Tuesday, September 15, 2009

The more things change. . .

Background: Last week, President Obama imposed punative duties on tires imported from China. This make poor economic sense but perfect political sense. The United Steelworkers wanted the duties and Obama owes labor unions for their support. This is a typical win-lose political decision. American consumers lose. Domestic tire workers win. Keep in mind, there are far more Americans buying tires than making them.

Once again a president has abandoned free trade principles to appease a powerful labor union. Early in his term, President George W. Bush imposed duties on imported steel. Last week, President Barack Obama imposed duties on tires from China. In both cases, each president was pressured by the United Steelworkers and claimed he was punishing foreign exporters for "unfair" trade practices. In reality, American consumers are punished by higher prices. Seems like the more things change, the more they stay the same.

[Letter to the Editor. The Detroit News. Published 09/28/2009.]

No comments: