re: George Bush, Protectionist

In response to this article by Pat Buchanan, I sent the following email:

Dear Pat,
In supporting the Bush Administration's bailout money for Detroit automakers, basically you're saying that since GM and Chrysler can't get me to give them my money voluntarily, the government should take it from me by force and give it to them.  How is that just?

Interesting that you raise the specter of Herbert Hoover to criticize Republican senators who opposed the bailout, as Hoover actually followed the prescription you and other protectionists support:  Hoover implemented the Smoot-Hawley Tariff Act, which raised tariffs on imported goods, ostensibly to "protect American businesses".  We see the result of that act over the next several years.

One common tactic used when fighting a war is to blockade a country, thus disallowing imports and forcing a country to produce all of its own goods and services.  Interestingly, the protectionists wish us to do the same thing to ourselves.

Protectionist tariffs and bailouts of poorly performing companies are acts of government intervention that reward failure and raise prices for consumers, while impeding innovation and choice.  Government intervention is not the best solution to economic problems, especially those that are basically caused by ill-advised government intervention.

Sincerely,
Dave Smith
Houston, TX

 

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