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 Protectionism - A Cure or a Trade War Catastrophe ?

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PostSubject: Protectionism - A Cure or a Trade War Catastrophe ?   Thu Feb 05, 2009 4:59 pm

Australia and Japan have added their angry voices to the Europeans over Obama's protectionist stance in the stimulation package passed by the Senate.
http://www.reuters.com/article/newsOne/idUSTRE51421T20090205

I'm starting this thread for information and discussion on the trend to protectionism.

I haven't time to do justice to an OP on protectionism, but it is an important topic cropping up in a number of threads. In a sentence, my view is that it's a disaster, divides people on race lines and historically has led to war. It is not referred to as "beggar my neighbour" for nothing. The various bail outs of industries are in themselves increasingly recognised as protectionist. So long as there are national military forces, when a crisis comes, protectionism will come with it. Different solutions are needed that are international, equitable and co-operative.
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