Subscribe to our free, weekly email newsletter!



Smoot-Hawley redux?

While there is scant evidence that a job crisis would be eased with a “Buy American” policy, several prominent economists believe that protectionism would make the situation far worse.
By Patrick Burnson, Executive Editor
October 05, 2010

According to the Wall Street Journal, U.S. shippers are going to have a hard sell when in comes to going global.

In its feature, “Americans Sour on Trade,” readers are told that popular sentiment against off-shoring and out-sourcing is being driven by the continued slump in U.S. employment figures.

While there is scant evidence that a job crisis would be eased with a “Buy American” policy, several prominent economists believe that protectionism would make the situation far worse.

Curiously, with President Obama now promoting an aggressive export agenda, such a development would hasten the rise of tariffs on American goods that cross-border shippers are already seeing in Mexico.

Speaking with Josh Green, CEO of Panjiva, an online search engine with detailed information on global suppliers and manufacturers, we found an enlightened voice:

“As trade professionals we understand the benefits of unfettered commerce,” he said. “But try telling that to someone who has been out of work for some time.”

Indeed, our job as communication specialists is to counter the misinformation of mainstream media and calculating politicians and be evangelists for globalization.

The first move, one might argue, is to revisit the unintended consequence of the Smoot-Hawley Tariff Act of 1930. Forget “double-dip.” Now we’re talking Great Depression.

 

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Many companies are turning to Global Trade Management (GTM) as a viable solution to address the complexities associated with international trade. But how do you successfully build a business case for GTM software?

Various media outlets reported this week that UPS will pay $25 million to settle allegations that it filed false claims to the federal government over guarantees it made related to delivery of Next Day air overnight packages.

While the dust continues to settle at West Coast ports after a nine-month labor dispute that saw the two main parties involved–the Pacific Maritime Association (PMA) and the International Longshore & Warehouse Union–reach a tentative labor agreement on February 22, the PMA said yesterday that its members voted to ratify a new contract with the ILWU.

The United States House of Representatives yesterday passed legislation, entitled H.R. 2353, the Highway and Transportation Funding Act of 2015, by a 387-35 margin that extends current law and authorizes surface transportation programs through the end of July.

As the supply chains of high-tech shippers continue to mature and innovate, coupled with rapid growth, it is not a huge surprise to see them further leverage current strategies and lay the groundwork for newer ones, when it comes to further expanding their manufacturing supply chain capabilities. That was a key theme in the fifth Annual UPS Change in the (Supply) Chain (CITC) survey that was rolled out today.

Article Topics

Blogs · Trade · Exports · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA