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February 03, 2009
Obama's Love Triangle
Obama...labor unions...Europe.
Someone's heart was bound to be broken.
The European Union warned the US yesterday against plunging the world into depression by adopting a planned “Buy American” policy, intensifying fears of a trade war.Obama is doing the right thing here. He knows American companies simply cannot produce products at a comparable price to those available overseas, thanks to the demands of the unions to which he's beholden. Recessions force changes in spending behaviors, making cheaper products more attractive.The EU threatened to retaliate if the US Congress went ahead with sweeping measures in its $800 billion (£554 billion) stimulus plan to restrict spending to American goods and services.
Gordon Brown was caught in the crossfire as John Bruton, the EU Ambassador to Washington, said that “history has shown us” where the closing of markets leads — a clear reference to the Depression of the 1930s, triggered by US protectionist laws.
Last night Mr Obama gave a strong signal that he would remove the most provocative passages from the Bill.
The president's actions are admirable, as long as he can hold the line against the unions.
Posted by slublog at February 3, 2009 10:59 PM
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Comments
"He knows American companies simply cannot produce products at a comparable price to those available overseas, thanks to the demands of the unions to which he's beholden. Recessions force changes in spending behaviors, making cheaper products more attractive."
I wouldn't get giddy yet, because from my reading of the bill any projects utilizing these funds have to require Davis-Bacon wage rates. These will artificially increase the price of projects more than the cost of foreign steel; there is no change in spending behaviors, and this is another gift to the unions to which he's beholden.
The Buy America Act is not a static requirement, it is only a preference when the price of the domestic product does not exceed an amount set by the gov't. - say 10%.
Delete the wage rate requirements and maybe I can agree they are serious about this and have learned a lesson from the recession
Posted by: Anonymous at February 4, 2009 05:52 PM