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Bernard Madoff, convicted of running an $65 billion Ponzi scheme, was sentenced to 150 years in jail. What’s your take on his punishment?
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Joseph Quinlan, a managing director and the chief market strategist of Bank of America, Global Wealth and Investment Management, joined the firm in June 2003. Quinlan is a leading expert on global capital flows and the transatlantic economy. He has been a senior transatlantic fellow (nonresident) at The German Marshall Fund in Brussels, Belgium, since 2003. His research there centers on regional and global trade and investment flows. As a fellow, he regularly briefs congressional leaders on global economic/financial affairs and has testified before the European Parliament.You've heard it for months and you will hear it for the rest of the presidential and congressional campaigns: U.S. reliance on cheap foreign goods and labor is sapping America of jobs and economic vitality. But different remedies being suggested could end up doing far more damage than any that might be incurred by full U.S. involvement in the global economy.
"It is more than ironic -- frightening may be a more apt description -- that at precisely the moment when the United States is most exposed and dependent on the global economy, the winds of U.S. protectionism are whipping at full gale," warns Joseph Quinlan, chief market strategist for the Global Wealth & Investment Management division of Bank of America.
Quinlan says that any protectionist measures imposed by the United States will almost certainly be countered by the affected nations. And that could have devastating consequences on several economic fronts. U.S. exports, one of the few bright spots in the current downturn, would drop precipitously. The nation's already shaky credit markets would likely be rattled yet again.
"And that's just for starters," Quinlan writes in a special report on the threat of protectionism. "A cold shoulder from the U.S. could also impair corporate America's ability to operate in foreign markets and hinder access to critical foreign inputs like labor, natural resources, and capital." He explores the likely impact on all of those areas as part of a plea for Americans and policymakers to recognize the long-term perils that protectionist moves could have on the country.
POSTED BY: billdacat (June 18, 2008 08:49 AM)
Using the scare of protectionism to stop our country from having fair trade with other countries shows pure ignorance.
Study some history of this country's trade and look at what China is doing right now to build up its industries and you will see that our founding fathers used protectionism to build our industries and China is protecting several of its industries from ANY foreign competition.
The pile of foreign junk coming into our country is putting us into debt. Between our government and our lopsided trade, this country is going into debt at a rate of a TRILLION a year. Meanwhile, people cry protectionism if we demand FAIR trade.
Will you still want fair trade when your gas is 4$ a gallon(oops it already is), your eggs are 5$ a dozen, and your car costs 50,000 due to the loss of all domestic manufacturer competition? how much does that Camry cost in japan? Why does it cost more there than here? Isn't that called dumping?
protectionism is a buzz word the same as "FREE" trade. Free trade is a myth. Since every country has taxes and regulations, it is a lie... it is used to drive down wages and benefits.. and to reduce regulations that are used to improve the living conditions in countries.
POSTED BY: Hank (June 19, 2008 11:49 AM)
Excellent comments, billdacat! My thoughts, exactly. Re-regulation and improved control of foreign trade and measures to reduce the incentives of U.S. corporations to use foreign labor and outsource operations can, and must, be carefully and selectively imposed, but are practical and are now essential. Our tax system can be used for these efforts -- for only one example, disallow deductions from corporate taxes for certain costs we disfavor. Let's get to it!
POSTED BY: lagigo (July 15, 2008 04:32 PM)
billdacat, I read you comments and checked one of your 'facts'. A 2008, 4cyl Camry is advertised at $29k in Japan and the MSRP in US is $21k. Maybe we can export US built Camrys to Japan and sell them cheaper there.
Some of the other 'facts' you noted are also wrong but the car price interested me most.
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