This Guy is wrong

Protectionism

I noted this video on youtube today. It's by Jim and his stance on buying American . We have also seen of late a bit of a drive around the world of people advocating this idea to help their economies. Well history has shown that this in fact kills not only country economies but also global trade. Usually it's implemented by placing taxes or quotas on imports. What Jim asks for is just buy American . He says dont buy crap, thats ok nobody needs crap. He seems to think that there is an imbalance in wages between the 3rd world and the US He's right again. But he has to realize that as bad and low as the wages are in the 3rd world countries the US was paying it's workers to much too. As for no one is able to make good things as well as the US, he's very wrong. There are millions of examples of where the rest of the world are streets ahead of the US. The Auto industry just one example.

Has the World started the protectionist route ? I say most definitely yes. How you might ask. Well the most obvious thing is the bailouts of banks and most big business . The latest example is the state subsidies battle between the to big airline makers. Another protectionist route is also raising it's head and that is the battle ground of the Exchange Rates . That can be hidden in the quantitative easing that's going on now. Some think that the arguments for protectionism are good and will save them from the lows of a recession and carry them through . It could help in a short downturn but what the world is facing is something quite different . History shows that Protectionism has failed in a big way. Protectionism has also been accused of being one of the major causes of war.