China Schools U.S. on Free Market Economics
8:12 AM, Feb 13, 2009 • By BRIAN FAUGHNAN
The U.S. is only one of many of the world's advanced economies considering dramatic moves to promote economic growth. Among our leading trading partners, Australia and China are both considering how to accomplish this feat -- and both have considered retaliation against the U.S. for the 'Buy American' provisions that have been watered down, but still appear to violate commitments to our trading partners.
The Australian legislature has rejected a similar 'Buy Australian' provision because they do not wish to start a trade war. And in a move that should embarrass everyone, even China has shown more of a commitment to honoring its trade obligations than the U.S. Congress:
U.S.-China bilateral trade totaled more than $300 billion in 2008. While it's fashionable to complain about cheap Chinese products lining the shelves of WalMart, K-Mart, and Target, shoppers will notice if bilateral trade friction suddenly raises those prices. And if the U.S. does wind up losing a case at the World Trade Organization, it will be a highly embarrassing shot at an administration that frequently promised to smooth relations with the rest of the world.
Maybe the Obama administration can take a note on free-markets from China.