The EU has increased its pressure on the US to reconsider the “Buy American” clause in the $800bn (£567bn) economic recovery package now before Congress. The clause seeks to ensure that only US iron, steel and manufactured goods are used in projects funded by the bill. The EU and Canadian ambassadors to Washington have already warned that the clause could promote protectionism and trigger retaliatory moves. According to the BBC This is EXACTLY what contributed to the Great Depression.
The Smoot-Hawley Tariff Act (sometimes known as the Hawley-Smoot Tariff Act) was an act signed into law on June 17, 1930, that raised U.S. tariffs on over 20,000 imported goods to record levels. In the United States 1,028 economists signed a petition against this legislation, and after it was passed, many countries retaliated with their own increased tariffs on U.S. goods, and American exports and imports plunged by more than half. In the opinion of some economists, the Smoot-Hawley Act was a catalyst for the severe reduction in U.S.-European trade from its high in 1929 to its depressed levels of 1932 that accompanied the start of the Great Depression. Wikpedia
You can’t start raising protectionist laws now… not with the threat of retaliation looming. It will virtually cut off our overseas markets. Who’s the idiot that thought this was a good idea when historical references point to the polar opposite.
If this passes, this will be a common sight throughout the United States