist lawmakers was the lackluster excuse that it would protect American jobs. What these reactionary fools didn’t understand is that until the world economy starts to recover, nothing America does individually will help their economy—not even a $2.7 trillion injection into the private market. Protectionism would harm recovery by reducing gains from trade, making everyone poorer. Some speculated that other nations might respond by putting up their own trade barriers. And lo and behold, within days of the “Buy America” announcement, Jack Layton and his gang in the far left corner of Parliament were trumpeting the need for Canada to introduce similar protectionism in our country.
While erecting trade barriers around America might reap an extremely limited short-term benefit, it’s certainly not in Canada’s interest. Our export sector, a huge driver of our economy, is only now beginning to recover from the decimation it suffered when our dollar climbed over parity last year. A new round of tariffs would doubtlessly lead to reciprocation from other countries and eliminate the profit margins of export-based firms, or force them to raise prices to uncompetitive levels. Canada is not a large enough player in most industries to meaningfully influence global market prices. Only our suppliers, manufacturers, and small businesses will be affected, resulting in massive layoffs and stagnation once again.
In an increasingly connected global economy, no country—not even America—can afford to go it alone. President Obama demonstrated as much when removing the worst parts of a stimulus bill that, despite the spin of bipartisanship, was party-line Democratic. Congressional leaders like Nancy Pelosi and Harry Reid need to realize that in spite of their congressional majorities, they must resist the urge to slam their pet projects through Congress without even seeking a modicum of bipartisan support.
If there is one thing in short supply right now, it is public tolerance for political gamesmanship. The first effort at pandering to big labour ended with a presidential reversal and widespread global condemnation. This is one case where, if at first you don’t succeed, giving up is the better option—for America, its leaders, and the world.
