Just how Protectionist is President Obama?

[Euphonious_Polemic]

@cocopuffed

absolutely! anything with fifty stars and thirteen stripes.

All Righty then! Now that you have your priorities all in order, I’m sure your economy will be back on track in no time!

[Leaper]

@Euphonious_Polemic

That’s the thing though. Your scenario is impossible. There is no possible way that say, for instance, buying Canadian made steel would save Canada but do little for the US. We don’t just stuff the money you spend on our products into our igloos or blow it all on hookers and blow. We buy stuff. Mostly your stuff. Which helps your economy. See Chronos’ post.

Devil’s advocate: people and businesses everywhere are panicking and hoarding cash. Companies are laying employees off and ducking their heads. Banks getting TARP money are keeping it in their vaults. Citizens are buying less and less and saving more and more. What makes you think Canadian businesses and people will do any different with the money we give them?

[mswas]

I’m going to make one effort to bring this thread back to the Original Post.

So, Just how Protectionist is President Obama?

[Euphonious_Polemic]

He’s about as protectionist as expected. Before the election, there were many articles in Canada along the lines of “be careful what you wish for” in regards to Obama.

In general, the Democratic party is seen to be more protectionist in it’s policies. Obama will certainly be following the general principles of his party.

There are limits to how protectionist he can actually be though. Increasing numbers of international trade agreements will tie his hands to some extent. During the primaries, when Obama was making noises about renegotiating NAFTA, there was not too much worry here in Canada. We realized that political noises do not necessarily translate to reality on the ground. As our PM said at the time, if NAFTA is opened up, then EVERYTHING is on the table, including access to Canada’s energy.

So, in summary, Obama is protectionist, but no more so than expected, and there will be limits to what he can do about any protectionist sentiment within his own party. I’m not particularly worried.

[Grumman]

@Leaper

Devil’s advocate: people and businesses everywhere are panicking and hoarding cash. Companies are laying employees off and ducking their heads. Banks getting TARP money are keeping it in their vaults. Citizens are buying less and less and saving more and more. What makes you think Canadian businesses and people will do any different with the money we give them?

Isn’t one of the major goals of the stimulus package to free up the movement of money? If you believe there’s a significant risk that the Canadian businesses and people are going to sit on the money, doesn’t that same risk exist for the money going to American businesses and people?

[Declan]

@Grumman

Isn’t one of the major goals of the stimulus package to free up the movement of money? If you believe there’s a significant risk that the Canadian businesses and people are going to sit on the money,** doesn’t that same risk exist for the money going to American businesses and people?**

Yes , but Canadians dont vote down where the checks are being cut and neither does the rest of the world so thats irelevant.

For the most part we will see some of that money, we may not be the prime contractors ,but the sub contracters and widget makers will be supplying either directly to the hero projects, or back filling what those companys would have been doing in the first place.

Declan

[RickJay]

@Declan

Yes , but Canadians dont vote down where the checks are being cut and neither does the rest of the world so thats irelevant.

But the entire G20 all agreed to enact stimulus spending and not raise trade barriers, the idea being to avoid one country hoarding the cash.

This is something the USA has agreed to. It’s not asking a lot to ask a country to live up to agreements it made in good faith.

[DSeid]

His likely choice of Judd Gregg for Commerce signals strongly that he is not all that protectionist. Unless he plans on keeping him tightly muzzled. He needs to make some noises to be true to his campaign promises and his base. But he is a pragmatist as well.

[Declan]

@RickJay

But the entire G20 all agreed to enact stimulus spending and not raise trade barriers, the idea being to avoid one country hoarding the cash.

This is something the USA has agreed to. It’s not asking a lot to ask a country to live up to agreements it made in good faith.

Its not like i disagree with you and i am confident that the president has advisors both legal and economic reminding him. But when it comes to real politik, i also have no doubt that he would damm the torpedos and full speed ahead, if some countries get miffed, well thats what Hilary and her state department troops are for.

I remember french president miterand bemoaning this very fact, when he referred to the USA as a hyperpower. You cant sanction them in practice because there will always be some else who will deal with them.

Declan