Those with a high school-level grasp of history understood that protectionist measures in a time of recession are a really bad idea. Many economists actually blame Smoot-Hawley — the “Buy American” provisions of their day — for turning the great recession into the Great Depression.
Despite warnings from even some liberal economists, Congress passed and President Obama signed the porkulus with a “Buy American” provision. Predictable result:
WHISTLER, British Columbia (AP) — Canadian mayors have passed a resolution that would potentially shut out U.S. bidders from local city contracts.
The resolution is in retaliation to “Buy American” provisions in President Barack Obama’s stimulus bill. Mayors voted 189-175 to approve the resolution at the Federation of Canadian Municipalities conference in Whistler, British Columbia.
The resolution says the federation should support cities that adopt policies that allow them to buy only from companies whose home countries do not impose trade restrictions against Canadian goods.
The mayors have agreed to hold off on implementing the retaliatory measure for 120 days, during which time the Canadian government intends to hold negotiations with Washington in hopes of coming to a compromise. Hopefully this insane protectionism comes to an end soon.


by Stephan Tawney on June 6, 2009